building bridges across the mediterranean: the case...

Building Bridges Across the Mediterranean: the case of Entrepreneurs for Social Change TURIN ISLAMIC ECONOMIC FORUM 2014 Torino - Tuesday, 18th November, 2014 Massimo Lapucci Secretary General, Fondazione CRT

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The Fondazione CRT One of the shareholders of Unicredit Bank, the Fondazione CRT was formed at the end of 1991, as part of the transformation of the Italian banking sector. It is a private, non profit organization with a social purpose.

The areas of intervention

The Fondazione CRT participates actively in European and International Institutions

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Note di presentazione

If the mission of the Foundation is naturally very linked to the Piedmont and Valle D’Aosta territories in recent years CRT foundation has widened its international involement in the conviction that Development is created if exchanges of knowledge and skills are made and also through the importation of best practice, through which ideas, projects and economic resources can be attracted to our local territory. This is the reasoning behind the decision to actively participate in main European Philanthropic networks such as the European Foundation Centre and the European Venture Philanthropy Association EVPA . Established in 2004, the association is a unique network which promotes venture philanthropy. Currently the association has over 150 members from 23 countries. EFC, established in 1989 is an international membership association of over 230 members mainly consisting of foundations. It’s mission: to strengthen the philanthropic sector. We also are members of GIIN - Global Impact Investing Network, a not-for-profit organization dedicated to increasing the scale and effectiveness of impact investing. And we collaborate with the Rockefeller Philanthropy Advisors on theTHEORY OF THE FOUNDATION INITIATIVE, a three-year program of research, publishing and convening to explore how foundations now define and achieve their purpose as institutions.The Rockefeller Philanthropy Advisors’mission is to help donors create thoughtful, effective philanthropy throughout the world. This is also the reason behind our decision to partner with the United Nations Alliance of Civilizations and with the Italian Ministry of Foreign Affairs in the development of the Entrepreneurs for Social Change project.

The three phases of the Foundation’s operational approaches

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Over the course of twenty years, Fondazione CRT has diversified and perfected its way of operating, so as to better meet the needs of the community. At the beginning of its work in the Nineties, it funded large and small projects that originated from its area of intervention. In the years 2000s, it started developing its own projects. In recent years, Fondazione CRT has also embraced venture philanthropy and impact investment approaches, carrying out true and real philanthropic investment aimed at building stronger social purpose organizations by providing them with both financial and non-financial support in order to increase their societal impact. These approaches include both the use of social investment and grants and looks particularly favorably to social entrepreneurship.

Islamic finance has developed significantly over the years to become a noticeable part of the international financial system.

The value of Islamic financial assets worldwide increased from USD 150 billion in the mid-1990s to an estimated USD 1.6 trillion by end-2012.

Studies show that even in Western countries, Islamic finance is playing an increasing role. France, Spain, but also Italy are increasingly part of this phenomenon.

Islamic Finance and Social Impact Investing Joining the Dots - Part 1

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Islamic finance has developed significantly over the years to become a noticeable part of the international financial system. The value of Islamic financial assets worldwide increased from USD 150 billion in the mid-1990s to an estimated USD 1.6 trillion by end-2012 Studies show that even in Western countries, Islamic finance is playing an increasing role: government incentives and the measures introduced to create an environment conducive to a growing and thriving Islamic finance industry; the increased emphasis on alternative financial solutions following the financial crisis; the substantial appetite for attracting liquidity from emerging markets. France, Spain, but also Italy are increasingly part of this phenomenon. source: Occasional Paper, Islamic Finance In Europe, European Central Bank (2013)

Islamic Finance and Social Impact Investing Joining the Dots – Part 2

In views of Harding (2006), the important role of social entrepreneurship is that it contributes to an economy by providing an alternative business model for enterprises to trade commercially in an environmentally and socially sustainable way, and it also provides an alternative delivery system for public services.

As mentioned by Abdullah and Hoetoro (2011) the goals of Islam are to lead a daily life with a balance of materialistic and spiritualistic aspects, the same can also be said for the world of business in which a balance is sought between social and economic factors.

The implementation of social entrepreneurship within the Muslim world therefore has great potential for growth.

The possibility of following Islamic giving principles in an effective, transparent and efficient way (aligning with the principles of impact investing), and is still an important opportunity to strengthen further.

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In views of Harding (2006), the important role of social entrepreneurship is that it contributes to an economy by providing an alternative business model for enterprises to trade commercially in an environmentally and socially sustainable way, and it also provides an alternative delivery system for public services. As mentioned by Abdullah and Hoetoro (2011) the goals of Islam are to lead a daily life with a balance of materialistic and spiritualistic aspects, the same can also be said for the world of business in which a balance is sought between social and economic factors. The implementation of social entrepreneurship within the Muslim world therefore has great potential for growth. The possibility of following Islamic giving principles in an effective, transparent and efficient way (as dictated by the principles of impact investing) should be supported.

