Investment Capital

RISE invest & Action Invest funds

The purpose of the RISEinvest and ActionInvest is to offer investment capital to facilitate social enterprising start- and scale-up.

  1. Social entrepreneurs are offered loans with a 10 % annual interest.
  2. Each project starts small and scales firmly.
    The first loan is usually around € 1,000, and a second twice the amount. Usually, the total loan for each project is € 15,000.
  3. The partnership agreement is based on mile-stones, after each milestone has been achieved, new loans are made possible. Moreover, further loans are only granted if the business is well managed according to periodical bank accounts statements, programme achievement surveys, as well as auditing reports.
  4. The funds are usually paid back within a period of one to three years.
    After maximum three years the company is expected to be self sustained.
  5.  The loans are always combined with coaching targeting evaluation planning, impact survey management, branding & public relations and accounting as well as annual external auditing. The interest from the programme is used to co-fund programme coaching and auditing.
    The loan-takers programmes are also always benefitting accountability management package designed by HR&S.
  6. The loans are given out as “soft loan” and the HR&S definition of soft-loans is that legal actions will not be taken even if funds are not paid back according to the agreement.
  7. Each new loan is prepared benefitting from an ambitious loan-taker agreement, where the special conditions of the loan-taker are paid attention to.
    HR&S aims to reach the under-served population, either as social entrepreneurs,customers of social entrepreneurs or beneficiaries of scientific research and innovations.
    HR&S gives out loans even if not guaranteed by a value-securing object or capital.
    Lack of formal garantee is matched through three activites that must all be in place;
    i) Cooperative responsability.
    ii) Branding and public relations within the targeted community.
    iii) Accountability management package designed by HR&S.
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The RISEinvest programme is managed by HR&S and the ActionInvest by Action10 and HR&S together.

As a result of that HR&S is reaching out to the under-served poputions and is operating in aid prone  the risk with giving out loans is high.
The high risk is addressed by
i) Much effort is put into coaching and controlling.
The 10% interest is contributing to this cost, but cannot cover the costs fully. The coaches and auditors are reimbursed a minimum annual amount of Euro 300.
ii) The investment capital is generated through donations.

Profit is kept by the entrepreneur to cover the running costs of the company.

The paid back capital is always re-invested in order to: i) scale-up a business within an on-going partnership, ii) start a new business with the same partner or, iii) start- or scale up a new business with a new partner.

HR&S level of interaction approach:
We do not do micro-management but
i) management sharing salaries must be fair and
ii) the costs must be reasonable in relation to the income

Applying for a loan

Start- and scale-up lones are offered in countries with HR&S RISE Centres.
To be eligible for applying for a loan the loan seeker has to go through a process; mini-course, exam, certificate, workshop, loan-taker agreement.

  1. Mini-course.
    The loan taker must attend an HR&S mini-course and thereby achieve an HR&S Certificate.
    The training concerns how to plan for and run a social enterprise; business model, business plan and strategy for change.
    The mini course starts with an introduction at the HR&S RISE Centre, continues with five one hour on-line seminars from HR&S  Sweden and ends with an exam at the RISE Centre.
    It ends with an exam and if the student passes the exam, with a nice certificate.
    The mini-course is marketed through the HR&S website, flyers and Facebook.
    Each participant pays Euro 10.
  2. Workshop.
    Loan takers with HR&S Certificates are welcome to attend a workshop.
    Here the entrepreneur´s own business plan will be scrutinized.
    The workshop takes place at the RISE Centre with HR&S Sweden being on site or on-line.
    If it can be agreed that the business plan combines social good with a profitable business, then the entrepreneur can seek a loan.
  3. Loan taker contract.
    Develop and sign loan-taker agreement and start a loan taker scheme.
  4. RISE member.
    Become a RISE Centre member and pay membership fee.

We seek social entrepreneurs, not business managers, thus the motivation must be the social good and not the generation of money.
We seek social entrepreneurs who understand that this is a loan and not a donation, and the HR&S is in itself a social enterprise and not an aid organisation, and thus also has costs to pay.
We seek social entrepreneurs who appreciate cross-cultural equal partnership.

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Business model.

  1. The income from the mini-course is shared equally between the RISE Centre and HR&S Sweden.
  2. The workshop is paid for by a national institution and the income is shared equally between the RISE Centre and HR&S Sweden.
  3. The RISECentre member fee stays with the RISE Centre.


Loan taker

Loan takers benefit from programme specific coaching (evaluation planning, survey management, accounting and public relations) and  external auditing. Each loan-taker signs a loan and coaching contract with HR&S.

The loans are paid back with 10% annual interest.

The funds are usually paid back within a period of one to three years. When one loan has been paid back, another larger loan can be given. The partnership agreement is based on mile-stones, after each milestone has been achieve, funds are paid back with interest and new loans are made possible.

The loan taker provides a guarantee that is reasonable according to the context. The guarantee can be an asset, a cooperative approach or a social structure combined with a control network. If funds are not paid back as agreed then a programme specific consequence will take place, which has been jointly agreed on between the parties while signing the contract.

Each project starts small and scales firmly. The first loan  shall be small, around € 1,000, and a second loan twice as big. Usually the total loan for each project is € 15,000. Further loans are only granted if the business is well managed according to periodical bank accounts statements, surveys, coaching, programme, and auditing reports, and when certain pre-agreed on milestones have been achieved.

Loan-takers are members of the RISE Centre and thus have access to also other supportive activities. These are paid for through membership fees.

Loan management

The RISEinvest and ActionInvest programme is managed locally by the HR&S RISE Support Centres. Loans are given out with 10 % interest. The loans are combined with coaching.

The capital is generated through fundraising campaigns targeting crowdfunding, monthly givers and major givers. The targeted fund level is euro 15,000 per project. When the target amount for a certain fundraising campaign has been reached, then the fundraising for that programme ends. The RISEinvest and ActionInvest fund is then expected to manage the business until it can be managed by itself. Thereafter the same capital is used to support another social enterprising start- or scale-up.

The interest shall pay the cost of programme specific coaching (evaluation planning, survey management, accounting and public relations) and external auditing. Coaches and auditors are assigned by the RISE Centre  and HR&S Sweden together. Coaches and auditors are reimbursed euro 300 per year and programme. When the capital has reached euro 15,000 per project, the 10 % interest  will pay the coaches euro 1,500 per year.

Funds are transferred to and kept at a local RISE Centre bank account and shall be paid back to the RISE Centre account without exception.

1 % of transferred fund is saved in an emercency fund, which shall be used for emergency health care support to team members when agreed on by RISE management and HR&S.

Euro 400 per year of the transferred funds shall be invested in satellite internet connection at the RISE Centre ( f. ex Econet), if the comminucation otherwise is limited.

The accountability management includes monthly bookkeeping with bank account statements, internal control, annual reports and yearly auditing.

Each RISE Centre can run several parallel RISEinvest and ActionInvest units.

RISE invest

The RISEinvest fund is managed by HR&S.

The capital for the RISE invest funds is raised through crowd-funding and major givers.

HR&S charges 20 % of the raised funds, the crowdfunding platform some % and the Swedish Government 25 % in tax.

Action Invest

The Action Invest fund is managed by Action10;

The capital for the ActionInvest fund is raised through the Crowd-funding platform “Global giving”, Action10 monthly givers and other donations.

3 % of the raised funds remains in Sweden to cover the cost related to bank account and website and 97 % is trasferred to our partners in Sub-Sahara Africa.

Global giving is an active and professional platform and charges 12 % of the raised funds.

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