About 20 years ago, very little or almost nothing was said in Portugal about social innovation, impact, sustainability, and many other terminologies that are common and current today, both in corporate jargon and in the daily lives of ordinary citizens.

The reason why this evolution has taken place over the last 20 years can be said to be due to the perfect combination of several factors that have accelerated the creation of a single ecosystem – that is, a system of interconnected agents and events that have been organized in the same direction or common goal – conducive to the development and proliferation of innovation initiatives and social and environmental transformation,  progressively more effective, and with sustainable economic models. Some of these factors were as follows:

The development of relevant scientific research, and tools that systematized the practice of many years, enabling the standardization of concepts, and the dissemination of methodologies that generate impact;

 A growing awareness, on the part of academics, managers, governments and civil society, of the importance of introducing an economic paradigm that takes into account not only profit maximization, but that, more broadly, is concerned with the generation of value, which necessarily implies taking into account the interests of all parties involved in economic operations;

Some events and initiatives that accelerate the urgent imperative of sustainability and impact, such as the financial crises that the West went through at the beginning of the 21st century. XXI, or the publication, in 2015, by the UN, of the matrix of the Sustainable Development Goals (SDGs), which created a unifying tool for the efforts of all agents of the Economy.

• An evolution of environments, systems and agents, to which Portugal was not only no stranger but, within the European context, was perhaps one of the most innovative nations, while contributing to the acceleration of the level of maturity of the ecosystem that has been witnessed in recent years, and which today allows us to have more and more hope in the possibility of implementing this paradigm shift on a larger scale.

 

• Focusing on Social Innovation – the final result of positive transformations generated through processes of design and implementation of effective and efficient solutions, in mitigating some of the deepest causes, of the main social and environmental problems that society currently faces – Portugal has given a lot to Europe, both in terms of innovation and knowledge.

 

• From 2008 to date, the movement linked to the creation of innovative and differentiating solutions that, in a sustainable way, solve social and environmental problems through entrepreneurship – the Social Entrepreneurship movement – has grown in Portugal. The first space for dissemination and learning of the methodologies and processes of innovation and social entrepreneurship was conceived, designed and implemented by the Institute of Social Entrepreneurship (IES) which, even today, many thousands of alumni later, continues to train people from all over the country, all ages and in all sectors of society;

 

• With the creation of the mission structure of Portugal Social Innovation, in 2014, a public initiative created to promote Innovation and Social Entrepreneurship in Portugal, Portugal became the most innovative country in Europe, in this matter, being the first in which a structure like this was created, with an experimental character, mobilizing European funds to support innovative projects that aim to obtain benefits for society,  through four financing instruments. To date, 623 social innovation projects have been supported, with an allocation of 90 million euros, from European funds, and a mobilization of social investment in the order of 42 million euros. Even today, it remains a European reference, being frequently consulted by other countries that want to implement effective strategies in the area of social innovation, such as Germany.

 

•  Also in the Academy, many products related to the area of Innovation and Social Entrepreneurship have been progressively included, both in degree programs, in the various teaching cycles, and in executive programs, with Católica-Lisbon being one of the main players in this matter, both with the educational offer that, since 2017, it has offered, to undergraduate, master's and executive students,  or with the creation, in 2022, of the Center that I have the honor of directing – the Yunus Social Innovation Center.

We are now at a crucial moment for the evolution of this ecosystem.

Many governments – and, in the case of Europe, several European Union bodies – consider social innovation to be central, but many do not have defined strategies, or clear policies.

 

Many social innovators launched their projects, with a frankly innovative model, but without the ability to maintain their sustainability, or to gain the scale necessary for their impact.

There is a proven growth in the universe of social investors, but there is still a lack of consistency and long-term focus in many of them – it is urgent that they realize that, no matter how many metrics and impact analyses exist, many of these projects, with enormous potential, will hardly be able to make financial reports at the level of market initiatives, either due to the very nature of the activities (and results) developed,  or for the cost and qualification that this represents. In addition, there can be no security, which is fundamental for growth, without some degree of certainty as to the level of commitment of these investors to the projects invested. In other words, it is also necessary to work more on the maturity of the investors themselves.

Finally, with regard to companies, in my opinion, there are three major key steps missing, so that they can assume themselves as the 5th element (which, honestly, I really think they are) of this formula, which we need so much to achieve this vision that we advocate of a world where it is possible to do good business, while solving problems of its stakeholders,  and the planet, which we need to live:

When it comes to the investment they make in social innovation organizations and projects – realize that it is an investment, not corporate social responsibility. Which implies realizing that it is investment that is needed – not charity. This confusion still exists in many situations;

Be able to understand the impact that social innovation can have on the business – how the incorporation of social innovation processes, methodologies, strategies, can, when applied to product development, production, logistics and distribution, people management, marketing and communication, add value. Value that has an economic translation, because it implies greater productivity, greater loyalty, greater involvement, more satisfied and proud customers with the brands they consume;

• Finally, to be able to implement these processes effectively and efficiently, leading them to grow in social innovation (and, obviously, with this, in their not exclusively financial performance, although with a direct impact on it) and, with this gain in maturity, to be able to go beyond compliance objectives, leading, by example, in this new world, which we foresee and advocate.

 

It is with these goals that I work every day, with a team that understands the need for all this. There are no right and wrong paths. There are paths that lead to different sides. And they all need time to be validated. Time, persistence and a lot of confidence.