Mapping the Western Balkans Impact Ecosystem
As of 2026, the Western Balkans and the wider Central and Eastern Europe (CEE) region stand at a critical juncture. While the region continues its complex journey toward European integration, a vibrant, resilient, and mission-driven social entrepreneurship sector is taking shape. As a part of our EU-funded Impact Seed programme, we circulated a survey that has now resulted in a mapping study that outlines the supply and demand side of impact investing in the region.
Our latest report, Mapping the Impact Ecosystem: Insights from the Western Balkans, dives deep into this landscape, exploring the realities faced by social enterprises and the stakeholders supporting them. The report is based on a qualitative analysis of survey responses and interviews with social enterprises and funders in Albania, Croatia, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, Serbia, and Slovenia.
Impact Europe would like to expressly thank all participants, as well as ACT Grupa, Euclid Network, Fund 2740, Feelsgood Capital, ADP-Zid, ARNO, Partners Albania for Change and Development, Innovation Centre Kosovo, Smart Kolektiv, Fondacija 787, our partners in both the EU-funded Impact Seed and Invest for Change projects for contributing to this report.
A Young, Dynamic, and Resilient Ecosystem
The study paints a picture of a sector that is deeply embedded in local communities, often led by women, and focused on critical areas such as education, employment, rural development, and environmental protection. Despite their drive, many of these enterprises face a "dual reality". While they are ambitious and looking to grow, diversify, and reach new markets, they are simultaneously constrained by limited financial resources. Our findings reveal that the majority of these organisations operate on small annual budgets and rely heavily on grants, often finding it difficult to access the appropriate external finance needed to scale their impact.
Beyond the need for capital, the enterprises we surveyed are explicitly calling for "smart capital"—support that includes mentoring, investment readiness training, and help navigating complex regulatory environments. Crucially, the study also highlights a need for better impact measurement. While many organisations are willing to measure their impact, they currently lack the proportionate systems and capacity to do so in a way that satisfies both their own learning needs and potential investor requirements.
The Road Ahead for Investors
On the supply side, there is genuine curiosity and a willingness to learn about impact investment, but there is also work to be done. We see a need for better community building and a shift in perception—both to decouple "social" entrepreneurship from negative, charity-based connotations and to bridge the gap between non-profit mindsets and business-minded investment.
The Mapping the Impact Ecosystem report serves as a baseline for ongoing efforts under the EU-funded Impact Seed and Invest for Change projects. Our activities within those projects focus on practical actions: raising awareness, building capacity, facilitating grant matching, and advocating for policies that enable, rather than restrict, social impact.
The potential for impact investment in the region is significant. By creating better examples, fostering transparency, and nurturing a community of both institutional and individual investors, we can help these enterprises move from nascent initiatives to powerful drivers of regional change.
The full report is now available below: