Social Entrepreneurship Netzwerk Deutschland e.V.

SEND e.V.

SEND wurde 2017 von zahlreichen Unternehmern und Stakeholdern im Sozialunternehmertum in Deutschland gegründet.

Lobbying Activity

Response to European Innovation Act

30 Sept 2025

We welcome the ambition of the European Innovation Act (EIA) to remove fragmentation, simplify rules, improve access to finance and infrastructures, and make procurement more innovation-friendly across the Single Market. To fully achieve these goals, the EIA should explicitly recognise and integrate social innovationnew solutions that meet societal needs and create measurable social valuealongside technological innovation. Why social innovation matters for the EIA: It is a proven engine of inclusive growth and resilience. Social innovators operate close to end-users and public services, accelerating uptake and diffusionexactly what the EIA aims to do. The sector is dynamic and scaling. Across Europe, social enterprises, cooperatives, associations and mission-driven ventures are professionalising, attracting talent and investment. It aligns with EU priorities (green and digital transitions, cohesion, skills, competitiveness). Social innovation converts technology into adoption, accessibility and behaviour changeturning inventions into lived improvements. A gap the EIA can close: The Call for Evidence rightly targets barriersfinance, testing, procurement, access to R&I infrastructures, and policy coordinationthat also constrain social innovators. Yet social innovation is not clearly named or framed. Without explicit inclusion, horizontal measures risk serving mainly deep-tech firms, while mission-driven organisations with different asset bases and revenue models remain under-reached. Recommendations: 1. Define scope. A recital and definition should state that innovative companies in the EIA include social economy entities and mission-driven organisations engaged in market activities. This creates a legal hook for tailored measures and ensures coherence with existing EU initiatives. 2. Finance fit for purpose. Complement traditional approaches with instruments reflecting social innovators realities: revenue- and outcomes-based finance, guarantees for service contracts with public buyers, and blended-finance windows that crowd in private impact capital. Connect these to existing EU programmes to avoid duplication and scale what works. 3. Sandboxes for social outcomes. Extend sandbox principles to social-policy domains (care, health, inclusion, skills, housing, local mobility). Combine regulatory learning with living labs and access to relevant research and testing infrastructures, with clear safeguards and independent evaluation. 4. Innovation-friendly and socially responsible procurement. Make social value (inclusion, accessibility, job quality, prevention) a standard award dimension in innovation tenders. Provide model clauses, outcome-based specifications, and SME/social-enterprise-friendly procedures and training for contracting authorities. 5. Talent and ownership. Ensure EIA measures on employee ownership and mobility work for cooperative and mission-locked governance models so social innovators can attract and retain skilled workers on equal footing. 6. Data and impact metrics. Establish an EU indicator set for social innovation (adoption rates, outcomes achieved, public value created) and integrate it into EIA monitoring so diffusion is measured not only by patents or VC volumes but by societal results. Embedding social innovation will: A) Accelerate deployment and diffusion by shortening feedback loops between innovators, users and regulators. B) Create first markets through socially responsible innovation procurement, improving service performance and providing predictable demand. C) Strengthen competitiveness and cohesion by turning technological capability into widely adopted solutions in all regions, including less-innovative ones. By mainstreaming social innovation the EIA can unlock a powerful, fast-maturing part of Europes innovation system. This will speed up diffusion, crowd in private capital, strengthen public services, and deliver inclusive, sustainable growth across the Single Market.
Read full response

Response to 28th regime – a single harmonized set of rules for innovative companies throughout the EU

