The Spanish Congress has approved the Comprehensive Law to Promote the Social Economy (LIIES), a significant step for the sector, though without incorporating a technical improvement proposal put forward by certain actors in the social impact ecosystem. An amendment aimed at facilitating minority participation of impact capital in Work Integration Social Enterprises (WISEs), while preserving their governance, was not included in the final text.
This decision deepens the financing access problem, a challenge that WISEs had already raised on multiple occasions. By excluding the amendment, an additional avenue has been closed for these enterprises to access capital instruments aligned with their social purpose and with sustainable positive impact strategies.
Social economy, impact and governance
The social economy and impact economy sectors are characterised by generating social and territorial value. The diversity of structures within this sector requires financial innovation, with capital instruments adapted to different business models, from cooperatives and associations to work integration enterprises.
In this regard, we believe that access to patient capital oriented towards social impact is essential to finance the consolidation and expansion of projects with sustainable and measurable outcomes. The approved law, without the amendment, limits these possibilities, placing work integration enterprises at a disadvantage compared to other social economy entities that can already channel this type of financing.
SpainNAB has been actively engaged in regulatory advocacy, seeking to better align public policies with social impact financial instruments. Together with other actors, we submitted an amendment that, starting from respect and protection of the special governance of work integration enterprises and guaranteeing effective control by the promoting entities, sought to open the possibility of participation by public and private capital aligned with their social purpose and socio-labour inclusion objectives.
This would have allowed these enterprises to access financial resources capable of driving their growth, consolidation and expansion of social impact, without compromising their mission or management model.
The experience of impact financing shows that financial innovation can be key to adapting capital to the different structures of the social economy. Adjusting investment instruments in a way that respects the governance and mission of each entity makes it possible to multiply the effectiveness of impact capital, generating measurable benefits in the local communities and territories where these enterprises operate.
SpainNAB’s commitment to an inclusive ecosystem
SpainNAB reaffirms its commitment to developing solutions that facilitate the connection between impact capital and the social economy. We will continue working in dialogue with institutions and sector actors, promoting regulatory and financial frameworks that allow the full potential of each instrument and each legal form to be harnessed in building a fairer, more inclusive and sustainable society.
