Funding
Having assessed the deficiencies and needs related to the demand side of a social finance market, this topic focuses on the supply side of the social finance market. More specifically it describes the main funding sources that SSE entities can have access to. It explains why and how the very nature and objectives of social and solidarity economy organisations allow them to reach out to a variety of different funding sources in order to finance their activities and operations. The topic initiates its presentation from sources related to those directly involved in a social venture, such as members and their communities. It then evolves to present more institutionalised forms of capital provision, such as dedicated financial intermediaries. Furthermore, it highlights the critical role of public funding and related policy measures which, when appropriately planned, may offer multiple opportunities for SSE entities to finance their business models and deliver their impact potential. Finally, this topic places specific focus on the divergence of objectives and interests between financial suppliers and recipients of funding, and underlines the importance of selecting among possible available options the appropriate funding source to cover different funding needs. Matching the available forms and amounts of finance with the desired purpose is a challenge in most markets because the risk and return expectations (both social and financial) of investors and investees often do not align.