Financial support to social business: The EU-Supported COVID-19 Relief Fund provided grants to 35 local companies 35 Armenian social enterprises received financial support in the amount of 186 million AMD from the EU-Supported COVID-19 Relief Fund.
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The funds received by social businesses will be used to overcome the economic consequences of the coronavirus. On September 11, the official grant award ceremony took place at Impact Hub Yerevan, during which the supported enterprises presented their products and services within the framework of the exhibition. The event was also attended by Head of the European Union Delegation to Armenia, Ambassador Andrea Wiktorin.
The EU-Supported COVID-19 Relief Fund was launched by Impact Hub Yerevan as part of the Collaborate for Impact regional project. As a result of the competition, various business initiatives operating in all regions of Armenia were selected, the unifier of which is the social component of the activity.
“The European Union has been investing in the social entrepreneurship sector in Armenia for several years and we felt the need for this kind of support soon after the pandemic began. Impact-driven businesses have a great potential and role to play in building back better the economy and for creating opportunities for growth and jobs. Overall, this project is expected to be a big boost to the sector and we look forward to seeing how it takes shape over the coming years,” said Head of the European Union Delegation to Armenia, Ambassador Andrea Wiktorin.
After the welcoming speeches, the founders of the companies that received the grant were given certificates symbolizing the received financial support. The target of the program is social entrepreneurship.
By providing support to the socially-oriented business community, the program not only supports regional small and medium-sized businesses but also provides stability to the social problem-solving processes undertaken by the founders of those enterprises.
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One of the main goals of creating social enterprises is the financial independence of social initiatives. However, this emerging sector in Armenia continues to depend on the support of international donors, which carries risks in terms of both economic and social impact. The measures envisaged by the program are also aimed at solving this problem.
"We believe that social enterprises working only with grants cannot have a sustainable business and consequently cannot have a significant social impact. That is why there are plans to implement capacity-building processes of local social businesses in the next stages of the program, giving them the opportunity to attract investments and ensure their financial independence and stability,” said Ani Baboomian, Executive Director of Impact Hub Yerevan.
Emphasizing the importance of working with investors and realizing the specifics of the sector, the program will also create a social entrepreneurship development investment fund, creating an infrastructure that will stimulate investment flows in this sector and become a link between social business and potential investors.
