Promoting entrepreneurship in Norwegian municipalities
Complex social, environmental, and economic challenges have led to increased interest in public innovation. In Norway, there is a growing emphasis on local democracy, innovation, and community development within the public sector, with concepts such as co-creation, citizen involvement, and “municipality 3.0.” Municipalities and districts play a crucial role in improving services by deeply involving citizens, although they are still working on finding effective tools.
Norway Unlimited seeks to promote knowledge on how municipalities can enable citizens to be significant contributors to solving the challenges they face. They do this by nurturing local ideas and creativity, which are then developed into social enterprises. This approach allows those who understand the issues best to create better lives for themselves and those around them, with neighbourhoods serving as ecosystems for social innovation.
Ragnhild Klevmoen is at the forefront of this journey. She was educated as a nurse and finished her studies in 1992. After working with drug addicts in a hospital for one year, she realised that she could be most helpful to them in different contexts. Therefore, she started working in a prison, where she was employed for several years. After a period working in public sector health care, she joined the Church City Mission, a diaconal foundation in Norway doing social work in alcohol/drug care, rehabilitation to work, elderly care, child welfare, mental health care, to mention some of the areas.
Through those experiences, she learnt an important lesson about the strength of people who have faced significant burdens in their lives yet continue to persevere and not give up. She also learnt to recognise and respect the strength within communities, not just among those who work every day and have extensive education, but also among those facing significant life challenges. She saw the power that emerges when people come together in their neighbourhoods, driven by a common desire to improve their community.
Following her interest in communities, Ragnhild furthered her education with two master’s degrees: leadership and community development and social innovation. As a consequence of her studies, her interest in entrepreneurship and social innovation grew to the extent that she wanted to support individuals in overcoming substantial life obstacles in different and innovative ways.
In 2022, Ragnhild got involved in Norway Unlimited, an emerging initiative to foster innovation and social entrepreneurship in local contexts. What got Ragnhild hooked on this organisation was the possibility of contributing with what she had learnt at the Church City Mission. She says, “There, we focused on people’s resources rather than their problems. We aimed to enable individuals to contribute using the strengths they possess rather than categorising them solely based on their drug dependency or physical health issues. Everyone has something valuable to offer to their neighbourhood or city. Recognising and integrating these strengths into systems for contribution was a key aspect of our work”. Soon, Ranghild became a network leader for Norway Unlimited.
A rapid-growing idea
Although Norway Unlimited was established in 2022, the Unlimited model was initiated by Sarah Prosser as a pilot project in Tøyen in Oslo in 2015. The methodology behind Unlimited was inspired by Unlimited UK, in combination with social work communities such as Impact Hub. Prosser aimed to empower residents to contribute solutions for their neighbourhoods.
Tøyen Unlimited successfully created a space for residents to actively participate in welfare innovation by developing new solutions for the welfare system. According to Prosser’s experience, active residents could leverage their local connections to reach people more effectively than the public sector. Weekly meetings encouraged collaboration among inhabitants, leading to local economic benefits and community empowerment. This approach proved particularly beneficial for refugees integrating into Norwegian society, allowing them to contribute meaningfully to their new communities.
The initiative was very successful, and it expanded to Stavanger in 2019. As of 2024, there are six neighbourhood incubators in Norway, three in Oslo, two in Stavanger, and one in Drammen. Conversations with other municipalities about public sector innovation and social innovation are ongoing.
Neighbourhood incubators: a new model
Norway Unlimited adopts a comprehensive approach to supporting social entrepreneurs. It operates neighbourhood incubators, providing physical spaces for collaboration and co-working. It also offers digital platforms for communication among community members and tools for measuring social impact.
To identify and support local entrepreneurs, they work with municipalities, as well as private sector and non-profit organisations. They recruit participants through word of mouth and community outreach, including social media and local announcements. The incubators offer three support packages: 1)Try it; 2) Do it; and 3) Build it, each providing varying levels of guidance and resources, starting at 10,000 NOK.
Applications are open to anyone with a social impact idea. A board evaluates proposals based on criteria like community benefit and alignment with social goals. According to Ragnhild, the incubators emphasise listening to and supporting entrepreneurs without imposing their ideas, helping them develop their initiatives using tools like social business canvas and impact measurement.
Promoting cross-sectoral collaboration
While projects within Norway Unlimited do not have to directly cooperation with the public sector, they should effectively align with the municipality’s plans to bridge community resources and municipal goals. The neighbourhood incubators are encouraged better to understand the city plans, both social and urban, and to connect local competence and knowledge with public initiatives. This bridging makes it easier for the public sector to innovate and utilise community resources effectively.
The private sector also plays a role as companies increasingly focus on social, environmental, and economic dimensions. Some private companies support the incubators by funding packages, facilitating cooperation between various sectors. This collaborative approach places residents at the forefront of service innovation, reducing effort for each sector and emphasising the importance of social impact in sustainable development.
