Alternative funding instruments for Servei Solidari
International Business Economics – Universitat Pompeu Fabra, Barcelona
The financial-social return gap, amongst many other issues, has caused the lack of funding of non-profit organizations like Servei Solidari, which runs a project named Espai Emprèn that provides advice in every step of starting up a business to those who do not have access to the traditional channels of financing. The purpose of this paper is to discuss whether two alternative funding instruments, a crowdfunding campaign and a membership scheme, are feasible in the context of Espai Emprèn and Servei Solidari respectively. On the one hand, some Espai Emprèn entrepreneurs and several crowdfunding platforms have been analysed in order to find the perfect match between a business plan supported by the organization and a platform from the market. From the crowdfunding types considered, crowdlending is the one that suits best these entrepreneurs’ needs, although some other in-between options should be thoroughly considered. Servei Solidari’s backup is essential in order to obtain favourable terms and conditions for these projects. On the other hand, before building the membership scheme, a prospect list has been drawn up in order to estimate the extent of the scheme and the prospect amount of money raised. With a 2 euro per month quota Servei Solidari will be able to not only cover its deficit but also give aid to a greater amount of people, while it also improves its communication and builds a loyal member base. Both have proved to be feasible instruments and numerous guidelines have been given in order to put these financing methods into practice.