Facing challenges of long-term unemployment and remaining difficulties for integrating disadvantage groups into the labour market, the SIV project will introduce a novel instrument to increase the capacities of social enterprises and public stakeholders for leveraging private capital for solving social challenges of unemployment.
The partners will jointly test the initiation of Social Impact Funds in the CE countries to make use of private capital for integrating disadvantaged- groups into the labour market. On this line, the partners will also establish the capacities for an incentive system for SMEs to hire long-term unemployed people, based on a voucher system.
The voucher system will be financed via the Social Impact fund. Building on these pilot activities, the partners give guidance to stakeholders on how to create the necessary capacities and abilities to replicate both the Social Impact Fund and the voucher system.
The main objective of the project is to form new modes of cooperation between private organisations and social sector enterprises to foster capacities for financing social innovations in the field of reducing long-term unemployment. The institutional abilities are created for introducing and sustaining an alternative financing mechanism (SIF) and a social innovative framework for bridging gaps between long-term unemployed and employees (voucher system). The project is in line with the specific focus the thematic focus SO 1.2 targeting the “integration of migrants and other disadvantaged groups into society and the labour market”, as within the SIV project partner will jointly plan and implement both the SIF and voucher system in a pilot action. The institutional target group are social enterprises financial intermediaries, with the end-user being long-term unemployed people, who have difficulties entering the labour market due to disadvantages, such as ethnic / cultural background (migrants / minorities), personal history (offenders) or low qualifications. The project will create job opportunities for those people by reducing the reluctance of potential employers via financial incentives based on a voucher system. Both design and operational aspects are documented and replicable by other CE stakeholders. Within the SIV project advances are made for a further uptake to achieve lasting capacities in CE for social innovations.
Problems arising from the limited public financial capacities, reluctance among companies in hiring people form disadvantaged groups and problems of acquiring jobs with disadvantages are countered. Thereby the project will introduce a mechanism to overcome these shortcomings and enable a endurable capacities for the integration of disadvantaged groups into the labour market. Expected project results will be:
- Capacities for lasting private capital leverage and socially innovative mechanism for the integration of disadvantaged groups into the labour market.
- The reduction of long-term unemployment in the partner regions
- Decrease of labour shortage in the partner regions and thereby increased productivity of SMEs
- Tool kit and trainings for broad uptake of the mechanism, strengthening the capacities for social innovation in CE.
A baseline for measuring the impact will be drawn with the beginning of the project (evaluation matrix). Nonetheless, from past experience and a qualified forecasting it can be estimated that in 2020 approx. 1 Million € additional private funds will be leveraged, creating new jobs and 2021 further 1,2 Million € additional private funds (philanthropic investments) will be leveraged. The tool kit (starter kit / webinars) will be used by approx. 400 organisations in CE enabling them to initiate similar activities.
Social Entreprise Stuttgart DE
CEF - cooperative for ethical financing HR
Fund 05 -Foundation for Social and Impact Investment SI
IFKA Public Benefit Non-Profit Ltd. for the Development of Industry HU
Caritas of the Archdiocese Vienna AT
Centre for Community Organizing Northern Moravia CZ
Rzeszow Regional Development Centre PL
Cooperation Fund Foundation PL
Social Welfare Service of the Protestant Churches in Württemberg DE
Vienna University of Economics and Business AT
Ministry of Labour and Pension System of the Republic of Croatia HR
1.3.2019 - 28.2.2022
Total budget: 2.678.810,33 EUR
Co-financed in 85% by: