PiacTárs - Developing social enterprises for a sustainable and competitive social economy, Hungary
SOCIAL
In 2016, a consortium consisting of OFA Nonprofit Kft, IFKA Public Benefit Nonprofit Kft, and the Ministry of Finance launched Piac Társ (“MarketMate”). This pre-evaluation system allows social enterprises to apply for both non-refundable and refundable grants under the Hungarian European Commission’s Economic Development and Innovation Operational Programme (EDIOP). This programme is co-funded by the European Social Fund and the European Regional Development Fund.
The initial version of the programme (1.0) aimed to support social enterprises by providing targeted financial and non-financial assistance, including a pre-certification scheme to ensure investment readiness. Additionally, MarketMate provided specialised training on developing business plans, and designing marketable products and services for social enterprises. It has since been enhanced to include a comprehensive definition of social enterprises based on various criteria, while maintaining a focus on promoting employment.
With additional funding from Interreg Europe, IFKA released version 2.0 of MarketMate in 2020, which concluded in 2022. Based on the insights gained from the first iteration, version 2.0 was streamlined to provide a clearer understanding of social impact and to include an evaluation and certification system for enterprises that are not exclusively focused on employment.
The programme has three main goals:
Generate employment and social benefits through social enterprises.
Facilitate access to dedicated funding for social enterprises, and
Harmonise definitions of social impact according to established norms and standards.
This programme was co-designed and further developed in collaboration with stakeholders from social enterprises. Originally, the Ministry of Finance designed the EU-funded operational programme to enhance the employment potential, competitiveness, and sustainable market activity of social enterprises, as outlined in the Partnership for Hungary for the 2014-20 development period. The programme establishes clear criteria for defining a social enterprise and supports the development and financial sustainability of these enterprises, aiming to strengthen their role in job creation. In its second iteration, the Piac Társ programme promotes the development of a supportive ecosystem for all social enterprises, including the dissemination of a shared definition of social impact.
The original programme (version 1.0) is based on a pre-qualification and screening scheme that allows social enterprises to identify their strengths, weaknesses and potential gaps before applying for funding and tailored support. To obtain a pre-qualification certificate, social enterprises must comply with three criteria: 1) legal form and other administrative requirements, 2) a sustainable business plan and 3) measurable social impact.
Support measures include diverse business development and capacity-building services, with a focus on building social enterprise skills and improving access to finance. Examples include consultancy, mentoring, and organising networking events. Applicants and already supported social enterprises can access these consultancy services continuously through in-person meetings, email or telephone. Potential grantees who do not yet qualify for the funding scheme can also access advisory services.
Version 2.0 of the programme, developed between November 2019 and September 2020, includes a form for applicant organisations to provide data online. The consortium then conducts individual online interviews based on this data, providing assessment and feedback before proposing tailored development services. The structured questionnaire covers five horizontal areas and five key areas, enabling the assessment of social enterprises’ sustainability. Based on the information collected, the programme generates participation and qualification certificates that include structured feedback, benchmarking against other survey participants in each of the ten areas, and a summary of the social enterprise’s development potential. These certifications can also be used to apply for funding outside the MarketMate scheme and aim to harmonise and lend credibility to funding applications by social enterprises.
Lessons learned from the first iteration were applied to create a simpler certification system that extends its reach to social enterprises whose primary goal is not employment. Any social enterprise can now benefit from certification and support, provided they comply with social impact goals and key markers of a social enterprise. Stakeholders were consulted in the development and testing of the assessment framework and the online tool, as well as in the data collection process.
As of September 2020, 2 411 organisations registered 2 231 projects with MarketMate, 741 of which had been certified under the pre-evaluation system. By 2020, a total of EUR 70 million had been allocated to social enterprises in the form of non-refundable grants. A further EUR 33 million was awarded as refundable grants with the support of the Hungarian Development Bank and a consortium of commercial banks. In 2022, the project concluded with over 120 events organised, including information sessions, networking meetings, conferences, and knowledge-building workshops. Additionally, the team of expert consultants conducted nearly 3 500 individual consultations, offering tailored support in areas such as business plan development, finance, legal matters, marketing, and human resources.
Version 2.0 of the certification system also enables sector-level monitoring and the evidence-based development of policy instruments and dedicated support programmes for social enterprises, as well as the issuing of social enterprise certifications. By developing a general framework for social enterprises and social impact measurement, MarketMate aims to foster more targeted policy interventions that consider the various stages of business development, sectors and social impacts of social enterprises.
MarketMate is an example of the successful pairing of pre-assessment, refundable and non-refundable funding opportunities, tailored support and a certification scheme. Close coordination with stakeholders and efforts to disseminate a shared understanding of social impact measurement can help programmes like these create a more conducive ecosystem in the long term. The programme has also contributed to stronger harmonisation, dissemination, and increased the credibility of social enterprises. Finally, the iterative improvement of the programme illustrates a promising approach to policy innovation with feedback and revision loops that enhance the effectiveness and efficiency of such programmes.
PiacTárs. (n.d.). PiacTárs - Services. Retrieved from https://piactars.hu/en/services
PiacTárs. (2022). The "PiacTárs" project has been successfully implemented. Retrieved from https://piactars.hu/hirek/2022/11/sikeresen-megvalosult-a-piactars-projekt