The (Stair)case for Mixed Financial Instruments

Abstract

The social investment¹ capital market hardly exists in either Central Europe or Latin America. There are very few financing instruments available for social enterprises to fund their start-up, consolidation, and growth. Grants have been the only source of funding for decades, and even grants have grown scarce, as private foreign donors have disappeared and local philanthropic sources have not stepped in to take their place. Social enterprises in emerging market countries remain dependent on funds from European Union (EU) and other foreign governments, which come in a variety of forms and support the enterprises at each stage of their development.