The social entrepreneurs selected for Momentum Project present their business development plans to potential investors at the "Social Investment Day"
After a training period, the social entrepreneur schemes selected by Momentum Project present their business development plans in a bid to raise finance and continue growing.
- (1888PressRelease) October 13, 2011 - They have met this week at BBVA’s La Moraleja Campus and today have presented their business development projects to potential investors at the "Social Investment Day." BBVA intends to set up an investment vehicle before the end of the year, selecting Momentum’s most promising social enterprises for funding through long-term (8 years), subsidized participating loans.
The goal of the entrepreneur schemes is to double the number of beneficiaries -504 at present- by 2014, requiring .9 million of funding
83% of the workers of the social companies participating in the ESADE and BBVA initiative, with the collaboration of the Foundation PwC, are people at risk of social exclusion
BBVA will lead an investment vehicle that will allow other investors to take part in the financing of Momentum’s most promising social enterprises
Guests include current BBVA private banking customers, businessmen and other institutional investors
Attending the ceremony, in addition to representatives of the schemes and investors, were BBVA President & COO Ángel Cano, BBVA Spain and Portugal Director Juan Asúa; BBVA Head of Communication and Branding Gregorio Panadero; ESADE Director of University Programs Alfred Vernis; and BBVA Director of Corporate Responsibility Antoni Ballabriga.
The social entrepreneurs not only work to boost profits, but they also want to leave their mark on society. This was the main driver behind ESADE’s and BBVA’s decision to start up an initiative to promote social entrepreneurship in Spain. In spite of ongoing financing crisis, the 10 schemes taking part in this project increased revenue by 15% in 2010.
Momentum Project wants to have a greater direct impact on society and to create jobs. In this vein, more than 460 people entered the job market last year through the program’s social enterprises, with either the companies themselves offering jobs or helping them find work at other similar organizations. Of those working in the social entrepreneur schemes, 83% are at a risk of social exclusion, as immigrants with a precarious status, battered women or people with a physical or mental impairment.
Make the world a better place. Why not?
The number of jobs given to people at risk of social exclusion increased by 12% in 2010. For the Director of University Programs of ESADE, Alfred Vernis, this means that business can be created in a different way: "These companies are creating quality employment for people who can barely make ends meet.”
Momentum Project offers people the chance to access a positive working environment predicated on training and preparing workers to face their daily challenges. That’s why 77% of the social action’s beneficiaries believe their jobs and companies are crucial to their personal rehabilitation and stability.
For the Director of Corporate Responsibility at BBVA, Antoni Ballabriga, it is important to foster initiatives likes this one: "Not only do we intend to support project training and orientation, but we also want to open up investment opportunities so that these social entrepreneur schemes can grow scale their businesses."
In this respect, aware of the new needs for private investment, BBVA Private Banking is promoting a vehicle that will allow for impact investing that combines economic sustainability and social value creation. It will start this vehicle before the end of the year, selecting the Momentum’s most promising enterprises and financing them through long-term (8 years), subsidized participating loans.
Collective impact
Networking is a key ingredient to the success of a social entrepreneur scheme. Some of Momentum Project’s schemes already work on average with another 59 institutions. An example is Roba Amiga (a cooperative set up to collect used clothing), which brings together five insertion companies in a second-tier cooperative. Similarly, Catering Solidario (a company that employs battered women) and Sostre Cívic (an institution that provides access to homes) are working together to build housing co-ops in Seville for women suffering from domestic violence.
A large number of people have already shown interest in this housing alternative. At the same time, visits by schools and public administrations to learn about institutions such as DAU (manufacturing pharmaceutical laboratory) and Teixidors (fabric cooperative) have increased.
Business development project
With the ESADE training phase over and the business plan designed, the entrepreneurs met this week at the BBVA La Moraleja Campus in Madrid to present their business development plans to companies and potential investors at the "Social Investment Day." In a next phase, students of the businesses school will help roll out the strategy over a period fo 10 weeks at the social enterprise together with their mentors.
The goal of the Momentum Project entrepreneur schemes is to double the number of beneficiaries -504 at present 504- by 2014 and to expand their business. For this, they need to raise €3.9 million of financing.
The financing needs of each project relate mainly to the following growth strategies:
Catering Solidario: to give job opportunities over the next five years to 300 women who have suffered abuse. The aim is to build a warehouse with an industrial kitchen, expand the team and undertake a market strategy targeting public institutions.
DAU: to open a new business line: primary packaging of pharmaceutical products; i.e. blistering and unit-dose packaging, and in cosmetics; filling and sealing cosmetic tubes.
Gran Vallés Asistencial: to solidify its status as the leading company in its field in Sabadell and replicate the business model in other towns of Vallés (Occidental and Oriental), opening up a new headquarters in the city of Granollers.
Hornos Lamastelle: to undertake initiatives aimed at improving communication, and distributing and boosting production capacity.
La Tavella: to upgrade and expand infrastructure in order to raise production and to implement a computerized management system.
Moltacte: to strengthen the existing stores and spread the store chain by opening two new sales outlets in 2012.
Roba Amiga: to set up a new textile waste treatment plant around Barcelona with the aim of increasing the number of jobs through social insertion.
Sostre Cívic: to carry out refurbishment projects in the short-to-medium term and a new construction project. Half will go to integrate groups at the risk of social exclusion.
Teixidors: to achieve €1.2 million of revenue in 2015, mainly by expanding abroad.
About Momentum Project
Momentum Project is a pioneering initiative in Spain launched by ESADE and BBVA, with collaboration by the PwC Foundation, to help the most promising social entrepreneurships consolidate, grow and scale their impact. The purpose of the project is to help entrepreneurs shore up their existing projects to ensure their viability, offering them a comprehensive training, advisory and support program that can enhance their project and increase their social and economic impact. It also aims to encourage cooperation and knowledge sharing among entrepreneurs, who are advised by a team of mentors comprising MBA graduates from ESADE, BBVA directors and directors of other participating companies, such as Seguros DKY and Inditex.
For further information: mometum-project.org/en/
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