Bottom-up social entrepreneurship for the co-creation of neighbourhoods in line with the New European Bauhaus
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See in 5 min if you're eligible for Bottom-up social entrepreneurship for the co-creation of neighbourhoods in line with the New European Bauhaus offering max €16.0M funding💰 Funding Details
Funding Opportunity Overview
Call Identifier: HORIZON-NEB-2025-01-BUSINESS-02
Programme: Horizon Europe – New European Bauhaus Facility (Work Programme 2025)
Type of Action: Innovation Action (IA) – Lump Sum (HORIZON-AG-LS)
Max. EU Contribution per Project: €16 000 000
Submission Scheme: Single-stage (opens 06 May 2025 – deadline 12 Nov 2025, 17:00 Brussels time)
Strategic Rationale
The topic finances large-scale demonstration projects that *co-create neighbourhoods through bottom-up social entrepreneurship* in line with the three core NEB values: sustainability, inclusion and aesthetics (“beauty”). Projects must deliver *at least three* pilots in *at least three* Member States or Associated Countries (your country) and generate new scientific evidence, inclusive business models and investment pathways that can be replicated EU-wide.
Mandatory Technical Scope
1. Pilots – Minimum 3 bottom-up social-entrepreneurship pilots; each must:
* Analyse local social, cultural, legal & financial ecosystems.
* Present a credible *business case* with impact-investment logic.
* Demonstrate measurable improvements in quality of life, social cohesion & employment.
2. Transdisciplinary Co-creation – Integrate citizens (incl. marginalised/vulnerable), civil society, local authorities, planners, designers, investors, social-economy actors, etc.
3. SSH Integration – Explicit involvement of Social Sciences & Humanities in methodology and consortium.
4. Knowledge Sharing Obligation – Allocate ≥0.2 % of total budget to share results with the NEB Hub for Results & Impact (CSA HORIZON-MISS-2024-NEB-01-03).
Financial Particularities
• Lump-sum funding shifts financial risk to the consortium; payment is linked to *work-package-level deliverables* approved by the EC.
• *Co-funding* is not obligatory but can strengthen the investment narrative.
• Indirect costs are covered inside the negotiated lump sum – no 25 % flat-rate applies.
Eligibility Snapshot
• Consortium: Minimum 3 independent legal entities from 3 different your country.
• Admissibility: Part B limited to 45 pages (IA).
• Ethics & Security: Pilots involving vulnerable groups require a full ethics self-assessment.
Expected Impact
Projects should unlock new community-driven business models that scale renovation, circularity and social cohesion, thereby attracting additional public/private capital and inspiring future NEB policies.
📊 At a Glance
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🇪🇺 Strategic Advantages
EU-Wide Advantages & Opportunities for HORIZON-NEB-2025-01-BUSINESS-02
1. Single Market Access (450+ million citizens)
• Pan-European demand for social-value products & services – pilots can scale through the EU Social Economy Single Market, tapping into EUR 370 bn/year public procurement spend that increasingly includes social/environmental criteria (Directive 2014/24/EU).
• Free movement of goods, services and capital lowers transaction costs for transnational cooperatives, community land-trusts and other social enterprises birthed by the project.
• Labelling & certification (e.g. EU Social Economy Label 2025+, EU Ecolabel) provide trusted quality seals, accelerating consumer uptake across borders.
2. Cross-Border Collaboration & Knowledge Exchange
• Mandatory ≥3 pilots in ≥3 MS/AC immediately creates a multinational consortium, unlocking cultural diversity, complementary skill sets and place-based experimentation.
• Access to European NEB LAB network, URBACT, REVES, CECOP, Housing Europe, Eurocities, ICLEI for co-creation clinics, peer learning and replication pathways.
• Staff exchange & twinning supported by Erasmus+ and COST Actions allow entrepreneurs, city officials and researchers to share methodologies beyond the grant lifespan.
3. Alignment with Flagship EU Policies
• European Green Deal & Renovation Wave – delivering citizen-led, low-carbon neighbourhood retrofits.
