The 5 enterprises are Ctalents, FladderFarm mobile, Refugee Team, Samen Slim Zorgen Thuis and Stichting Sarban de Toekomst.
This was announced during the launch of the fund on Thursday, 21 February 2019 at the Willem II venue in ‘s-Hertogenbosch. The province of Noord-Brabant is the first branch of Dutch government with an Outcomes Fund. This is a fund in which financiers can earn back their investment if they contribute to achieving social outcomes. As a representative, Henri Swinkels says; 'An increasing number of private partners are looking for ways to increase their impact. They are therefore also investing in social impact. For them, this is about more than simply return on investment. It is a development that we are following with interest and to which we wish to contribute through this fund.'
A growing number of social enterprises are contributing to the movement of the purpose economy: an economy in which the creation of social value and ethical business practices has the highest priority. This happens with a financially profitable enterprise in which solutions are found at the intersection of public and private duties. 'The basis of our fund is outcome-based financing,' Swinkels continues. 'The starting point is a social issue in which not only financial success or savings are valued, but also societal impact and sustainable outcomes. The fund only pays out if the outcomes are actually achieved. No fewer than 82 social enterprises have signed up for the pilot, five of which will receive intensive support over the coming period. A less intensive route is available for the other enterprises.'
The BOF operates based on social impact bond (SIB) financing model of public/private outcome-based financing. A SIB is a contract through which private investors invest in a social enterprise initiative such as supporting refugee status holders to ensure they find work. In this way, they help to increase the societal impact. Once the outcomes have been achieved, the government pays back the investors with interest.
This is emphatically not about privatising social issues but about a public/private partnership in which money is used to achieve societal outcomes for people in a vulnerable position. In this partnership, the province stays in control by determining the goals to be achieved, the target group to be reached and the way in which outcomes are measured. This always happens in consultation and cooperation with the other parties.
One million euros have been set aside for the Brabant pilot.