Financial instruments under the European Social Fund Plus (ESF+) and other structural funds are an efficient way to invest in growth and development across the EU, including for upskilling and re-skilling. They can be set up by Member States and regions to help finance loans, guarantees, equity and other risk-bearing mechanisms that support projects on the ground, and are particularly helpful to entrepreneurs, as well as for advancing the social economy. Lending mechanisms can also benefit a wide range of people – particularly students, who can pay for their education and living costs.
By the end of 2021, these pathways to funding have supported nearly 11 000 projects and people, including over 5 600 small and medium enterprises. Over 90 per cent of these businesses were microenterprises.
Social Entrepreneurship
Financial Instruments have enabled hundreds of start-ups, entrepreneurs and social enterprises to build a path to success.
MicroStart, Belgium’s leading microfinance institution, is co-financed by the European Social Fund Plus and the EU Asylum, Migration and Integration Fund to foster integration and boost entrepreneurship . Last year alone, MicroStart injected around €6.5 million into Belgium’s economy while helping 665 entrepreneurs, mostly migrants and refugees, rebuild their life. Thanks to this funding, Sally Ghannoum is the proud owner of Dilbi, an oriental restaurant — and the most sought-after table reservation in Antwerp — serving fresh and tasty Syrian and Arabic food.
The Polish National Fund for Social Entrepreneurship (NFSE) mobilised nearly €37 million over the 2014-2020 period to protect hundreds of social economy enterprises (SEEs) all over the country. Supported by the European Social Fund, this financing helped numerous social enterprises keep their doors open during difficult times – including Honorata Szatanik and Piotr Stachulak’s cheese-producing social cooperative. A €22 000 loan through this fund enabled them to navigate the pandemic, supporting their activities and allowing their business to stay solvent.
Investing in Skills
‘StudioSì’ focuses on students from the eight regions of Southern Italy’s Campania, Calabria, Puglia, Sicilia, Basilicata, Sardegna, Abruzzo and Molise regions. Students are offered loans with zero interest for the duration of their course – ensuring they can continue their education. 1 200 loans, worth over €30 million, have already been signed, and the instrument is expected to support up to 3 500 students by the end of 2023.
Malta’s ‘Further Studies Made Available (FSMA)’ financial instrument provides zero-interest loan support – made possible through an ESF-backed loan guarantee – as well as grants to lower-income students. These funds provide vital financial support, complementing existing assistance from other sources, and ensure students can continue their degree and certification courses. The instrument is 80% funded through the ESF and 20% through national funds, with over €1.35 million in grants and €1.65 million in loans.
