Mikrofonden describes themselves Sweden’s largest and smallest social investor. Since their inception in 2010, they have invested approximately SEK 20 million in 135 different social companies, always with small micro-investments. They are a collaborative and risk-taking investor owned by its members, and their portfolio companies are primarily distributed across three areas: work integration, housing integration (cooperative co-building) and rural development.
A job to Go To
Approximately 60 percent of the investments are in work integration social enterprises (WISE) with the aim of including individuals who are outside the labor market. In Sweden, these are often organized as cooperatives or nonprofit organizations. The companies’ profits are reinvested in the business, enabling more and more people to transition from unemployment to a secure and permanent job situation.
One such example is the “Vägen ut” cooperative, which is a consortium of 13 WISEs, seven of which are funded by the Mikrofonden. The companies in “Vägen ut” operate in various industries such as hotel, restaurant, manufacturing, IT, recycling, dog daycare, and rehabilitation. The cooperative has developed a customized method for how to include and employ individuals who have difficulties entering the labor market, such as those with mental health issues, substance abuse issues, or newcomers who have not yet learned the language. This method is shared across the companies. In addition, the consortium operates as a franchise with shared solutions for communication, personnel administration, and financial management.
Investing In People
Mikrofonden’s core message is that they primarily invest in people. In 2022, 60 percent of the invested capital went to businesses with female applicants. Any business that positively contributes to the UN Sustainable Development Goals, has repayment capacity, and can be defined as a social enterprise can apply for micro loans.
The organization “Konsortiet Mikrofonden Sverige” is structured with Mikrofonden Sverige as a national hub and regionally independent Mikrofond in the form of economic associations.
Read more about the positive effects Mikrofonden has contributed to in 2024 here.