Development is created through the exchange of knowledge and skills, and as part of this the integration of young people is particularly relevant. In light of this, together with the United Nations Alliance of Civilizations and the Italian Ministry of Foreign Affairs, the idea was born of building a project to support social entrepreneurs from both sides of the Mediterranean and to promote intercultural dialogue.

Entrepreneurs for Social Change: Connecting Change-makers from different sides of the world

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Historically and by statute the Fondazione CRT focuses on Piemonte and Valle d’Aosta, however with the globalization of goods, services and people, it has become clear that there are many ways to support a local territory. Entrepreneurs for Social Change unites entrepreneurs who follow the principles of Zakat and Awqaf with other entrepreneurs and social impact experts. zakat is a way to redistribute the wealth, thus defining a charity-based economy with a particular interest in the poor and the dispossessed Muslims, Zakat is considered more than taxation. Awqaf an inalienable religious endowment in Islamic law, typically donating a building or plot of land or even cash for Muslim religious or charitable purposes

The Issue

Migration Facts

19.372 Migrants died in the Mediterranean Sea in the last 25 years, from 1988 to 2013.

3.637 1/5 of them died in the last three years, from 2011 to 2013.

Cultural Values and Challenges

Youth Unemployment %

3 Major

Religions

2 Major

Ongoing Conflicts

~ 100 Spoken

Languages

4 Major

Ancient Civilizations

1 Sea

0

10

20

30

40

50

60

TunisiaEgyptPortugalItalyPalestineCroatiaSpain

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Aspirations for dignity, democracy, human rights, freedom, as well as access to political, social and economic opportunities to improve lives and countries are very much defining the identity and reality of today’s generation of young leaders. However, the Euro-Mediterranean region is the epicentre of a crisis that affects youth at all latitudes and from most countries.

Entrepreneurs for Social Change The key principles: support social entrepreneurs means of development tool for cohesion Mediterranean Partnership

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Now we come to the project. Here are the five elements that characterize it. 1. To Support social entrepreneurship 2. Seen as a vehicle for development in terms of creating jobs, and economic development 3. But even as an instrument of cohesion and respect among people of different cultures and religions. It 's attention to interculturality is a distinctive element of this project. 4. Where? in the Mediterranean 5. For us it is obviously very important when dealing with these issues to partner with an agency of the United Nations, as well as the Ministry of Foreign Affairs. The Alliance, which reports directly to the Secretariat General of the UN, was founded in 2005 with the goal of reducing tensions between the West and the Islamic World, fostering intercultural dialogue and promote cultural activities of international scope.

The Vision

Economic Issues

Social and Cultural Issues

Regular Enterprise

Social Enterprise → E4SC

E4SC aims to empower a new generation of youth to build bridges across the socio economic and cultural divides within their own countries as well as across borders in the Euro-Med region.

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Both public and private institutions tend to address economic and social and cultural issues as separate domains. All enterprises deal with a mix of social, cultural and economic issues at once, although no specific focus is necessarily dedicated to understand how improving one of those parameters might influence the others. Social enterprises consider their social and cultural capital as fundamental assets to be related with their economic one. This becomes the basis to create successful enterprises.

The Project

Training Pre-Training

Project Idea

Business Plan

Start-Up

Project Phases

Mentoring

Alumni

Young Aspiring Entrepreneurs

Fully Fledged Entrepreneurs

Life Cycle of the Project

Uniqueness International Media Attention Connection with International Organisations Join a Network of Influence

Training Programme Content Skills and empowerment, Cultural cohesion, Motivation Radicalization Prevention, Fundraising, Economic confidence

Opportunities Intercultural dialogue and social cohesion Responses to a region in crisis Flexible business model with local solutions to international issues

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�ENTREPRENEURS FOR SOCIAL CHANGE aims at providing skills, confidence and opportunity to create social enterprises that directly benefit, support and help to reduce socio economic and cultural divide while also acting to reduce violent tensions within their own countries as well as across borders. The trainers are international experts in social business, fundraising, marketing motivation, leadership and intercultural dialogue. During the course the trainers are not restricted to their own subjects but continuously interact between each other to integrate and adapt the lessons to the needs of the group and individual participants. After the training, each participant is assigned a Mentor, according to the individual needs of the participant Particular attention is paid at putting the young social entrepreneurs in contact with funding opportunities in their own countries. For the second edition, the Fondazione Sviluppo e Crescita will support the most interesting projects through impact investing those most able to generate social impact and to be economically sustainable.

