Web giant Google has announced a donation of €20 million through its Google.org Social Innovation Fund. The aim is to support social entrepreneurs across Europe who are stuck in vulnerable communities.
According to a study released earlier this week by ChangemakerXchange and The Possibilists and co-funded by Google.org, only 1 in 5 young social entrepreneurs can live off their venture and over 60% have experienced burnout – and entrepreneurs from underserved communities experience these challenges more acutely. In addition, research from Euclid Network released in May shows that social enterprises face significant barriers to growing their business and scaling their impact. In particular, they lack access to capital and support from companies and governments.
Google’s contribution arrives in a perfect timing as, this week, the European Commission has announced a policy agenda to support social enterprises in its EU Action Plan on the Social Economy, and called on governments, funders and companies to do more to support the social economy.
This is not the first time that Google pledged support to entrepreneurs across Europe. Over the past ten years, more than €10 million in Google.org funding has been awarded to social enterprises to support charitable projects.
Paris-based social enterprise Chance (formerly YGeneration) knows first-hand how critical such support can be — now more than ever. In 2015 Google.org awarded them $200,000 to further their mission of using technology to help people from underserved communities access career guidance, digital coaching and the job market.
Seven years later — with the help of mentoring from Google volunteers and an additional $2 million in Google.org funding — they have helped 10,000 job seekers find roles and improve their careers, according to a recent joint blog post published by Rowan Barnett, Head of Google.org EMEA, and Adaire Fox Martin, VP Cloud EMEA at Google.
Google’s support also inspired additional funders to invest over €5 million, and will soon announce that they have attracted additional funding to reach even more people in French and English speaking countries across Europe.
The first grant will be a €1 million to Fund 05 in Slovenia to help catalyse the country’s nascent social entrepreneurship sector. In addition, Google will be giving a €7 million grant to INCO, a global organization supporting innovative companies that are the future leaders of the economy in 50 countries. The project will provide access to capital and support for entrepreneurs from underserved communities in the form of cash grants between €25,000 – €100,000 each to scale up their enterprises. INCO will also help individuals who are just starting out turn their idea into a business, with funding of €4.000 – €10.000 alongside mentoring and incubation services.