Michał Radziwiłł, Manager at Inpulse Investment discussed at the Enterprising for Tomorrow 2024 conference the importance of financial instruments in supporting the social economy, particularly focusing on the role of microfinance and venture capital in financing social enterprises.

Discussion Highlights

1. Role of Microfinance:
   • Michał Radziwiłł highlighted the significance of microfinance in the social economy. He emphasizes that microfinance, though not directly part of the social economy, plays a crucial role in providing financial support to social enterprises.
2. Simplified Financial Products:
   • The speaker stresses the need for simple financial products that are easily understandable for social entrepreneurs who are just starting. He suggested that high-level financial engineering might be a future step, but currently, basic loan products are essential.
3. Government Support and Risk Sharing:
   • Michał Radziwiłł mentioned the importance of government programs that support the social economy. These programs not only provide a legal framework but also offer financial backing that helps mitigate the risks associated with lending to social enterprises.
4. Social Venture Capital:
   • The manager of Inpulse Investment talked about the social venture capital fund he managed in Poland. This fund was a pilot program aimed at exploring how social enterprises could be financed through equity investments. Despite being small in scale, such funds can reach areas that larger funds might find difficult to access.

“You need to have simple products. High-level financial engineering might be the next step, but for now, we need products that social entrepreneurs starting their journey can easily understand.”