How incubators support
In the neighbourhood incubators, the Unlimiters receive support from a “støttespiller” (support person), who uses the “støttespiller handbook” (in Norwegian) as a guide. Ideally, this person has prior knowledge about the area where the selected projects will work. But, if they don’t have the necessary expertise, they can learn or find the right person to support the Unlimiters. Incubators like Tøyen and Storhaug have accumulated extensive knowledge, and collaborate with municipal business departments and other sectors for additional support.
Workshops and courses in incubators often involve external experts, ensuring a comprehensive support system. The support includes understanding economic and business plans and developing sustainable business models, moving away from reliance solely on public funding.
The Unlimiters receive initial funding packages: 10,000 NOK to start their projects, 50,000 NOK for further development, and 100,000 NOK for more advanced stages. These funds help with initial activities, creating websites, and developing minimum viable products.
The primary support lasts about one year and is tailored to individual needs. Since 2020, 130 Unlimiters have generated 96 new ideas across five neighbourhood incubators. Incubators are managed mainly by the public sector, but Norway Unlimited and local volunteer organisations also play roles. The management model is evolving, aiming to explore public, private, and volunteer sector collaborations to enhance local impact.
A tool to measure impact
Norway Unlimited has developed a tool called Vis Det! (Show it!) for monitoring a set of indicators that measure the social impact of local businesses started by local social innovators. The tool is designed in three parts:
- Defining social effects at the start of a project
- Collecting relevant data and, ultimately,
- Showcasing the impact
The tool emphasises a qualitative approach above the merely quantitative, allowing flexibility to include custom indicators as projects evolve and unexpected connections and collaborations arise across public, private, and third sectors. This dynamic approach aims to capture diverse perspectives and outcomes effectively.
Ecology, culture and arts, some examples of projects
Throughout the last few years, the Unlimiters have developed various innovative projects. Here are a few examples:
- Somali Food: A woman from Somalia started a business making and selling traditional Somali food. Initially, she catered to her local community, but her business grew as the municipality and other sectors began buying food from her. This allowed her to employ others and expand her business, which now involves her sons and supports local events. Read more about the Unlimiters/social entrepreneurs in Tøyen Unlimited.
- Green Spaces in Stavanger: Two men transformed green areas between buildings into community gardens. Residents can buy plots, grow food, and sell produce to local restaurants. These gardens also serve as community meeting spots. Thanks to support from Unlimited Norway and other sources, the founders eventually left their jobs to focus on this project full-time. Read more about the Unlimiters at social entrepreneurs in Storhaug Unlimited.
- Film and Music Project in Romsøs: A young man passionate about music and film started a project to support local musicians, dancers, and choirs. He created films and promotional material for various local groups, including musicians and sports teams. Despite juggling two part-time jobs, he successfully built a sustainable business model. He now works full-time on this project, helping others in his community pursue arts careers. Watch videos where Unlimiters explain how they use some of the tools at Norway Unlimited open tool side.
The projects create a real impact
Norway Unlimited has created a significant impact by addressing local issues and creating jobs within the community. The businesses developed by the Unlimiters are focused on solving local problems, leveraging their deep connection to their communities to develop creative and effective solutions. These ventures offer alternative ways for people to find work and engage in productive activities, filling gaps in the market and improving the range of services available in municipalities.
One notable effect is the increased participation of local volunteers. These projects foster greater community engagement by involving residents, including those who might be unable to work due to age or health. Additionally, participants, particularly young people, gain valuable experience in managing finances through paid work and learning to handle money legally and responsibly.
The Unlimiters also serve as inspiring role models in their neighbourhoods, offering hope and motivation to those who might feel left out or disadvantaged. The neighbourhood incubators themselves function as hubs for collaboration, bringing together the public, private, and volunteer sectors along with the local population. This collaboration strengthens community bonds, promotes economic sustainability, and encourages further social innovation.
Advocate for social entrepreneurship
In Ranghild’s opinion, one of the main challenges she faces is that social entrepreneurship is poorly understood. This is surprising given Norway’s strong tradition of volunteerism, which has historically driven the establishment of schools, hospitals, and the healthcare system. Despite this tradition, there is confusion about the nature of social entrepreneurship. Many people need clarification on whether it belongs to the non-profit or commercial business sectors. This confusion has made it difficult to establish the necessary infrastructure for buying services and supporting social entrepreneurs.
To address this challenge, Norway Unlimited has recognised the need for systemic change, which requires collaboration with diverse stakeholders. They emphasise the importance of valuing the existing strengths within the welfare system. For example, they have organised events such as the two-day Social and Solidarity Economy conference, where experts from the Organisation for Economic Cooperation and Development (OECD), with its Local Employment and Economic Development Programme (LEED), shared tools and policies.
Additionally, working closely with municipalities allows them to identify opportunities for collaboration and innovation. Ragnhild mentions the example of Stavanger, where local efforts have successfully fostered a cooperative environment that integrates social entrepreneurship as a vital community component. Ragnhild stresses that this collaborative approach is essential to ensure that social entrepreneurs have a meaningful role in society’s future.
Written by Jose Rodriguez and Ragnhild Klevmoen