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In an area of the world that sees 30, 40 or 50% youth unemployment, in a sea that has witnessed the doubling mortality of those who tried to emigrate to better shores. The young social entrepeneurs who participate in E4SC are attempting to build a common future on the shores of Mare Nostrum. These are the stories of people who believe in change and who build it through their business ideas, creating jobs and at the same time laying the foundations for a more just, more attentive, multicultural society. From the Albanian researcher working on a radio rom, to the Egyptian entrepeneur who networks the artisans of different religious communities on the banks of the Nile, from the theatrical entrepeneur who finances productions recited by Israli-Palestinian companies, to the entrepeneur from Beirut who connects the Maronites, Orthodox, Shiite and Sunni while the Syrian war rages at their doorstep.

Main Challenges of Entrepreneurs for Social Change

The current main challenges are related to the following questions:

How do we support social entrepreneurs coming from different backgrounds?

How do we better integrate Islamic Finance with Social Entrepreneurship and Impact Investing?

How do we attract investors who speak the same language, share the same culture and can bridge values and customs from different sides of the Mediterranean?

Entrepreneurs for Social Change: A CALL FOR PARTNERSHIP Entrepreneurs for Social Change is a

program with huge potential

Fondazione CRT, together with its current high level partners, is looking to open to new partners: to strengthen the training phase

to increase the support for the social

enterprises

to increase social impact in the most efficient way

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Fondazione CRT, together with its current high level partners, is looking to open to new partners: to strengthen the training phase (the program could be enriched with a module on Islamic financing, as could the number of participants be increased) to increase the support for the social enterprises (through investments that follow the most efficient and transparent approaches of impact investing and venture philanthropy.) Use impact investing as incubators and supporters as a part of this initiative, (as with Fondazione Svillupo e Crescita) We believe that through working in partnership better and longer lasting results can be achieved over time.

Fondazione Cassa di Risparmio di Torino Via XX Settembre, 31 – 10121 Torino

www.fondazionecrt.it

Thank you!

The Case of Sameh Awad

Sameh Awad is an Egyptian entrepreneur, a participant of the first edition of the Entrepreneurs for Social Change project in 2013. His idea was to create Madad, the first crowd-funding platform in Egypt and the Middle East that help donors find a sustainable development project suitable to their interests, and to help Egyptian NGO’s raise funds.

Thanks to the support received through E4SC, in June 2014, Madad was launched online.

Madad showcases sustainable projects in the field of poverty, education, health, environment, women and children, it offers a means to contribute financially to these projects undertaken in Egypt and it also provides reliable and transparent monitoring of each endorsed project.

In a nutshell, Madad applies the principles of Islamic giving in a modern world.

Sameh’s Current Challenges Are: How to scale internationally? How to connect with more traditional Islamic givers?

The Case of Giacomo Crescenzi

Giacomo Crescenzi is an Italian entrepreneur living in Cairo, Egypt, a participant of the second edition of Entrepreneurs for Social Change in 2014. Together with an Egyptian partner, Rehab ElDalil, he founded Al Qomrah, whose mission is to Empower Young Egyptian Artists and Professionals (YEAP) to raise the ethical and professional standards of the cultural sector.

AlQomrah is a creative agency providing exclusive services in photography, videography and design.

Together with the mentors of E4SC, AlQomrah is developing plans to fulfill the marketing needs of clients requesting compelling visual products to outreach and retain both old and new audiences in the 2.0 communication era.

Again, Al Qomrah, tries to bridge Islamic giving with the needs and creativity of artists and cultural producers, making available his own experience of the Western world.

Giacomo’s Current Challenges Are the Same of Sameh: How to scale internationally? How to connect with more traditional Islamic givers?

Torino, ponte sul Mediterraneo

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Aside from them ther are others like Emiliana Mellone, Neapolitan who has a social enterprise with 13,000 followers, needless to say, the practice of the 3Rs Reuse, Reduce, Recycle like Or Pardo 26, Israelian, who wants to create a meeting place for the gay community, in response to the high level of suicide in this group. In an area of the world that sees the 30, 40 or 50% of unemployed young people, in a sea which has seen the number of deaths double of those who tried to emigrate to the better shores, the young social entrepreneurs who participate in E4SC are trying to open doors to the future. These are the stories of young people who believe in change and that build it through their business ideas, creating jobs and at the same time laying the foundations for a more just, more careful, and multicultural society. This is the kind of opportunity that we are trying to offer, this is the bridge we are trying to build. Turin, in the days of training turns into a "hub" to accompany the growth of new ideas in the Mediterranean. We do not do this alone. We believe that the joint work of different subjects, as in the case of E4Sc (which sees a government, an international organization, and a non-profit organization united together) leads to improved results, to more success.

building bridges across the mediterranean: the case...

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