Impact Week 2025, hosted by Impact Europe, brought together funders, practitioners, investors, policymakers, and social innovators for two days of focused discussion on how to finance, measure, and scale meaningful change. The event highlighted an ecosystem in transition — moving from short-term activities toward long-term partnership, stronger accountability, and more evidence-led decision-making.

1. Funding Models Are Shifting Toward Long-Term, Needs-Based Support

A recurring message throughout the week was the importance of financing models that match the realities of social enterprises operating in complex contexts. Speakers stressed that funding must be flexible, long-term, and grounded in real organisational needs — rather than short-term grant cycles.

As Alfanar’s Co-Director Suha Abdul Rahim noted during a session on rethinking impact funding: “Funding has multiple dimensions. What matters is understanding the enterprise’s need — and how the funding will support them to become both financially sustainable and deepen their impact.”

She added that an impact-first approach requires clarity and intentionality: “We do not ask for the funding back. In return, we need evidence that impact is intentional, that it is going to grow and scale based on their approach.”

Her reflections underscored a broader takeaway: meaningful impact requires patient, blended capital and funders willing to back long-term pathways rather than short-term outputs.

2. Social Enterprises Are Increasingly Seen as Investable Actors

The event highlighted a marked shift toward recognising social enterprises as credible drivers of economic and social value.

During a panel on systems change, Mohammed Al Radi, Alfanar’s Impact Manager, described this evolution: “We are seeing a different mentality. Instead of short-term projects, there are long-term commitments, more focus on financial sustainability — and funders allowing mechanisms like zero-interest loans and even equity.”

He noted that strengthened internal systems — including impact measurement and management (IMM) frameworks — enable social enterprises to demonstrate their licence to operate: “They can show that impact-driven enterprises can be financially sustainable while addressing societal needs.”

This shift signals a growing recognition that social enterprises are not peripheral implementers but central actors in shaping the impact economy.

3. Evidence and IMM Are Becoming Non-Negotiable

Sessions across the week reinforced a clear movement toward data-led decision-making. Governments, investors, and intermediaries are embedding IMM practices to increase transparency and reduce uncertainty.

As Nour Saade, Senior Impact Lead at Alfanar, explained: “We are moving from assumptions to real information. Capital providers want to know not only what they are funding, but how it is being verified. IMM becomes the bridge.”

Her point echoed a wider shift across the ecosystem: impact stories remain important, but verified, decision-ready data increasingly determines where capital flows.

4. Broader Takeaways from Impact Week

Across the week, several themes emerged to spotlight opportunities as well as associated challenges.

• Partnerships are essential but underutilised. When corporates, investors, and philanthropic actors align around shared outcomes, they can accelerate scale — but coordination across actors remains limited.
  
• Funding models are slowly shifting, but fragmentation persists. There is growing appetite for long-term, flexible capital, yet many enterprises still face short project cycles and inconsistent risk appetite from funders.
  
• Evidence is strengthening, but uneven. The ecosystem is moving toward validated data and stronger IMM practices, yet data quality and comparability continue to vary widely across organisations.
  
• Systems thinking is advancing, but policy frameworks lag. Long-term strategies and shared language are gaining traction, but regulatory clarity for social enterprises is still evolving in many markets.
  
• Technology is reshaping the field. AI surfaced as a major opportunity, but speakers stressed that responsible adoption requires understanding underlying systems, not just tools.
  

These takeaways reflect a sector balancing momentum with the gaps that still need to be addressed for impact to scale sustainably.

Looking Ahead

Impact Week closed with a sense of forward momentum — and a recognition that the impact ecosystem is entering a phase defined by long-term commitment, greater transparency, and stronger alignment around measurable, scalable impact. We look forward to the next Impact Week, and to the collaborative work needed to turn these shared insights into lasting, system-wide progress.