Impact Policy Tracker Policy

REACT with impact



The "REACT with impact – Promoting Social Entrepreneurship" programme supported public-benefit small and medium-sized enterprises (SMEs) and social startups by offering tailored consulting services. The programme's primary objectives were to provide stability and professionalise these organisations, enhance their investment readiness, and foster networking and cooperation among SMEs. Consulting services covered a range of areas such as market analysis, product and service development, business planning, and technical expertise acquisition. These services were delivered by registered consulting firms and intermediaries like incubators, accelerators, technology and start-up centres, networks, chambers, and associations. As a spinoff of REACT with Impact and as part of Germany’s National Strategy for Social Innovations and Public Benefit Enterprises, the Ministry launched in 2024 a new funding programme to promote public benefit companies, building on its predecessor. The funding allocated is of around €110 million, the largest funding programme for public benefit companies in Germany to date.

Highlights

  • Capacity building provided straight from the horse’s mouth: the programme included bespoke consulting and support services delivered by organisations with network connections and direct expertise in supporting common good companies in the early growth phase, including incubators, accelerators, coworking spaces, business development agencies, chambers of commerce, technology and start-up centres and universities.

  • Target organisations’ spectrum: the programme targeted a wide array of public-benefit companies and startups that committed to social, cultural, or environmental missions, including charities, non-profits, social enterprises, cooperatives and businesses with a social purpose (following the European Commission's Social Business Initiative criteria).

Government’s Role:
Market Facilitator


Country:
Germany

Policy Type:
Capacity Building Programmes

Year: 2023

Responsible Institution:
Federal Ministry for Economic Affairs and Climate Action

Additional information:
Federal Ministry for Economic Affairs and Climate Action: REACT with impact Förderprogramm
Federal Ministry for Economic Affairs and Climate Action: Sustainable Impact – Promotion of Public Benefit Companies
European Social Fund for Germany: REACT with impact - Promoting social entrepreneurship (REACT-EU)

Capacity Building Programmes

What are capacity building programmes for impact-driven enterprises?

Capacity-building programmes aim to strengthen the skills, systems, and strategies of impact-driven enterprises so they can grow sustainably, deliver measurable social or environmental outcomes, and attract investment. These programmes typically provide targeted support such as business planning, financial management, impact measurement and management (IMM), legal and governance structuring, and market access. Support may come in the form of technical assistance, training, mentorship, grants, or facilitated access to networks of investors and advisors. Capacity-building programmes often involve partnerships between governments, private sector actors, and intermediary organisations (such as incubators or accelerators). These programmes aim to bridge the gap between promising impact-focused initiatives and the investment ecosystem, enabling them to scale their operations and increase their positive impact.