• Social Economy Action Plan (2021-2030) – pilots can feed evidence into the 2026 review and benefit from forthcoming social-innovation incubation schemes.
• Digital Decade & Digital Europe – integrate civic-tech platforms (e-participation, digital twins) qualifying for additional DEP funding.
• ESG & Sustainable Finance Disclosure Regulation (SFDR) – robust impact metrics make projects attractive for EU-wide impact investors and the InvestEU Social Investment Window.
4. Regulatory Harmonisation Benefits
• Unified GDPR & Data Act framework simplifies deployment of community data spaces for neighbourhood planning.
• EU Energy Performance of Buildings Directive (recast) provides common renovation standards, easing replication of energy-positive pilot models.
• State-aid exemptions for small-scale social services (General Block Exemption Regulation) reduce legal uncertainty for community enterprises.
5. Access to Europe’s Innovation Ecosystem
• 170+ European Research Infrastructure Consortium (ERIC) nodes and Joint Research Centre Living Labs available for advanced monitoring (LCA, well-being indices).
• EIT KICs (Climate-KIC, Urban Mobility, Culture & Creativity 2024+) offer accelerators, venture funding and post-grant market entry support.
• Horizon Results Booster free services (IPR landscaping, business acceleration) maximise exploitation potential.
6. Funding Synergies & Leverage Potential
| Instrument | Possible Use | Synergy Mechanism |
|------------|-------------|-------------------|
| ERDF / Interreg NEXT | Upscaling pilot infrastructures in adjacent cross-border regions | “Seal of Excellence” or follow-up capital grants |
| ESF+ | Training & reskilling marginalised groups involved in pilots | Complementary cost coverage |
| InvestEU (Social Window) | Scale-up loans, guarantee schemes for community enterprises | Blended finance with NEB IA lump sum |
| LIFE Programme | Biodiversity & climate adaptation elements of neighbourhood redesign | Co-funding of green-blue infrastructure |
| CERV & Creative Europe | Community arts, cultural heritage activation | Outreach & citizen engagement |
7. Economies of Scale & EU-Wide Impact
• Common open-source toolkit (methods, legal templates, impact KPIs) mandated by the NEB Hub ensures rapid transfer to other EU cities/regions.
• Standardised Social Return on Investment (SROI) model facilitates comparison by EU investors, easing cross-border pooled funds.
• Policy feedback loop – evidence base can inform upcoming directives (e.g. Social Economy Statute, 2027 Cohesion Policy), amplifying systemic change.
8. Strategic Value over National-Only Initiatives
1. Risk diversification across multiple legal, cultural and market contexts increases robustness of business models.
2. Higher visibility & credibility through Horizon Europe branding, attracting pan-European media attention and philanthropic capital.
3. Benchmarking & certification at EU level positions consortium as first-movers, creating competitive edge impossible in a single-country scope.
9. Actionable Recommendations for Applicants
• Embed an EU-level impact investor advisory board (EIF, EVPA, Philea) to design scalable blended-finance vehicles.
• Map complementary EU funds during proposal phase and include a Work Package on fund-matching to de-risk continuation.
• Plan for multilingual dissemination (all EU official languages in summary form) to meet 450-million-citizen reach.
• Align KPIs with EU Taxonomy & NEB monitoring framework to future-proof impact reporting.
• Secure formal letters of support from transnational networks (Eurocities, Housing Europe) to reinforce EU-wide replication potential.
Conclusion
Leveraging the integrated European landscape enables consortia under this call not only to test innovative social-entrepreneurship models but to hard-wire them into EU regulations, finance and markets—unlocking transformative, replicable and scalable neighbourhood solutions that a purely national project could never achieve.
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Ready to Apply?
Get a personalized assessment of your eligibility and application strategy
See in 5 min if you're eligible for Bottom-up social entrepreneurship for the co-creation of neighbourhoods in line with the New European Bauhaus offering max €16.0M funding