National Strategy for Social Innovations and Social Enterprises

Back to Atlas

The German government has unveiled a comprehensive National Strategy for Social Innovations and Social Enterprises, aimed at providing greater support for companies focused on social and societal goals.
What are the main aims and objectives?

The National Strategy for Social Innovations and Social Enterprises aims to enhance the role of social entrepreneurs in addressing societal challenges through sustainable and participatory means. It seeks to improve access to financial resources and create a supportive legal and regulatory environment for social enterprises. The strategy emphasizes fostering social innovation by promoting new social practices and organizational models that address issues like sustainability and climate change. Additionally, it includes the development of a central platform for networking and information sharing, and aims to facilitate collaboration across sectors to maintain the impact of social innovations beyond initial government support. Overall, the strategy integrates social innovation into broader economic and innovation policies, recognizing its potential to drive significant societal change.

How does the program work?

The National Strategy for Social Innovations and Social Enterprises underpinned by seven main guiding principles:

  1. Act sustainably: The strategy aims to contribute to achieving the UN Sustainable Development Goals and equivalent living conditions across Germany.
  2. Shape the transition: It recognizes social enterprises and innovations as catalysts for social change and aims to strengthen their role in shaping transitional processes.
  3. Recognize the impact: The strategy emphasizes the importance of measuring and demonstrating the social impact of innovations and enterprises.
  4. Make use of diversity: It acknowledges and seeks to leverage the diversity of stakeholders involved in social innovation and entrepreneurship.
  5. Boost entrepreneurial spirit and individual responsibility: The strategy supports commercial activities and individuals who take responsibility for developing social innovations and enterprises.
  6. Support participation and collaboration: It fosters participatory and cooperation-based development of innovations and strengthens collaborative processes in the social economy.
  7. Think innovation holistically: The strategy promotes a systematic understanding of innovation, viewing social and technological innovations together rather than as rivals.

The strategy consists of 70 measures across 11 fields of action which are: 

  1. Optimise the policy environment and remove structural impediments
  2. Strengthen a socially innovative and socially oriented startup culture and the support structures
  3. Promote networking, collaboration and transfer
  4. Use public procurement as a lever
  5. Develop and expand funding instruments as needed
  6. Drive growth and impact through optimised financing offers
  7. Expand research on social innovations and social enterprises
  8. Promote skills development for social innovations and socially responsible business activities
  9. Establish focus on impact and impact measurement as the standard
  10. Increase visibility and recognition
  11. Seek European and international solidarity

Included within the 70 specific measures are the following: 

  • Examining funding programs to ensure accessibility for social enterprises, including non-profit SMEs.
  • Developing new financing models like impact investment funds and a "Social Impact Fund" using assets from orphaned accounts.
  • Expanding the INVEST venture capital grant program to include mezzanine financing and non-exit-oriented enterprises.
  • Creating a platform for social innovations to act as a central point of contact and networking hub.
  • Incorporating social innovation criteria into public procurement processes and developing skills in contracting authorities.
  • Expanding research on social innovations through initiatives like "Junior Research Groups in Social-Ecological Research" and "Transformation Clusters on Social Innovations for Sustainable Cities".
  • Developing educational programs on social innovation and entrepreneurship, including at universities.
  • Creating uniform standards for impact measurement and developing a set of indicators across ministries.
  • Increasing visibility through communication campaigns, summit meetings, and trade fair support.
  • Advocating for improved EU-level policies and funding for social enterprises and innovations.
  • Expanding cross-border cooperation and learning from international best practices.
  • Establishing a working group for social innovations and social enterprises with representatives from federal and state governments.
  • Launching a pilot investment in an impact investment fund to support social enterprises.
  • Developing a National Strategy for Financial Education in collaboration with the OECD.

To see the full 70 measures and report in English click here. 

What is the overall cost?

There is no available information about the cost of implementing the strategy. 

How was it implemented?

Published in 2023, the strategy was developed against the background of several international and European initiatives, including the Social Economy Action Plan of the European Commission, the Luxembourg Declaration, resolutions from the International Labour Organization (ILO) and the Organisation for Economic Co-operation and Development (OECD), and a United Nations resolution on promoting the social and solidarity economy.

A key part of the strategy's development was an extensive consultation process. This involved seven workshops where stakeholders from all sectors were asked about the needs and potential of social enterprises and social innovations. Additionally, an online consultation was conducted, receiving approximately 210 comments that were systematically evaluated and incorporated into the strategy.

The strategy was jointly developed by multiple federal ministries, particularly the Federal Ministry for Economic Affairs and Climate Action (BMWK) and the Federal Ministry of Education and Research (BMBF). This inter-ministerial collaboration ensured a comprehensive approach that addresses various aspects of social innovation and social entrepreneurship.

The strategy also took into account existing initiatives at the state level in Germany, as several Länder (states) had already begun focusing their policies on social innovations and social enterprises. This helped to align the national strategy with ongoing regional efforts.

What impact has been measured?

No information about the impact is yet available, however, the the German government plans to monitor and evaluate the strategy's progress in the following ways:

  • The government will record the progress and successes of the strategy and monitor its implementation through cross-ministerial discussions.
  • A meaningful indicator system with clear, overarching goals will be developed, taking into account the prime responsibilities of the various ministries involved and with inter-ministerial coordination.
  • This indicator system will be monitored during implementation of the strategy.
  • Relevant stakeholders may be involved in the process of developing and monitoring the indicator system.
  • The further development of the strategy is intended to be made compatible with the activities of Germany's European and international partners.
  • The government aims to create opportunities and structures for cross-sectoral discussions and joint action to strengthen social innovations and social enterprises in a targeted manner and to better link government activities with those of civil society, science, business and the capital market.
  • Relevant stakeholders will be involved in implementing and further developing the strategy, with the government pooling their skills and using their expertise.
Notes + Additional Context

The strategy aims to learn from experiences of other countries, intensify discussions with international partners, expand cross-border cooperation, and implement best practices from abroad in Germany. It also seeks to advocate for improved EU-level policies and funding for social enterprises and innovations.

The National Strategy for Social Innovations and Social Enterprises seeks to align with several European and international initiatives, including:

  • The Social Economy Action Plan of the European Commission
  • The Luxembourg Declaration on social economy enterprises
  • Resolutions of the International Labour Organization (ILO) related to social enterprises and the social economy
  • Recommendations and initiatives of the Organisation for Economic Co-operation and Development (OECD) on social innovation and social entrepreneurship
  • A resolution of the United Nations on promoting the social and solidarity economy for sustainable development
  • Activities and strategies of Germany's European and international partners in this field
  • The European Commission's plans to improve areas like public procurement, access to funding, and legal frameworks for social enterprises at the European level
  • Cross-border initiatives to support civil society engagement and simplify equivalence checks for non-profit status across EU member states
  • Discussions within the EU, OECD, and partner countries of German development cooperation on strategies for social innovation and social enterprises

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom