Estonia, Latvia, and Lithuania are quickly becoming hotspots for social entrepreneurship. These are businesses that aim to make a difference, tackling some of the region’s most pressing issues like climate change and educational gaps. While they’re gaining momentum with their cutting-edge solutions, many face a significant hurdle: they’re trying to grow without the necessary resources.

What’s the Scene Like?

Right now, over 600 social enterprises, startups, and non-profit organizations are creating impact-driven innovations across the Baltics. They’re making waves in areas like sustainable farming, digital inclusion, and renewable energy. Impressive, right? Absolutely! But despite their progress, many of these enterprises struggle to sustain their operations and move beyond the early stages.

Why? Because they lack access to diverse funding sources, specialized mentorship, and connections to bigger markets. Compared to similar businesses in Northern and Western Europe, social enterprises in the Baltics are missing out on comprehensive networks of resources and support. It’s like they’re playing a game without the right equipment, which makes it tough to reach their full potential and contribute more significantly to the region’s economy and society.

Building a Better Ecosystem

For social enterprises in the Baltics to thrive, they need a strong support system — a safety net that helps them grow and innovate. This means everyone needs to pitch in: startup support organizations, government institutions, private investors, and the social enterprises themselves.

The available support structures are fragmented at the current stage. There’s a lack of coordinated efforts and shared goals, which means missed opportunities. But there’s hope on the horizon. Initiatives like accelerator programs, hackathons, and cross-border partnerships are changing the current landscape. For example, over the past two years, the IBESI project financed by the European Commission has implemented an Impact Hackathon and an Impact Valley Accelerator to support the growth of social enterprises in the Baltic region. In one case, the Impact Valley Accelerator helped a team refine the business model to better align with sustainable development goals, leading to increased investor interest and market traction for the social enterprise.

Even though projects like IBESI are paving the way, it is not a systemically funded structure that could continuously nurture the ecosystem. Projects are excellent for piloting formats, demonstrating what works and what doesn’t, but they alone cannot bring about sustained change. Startup support organizations can incorporate social impact considerations into their programs more and provide tailored support for social enterprises. The NULA incubator’s Batch #9, for instance, successfully nurtures innovative ideas addressing acute societal problems in education, public health, and family welfare. Governments can help by cutting red tape and creating favourable policies that encourage investment in social enterprises. Private investors can play a huge role by recognizing the double benefit of these businesses — not only can they get a financial return, but they also offer solutions to critical societal problems.

What’s Next?

The Baltic States are at a tipping point. It’s clear that good intentions alone aren’t enough to make the Baltics leaders in social innovation. The Baltics should commit to building a support system that matches the drive of its talent. If everyone steps up — support organizations focus on impact, governments streamline policies, investors open their minds (and wallets), and social enterprises keep pushing forward — the region has the opportunity to set a new standard for integrating profit with purpose. Now’s the time to get serious and give these businesses the backing they deserve. By doing so, the Baltics can transform into a social entrepreneurship powerhouse, driving positive change not just at home but around the world.

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This article is part of the "Integrated Baltic Ecosystem for Social Innovation" (IBESI) project, Funded by the European Union. Views and opinions expressed are, however, those of the authors only and do not necessarily reflect those of the European Union or the European Innovation Council and SMEs Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them.