Companies oriented towards the common good, social entrepreneurs or social businesses, as the EU Commission calls them, use entrepreneurial means to help solve social problems and challenges. Despite their significant contribution, many of these companies find it difficult to access financing, grants or specific advice.

On September 13, 2023, the German Government approved the National Strategy for Social Innovations and Companies Oriented to the Common Good, which was developed by the Federal Ministry for Economic Affairs and Climate Protection (BMWK) in collaboration with the Federal Ministry of Education and Research (BMBF). The national strategy is intended to improve the legal and economic framework for companies and founders oriented towards the common good and to increase the recognition and impact of their sustainable and future-proof business models.

Companies oriented towards the common good will be strengthened in eleven specific areas of action, among others by promoting the start-up culture and access to finance, connecting social businsses with universities and research institutes, studying the impact of their business models, and developing standards for measuring and presenting impact .

While the desire to start a business is increasing again in cities, as figures from the Global Entrepreneurship Monitor Germany 2022 show, in rural areas few persons find the courage to start a business. But new business models with social innovations are urgently needed in rural areas, for example to develop new mobility stragies, new concepts for health care and care for the elder, or to introduce innovations for energy efficiency, climate protection and climate resilience in existing small and medium sized companies. Regional producers, regional marketing of food or inclusive jobs to address the shortage of skilled workers are also necessary, especially in rural areas.

Against this background, there are already a number of funding programs for social innovations and social entrepreneurs across the country. The BMWK’s React-with-Impact funding program started in 2023, which will finance free consultations, workshops and networking events for companies oriented towards the common good until December 2023 (see here).