Social Enterprise NL: a catalyst and a source of inspiration

Social Enterprise NL aims to help support an economy that “works for everyone” – one which is circular, inclusive and free of poverty. By supporting social entrepreneurs through advocacy, advice, workshops and networks, the foundation aims to bring the prospect of a better world that much closer.

A social mission

So what exactly is social entrepreneurship? Some might assume it’s just the latest lingo for the now rather hackneyed “corporate social responsibility” (CSR). “Absolutely not,” says Stefan Panhuijsen. According to the co-director of Social Enterprise NL, CSR often simply amounts to “doing a little less badly than the rest”, by contrast with social entrepreneurs, whose social mission directly informs their strategy and operational approach. It’s true that while the concept of profit is still in play, it’s just a means, not an end in itself.

Learning from one another

Stefan’s philosophy fits seamlessly with ABN AMRO’s purpose of “banking for better, for generations to come”. Leontien van Tilburg, who works in the bank’s Sponsorship Department and oversees its Impact Portfolio, says, “It’s about more than just turning a profit. Like other entrepreneurs, social entrepreneurs do want to make money, but their top priority is to make an impact on society. We see Social Enterprise NL as a source of inspiration both for ourselves and for our clients.”

The collaboration between the foundation and ABN AMRO dates back to 2012, and the bank was one of its founding partners. Mutual reinforcement has always been the goal, with ABN AMRO providing training in financial issues to social entrepreneurs and Social Enterprise NL hosting inspiration sessions at the bank focusing on socially responsible procurement. Most recently, Stefan and two social entrepreneurs were guests on an online ABN AMRO talk show about social entrepreneurship in the COVID-19 pandemic.

“ABN AMRO takes its mission very seriously,” Stefan says. “The bank regularly speaks to people across the community about how it can help build a better society. At the same time, there’s still room for improvement at ABN AMRO – one key example being access to financing for social entrepreneurs.”

A growing market

Leontien is enthusiastic about what she sees as the richness of Social Enterprise NL’s roster of members. “What I find most inspiring, though,” she admits, “is the mindset of those members, of whom there are over 400. Social entrepreneurs are tuned into the world around them in a way others may not be and are quick to respond to social issues. As a result, they get big business – including banks like ABN AMRO – to stop and think.”

Although no official figures are available, a 2016 study conducted by McKinsey estimated that the number of social enterprises grew by 70 per cent from 2011 to 2016. According to data furnished by the Social Enterprise Monitor, social entrepreneurs are seeing an average growth in turnover of 10 per cent year-on-year. All this means this group is gradually establishing a higher profile and greater visibility for itself. Businesses looking to join the foundation are screened by means of a questionnaire and an interview so that they can demonstrate that the social mission is their main priority. Those whose involvement in society is limited to marketing stunts are refused membership.

Professionalisation

The foundation is turning fewer and fewer businesses away, though. After all, the days when a company’s social involvement amounted to little more than a paragraph on its website are over. At the same time, there’s less and less public interest in what are perceived as “good intentions”. Stefan explains, “To put it bluntly, it’s no longer acceptable to produce a fully sustainable pair of jeans which fall apart after they’ve been worn three times. Social entrepreneurship has made great strides in professionalisation in recent decades.” The collaboration with ABN AMRO is intended to further promote this trend. “ABN AMRO’s reach is huge, so our aim is to make social entrepreneurship more mainstream.”

Leontien concludes, “Our Social Impact Fund also plays a major role here. In fact, we’ve been investing in social and sustainable businesses since 2013 via the fund. These are direct investments of €500,000 to €1.5 million, all of which are helping to develop the social enterprise market. With the help of Social Enterprise NL, we hope to show the public just how important this area is to us and continue to increase support for social entrepreneurship, both in and outside the bank.”