30 Sept 2025

The challenges facing society today - from child poverty and educational inequality to job market integration and mental health - require innovative, inclusive, and long-term solutions. At Social Entrepreneurship Netzwerk Deutschland (SEND), our members address these challenges and many more every day using entrepreneurial means. Social enterprises create social impact, whose value to society cannot always be adequately expressed financially, meaning they require specific legal entities, patient capital and outcomes-based financial instruments. Per both EU and German definition, social economy actors must reinvest the majority of their profits into their mission. This safeguards their long-term commitment to solving the problem they were founded to address and ensures that the value they create benefits society as a whole, not just individual shareholders. Alternatives to exit orientation: Steward ownership is a business model where voting rights remain with mission-driven stewards rather than being tied to capital. Investors who share the company mission can provide capital and receive fair, time-limited returns, but lasting control and profits remain dedicated to the purpose. This guarantees independence, continuity, and mission-driven growth, rather than pressure for short-term exits. Advantages of non-exit-oriented models: Exit-oriented start- and scale-ups play an important role, but they are often bound by short investment cycles and the transfer of voting rights to external investors. This can lead to pressure for rapid exits, mergers, or acquisitions that risk transferring profits, data, and even ownership outside the EU. Steward ownership offers a complementary path: it enables companies to scale while safeguarding their independence, ensuring that economic value and decision-making remain rooted in Europe. Recognising steward-owned enterprises within a 28th regime would allow both exit-oriented and non-exit-oriented start-ups to thrive side by side, thus strengthening diversity, innovation, and ultimately economic resilience. Our position: We welcome the initiative of the 28th regime to simplify cross-border business in the single market and increase efficiency. The quick and digital founding process and accessibility through 1 start capital lower the entry barriers for Europes innovators. We support the focus on innovative companies, start- and scale-ups, and KMUs; the protective mechanisms to safeguard labour standards; and the protection against killer acquisitions, which drain Europes innovation and undermine fair competition. As stated above, the ability to legally safeguard mission and assets across borders is crucial for social enterprises. A 28th regime should explicitly enable mission- and asset-lock clauses (as in steward ownership), ensuring companies cannot be sold off or diverted from their purpose when expanding EU-wide. As access to suitable financial instruments remains the biggest hurdle for social entrepreneurs in Germany and Europewide, we particularly support the harmonisation of equity-like debt instruments (e.g. silent partnerships, profit-related loans) to make capital more accessible for non-exit-oriented companies. All structural barriers to mezzanine finance should be removed in a 28th Regime. A 28th regime should additionally create a level playing field for participation in EU procurement and funding programs from which purpose or impact-driven actors often find themselves excluded.A focus on outcomes is key. A 28th regime should harmonise rules for impact investment, blended finance, and EU-backed guarantees to ensure social economy and purpose-driven actors can benefit equally. Anchoring alternative ownership structures and capital for impact in the 28th regime not only strengthens innovation but also secures long-term societal value, bolstering EU values.
Read full response

Response to Mid-Term Review: Social Economy Action Plan

16 Jul 2025

What have been the most significant achievements in the implementation of the social economy action plan since it was adopted in 2021? SEAP played a large role in providing momentum for the topic throughout many member states. In Germany, where we are active, a national strategy was agreed in September 2023, building on the impulses in the SEAP and encompassing over 70 measures, many of which were quickly implemented. The SEAP sent an important signal to legitimize and anchor the topic of the social economy leading to awareness and recognition. It is vital in the future that this commitment is renewed, so that member states can continue to build on the strong foundation. The Gateway is a helpful tool What new developments have you observed in the social economy ecosystem since the action plan was adopted? In Germany the sector continues to grow. According to the German Startup Association monitor, 45% of entrepreneurs consider themselves social entrepreneurs. (Startup Verband, 2024) According to a study by the consulting firm Ramboll (Ramboll, 2025), around 156,000 to 172,000 companies in Germany belong to the social entrepreneurship sector (many of whom have a SME character) - this corresponds to over three per cent of all companies. They generate annual sales of up to 82 billion euros and secure over three million jobs - more than the automotive industry. The drive to release and execute the national strategy in the German government was significant. Which sectors could be most effectively supported by social economy business models and approaches in the coming years? The huge challenges related to an aging population and increased migration due to ecological and economic migration. Digital learning platforms, (digital) support with bureaucracy/visas/integration, support with filling vacancies and training new workers. Preventative healthcare. Housing: both new living concepts and more ecological/circular building methods. What measures should be prioritised in 2026-2030 to help the social economy achieve its full potential? Renewed commitment to the SEAP, also beyond 2030 Evidence- and outcomes-based policy making Non-exit-oriented investment capital and focus on scaling social enterprises Outcomes-based finance for non-profits and institutional funding rather than project funding (Lack of suitable capital and financial instruments still significantly hinders growth of social enterprises and the social economy sector as a whole) Continuation of ESF/ESF+ Embedding the social economy into mainstream economic and industrial strategies Rather than being separate from the competitiveness agenda, the SEAP broadens the definition of competitiveness making it more sustainable, fair, and resilient while also opening new markets and mobilising more people and ideas into the economy. The SEAP is not just aligned its integral to delivering on the EUs updated strategic agenda. Strong & Competitive Europe -> SEAP boosts resilience & innovation in SME-dominated sectors Green & Digital Transitions -> SEAP mobilises actors for sustainable & inclusive transitions Cohesive Society -> SEAP reduces exclusion, fosters skills & participation Global Leadership & Values -> SEAP exports EU social economy model & partners globally Are there any specific initiatives or examples of best practices that you believe should be highlighted or replicated across the EU? Legislation allowing for the prioritization of social economy actors in government procurement. Eg. 100,000 immediate allocation Mobilising dormat assets for the social economy: https://www.gov.uk/government/publications/the-dormant-accounts-scheme Outcomes based funds: https://www.gov.uk/government/news/largest-fund-of-its-kind-to-support-vulnerable-kids-families Sources https://startupverband.de/research/deutscher-startup-monitor/ https://sigu-plattform.de/wp-content/uploads/250408_Ramboll_SIGU_Studie.pdf
Read full response