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ANNUAL REPORT

JANUARY 1ST– DECEMBER 31ST, 2018

SARAJEVO, JANUARY 2019

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CONTENT:

1. Short Summary

2. Strategic Statements 2015-2026

3. Results Achieved in 2018

3.1. Attract and identify responsible, ethical and positive youth

3.2. Mobilize and develop community leaders

3.3. Support and invest in promising ideas of social entrepreneurs

3.4. Become the regional gold standard for sustainability and social entrepreneurship

4. Mozaik’s Development

4.1. Regional Scaling

4.2. Mozaik Impact Fund II

4.3. Community Building and Data Analytics

4.4. Networks

5. Challenges and Risk Mitigation Strategies

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1. SHORT SUMMARY

MOZAIK FOUNDATION is a social enterprise based in Bosnia and Herzegovina with a

mission to identify, empower and invest in value-driven and innovative social

entrepreneurs, creators of good economy. We are committed to achieve our 10-year

impact: “Between 2016 and 2025 Mozaik will lead the development of a break-through

generation of entrepreneurial and innovative youth - a value-driven force that creates new

social and economic value, creates new jobs and serves as role model to other youth.”

In order to involve many different stakeholders, share ownership, increase participation

and achieve promised impact, we launched on-/offline community LONAC (the pot),

where young person can find everything she needs for her professional success. Since

April 21 2018, when the community was launched, 11.131 individuals registered.

We are running two interrelated programs that create opportunities for youth:

YouthBank, where we identify and empower young social innovators and entrepreneurs

through community grants. In 2018, young people applied with 332 projects and 263 were

supported, totaling 324.153 Euro. 42% of this amount was raised by non-formal groups

and additional 32% Mozaik raised from municipalities, meaning that on every Euro

Mozaik grants through this mechanism, three Euros are mobilized locally.

Our second program, Impact Incubator, provides free and quality support to young social

entrepreneurs. Beside mentorship, Mozaik is also providing impact investment to these

social entrepreneurs that satisfied developed criteria for social businesses. In 2018, we

incubated 161 social businesses ideas and invested in prototype development of 29 new

businesses. Finally, we invested in 15 social businesses that address social issues in

economically sustainable way.

In 2018 we developed strategic partnerships with several companies, who are now part

of the ecosystem and provide social banking services (Sparkasse Bank), place on their

shelves for social businesses’ products (dm and Mercator) and physical spaces in 3 cities

for entrepreneurs (PMI).

Mozaik’s annual budget was 1.326.112 Euro, coming from 43 various sources, including

strategic partnerships with 32 municipalities, seven private foundations (Bosch Stiftung,

Mott Foundation, Medicor Foundation, ZEIT Stiftung, TechSoup Foundation, Rockefeller

Brothers Fund and one anonymous foundation), one fund (EFSE) and one individual

impact investor (anonymous). This year, we signed contracts with SIDA and SDC who

agreed to join and co-fund our strategy. EU supports our cooperation with regional

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foundation (SIGN Network) and USAID our partnership program with Eurofoundation

on strengthening YB program in Georgia and Macedonia.

We are proud that our fruitful cooperation with US Deloitte d2i program has continued

and that we had eight consultants working with us in 2018. Their support since 2014 in

pro-bono consulting is now to over 3M USD.

2. STRATEGIC STATEMENTS 2016-2025

2.1. VISION

BiH and the region - where economy is good for all!

2.2. IMPACT STATEMENT

Between 2016 and 2025 Mozaik Foundation will lead the development of a break-through

generation of entrepreneurial and innovative youth - a value-driven force that creates new

social and economic value, creates new jobs and serves as role model to other youth.

2.3. MISSION STATEMENT

Identify, empower and invest in value-driven and innovative social entrepreneurs –

creators of good economy

2.4. OBJECTIVES

2.4.1. ATTRACT AND IDENTIFY RESPONSIBLE, ETHICAL AND POSITIVE YOUTH

KPI: #of youth that benefit from Mozaik online learning programs and take online tests.

10-YEAR TARGET: 50.000 youth

2.4.2. MOBILIZE AND DEVELOP COMMUNITY LEADERS

KPI: # of Mozaik-supported community projects that increase youth awareness and

commitment to social impact.

10-YEAR TARGET: 5.000 youth-led projects

2.4.3. SUPPORT AND INVEST IN PROMISING IDEAS OF SOCIAL ENTREPRENEURS

KPI: # of Mozaik-supported social entrepreneurs that start social businesses.

10-YEAR TARGET: 500 social enterprises and microbusinesses

2.4.4. BECOME THE REGIONAL GOLD STANDARD FOR SUSTAINABILITY AND SOCIAL

ENTREPRENEURSHIP

KPI: % of Mozaik’s minimum viable budget coming from endowment and social

businesses.

10-YEAR TARGET: 100% of the minimum viable budget (500.000€)

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3. RESULTS ACHIEVED IN 2018

3.1. ATTRACT AND IDENTIFY RESPONSIBLE, ETHICAL AND POSITIVE YOUTH

3.1.1. DEVELOPING ON-/OFFLINE COMMUNITY

In order to establish and maintain an ecosystem of support for young social entrepreneurs

and activists, Mozaik launched LONAC, an on-/offline community for entrepreneurship

and activism. Online part of the community is placed on the platform www.lonac.pro that

provides free and quality end-to end solution to entrepreneurs and activists in BiH and

the region.

On LONAC young person can get answer to her questions, grant for socially innovative

project through YouthBank, investment in prototype development, investment in social

business registration, tailor-made mentorship support, no-collateral loan for acceleration

and free access to capacity building and information. Offline components of the

community are face-to-face trainings and capacity building, implementation of social

projects and social businesses. In 2019 we will establish physical spaces, LONAC Hubs,

in Sarajevo, Banja Luka and Bihać.

On April 21st, 2018 we opened public beta version of the community and until end of the

year we have had these results:

• 56.347 people visited community (55,6% female, 44,4 % male)

• these 56.347 made 116.505 sessions

• 11.131 registered, although everyone can surf as anonymous

• 1.119 people (44% female, 56% male) developed 332 applications for YB projects,

• 283 approved for funding in 46 BiH municipalities

• 161 entered our impact incubator

• 29 got investment to test their minimum viable product

• 15 social businesses were registered.

• 43 people (40% female, 60% male) applied with microbusiness ideas

• 15 microbusinesses were registered

• 69 applied for social banking

• 4 received loan for acceleration (with Sparkasse)

• 6 received investment for acceleration (through EFSE)

Our efforts were focused on community building, curation and implementation of

various campaigns, events and brand building activities. To achieve the set targets and

goals we have defined and carried out marketing methods which enabled us to attract

young people, engage with them through various channels, got them to participate and

receive support that is tailor-made to them.

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The following activities were implemented to achieve this objective (all details are

presented on this link http://online.fliphtml5.com/ihsr/cejq/ ):

1. Campaigns:

• 80 campaigns for YB projects in 32 partner municipalities

• Campaign for YB projects at national level

• Campaign for micro-businesses

• Campaign for investment in prototype development and testing

• 2 campaigns for investment in social businesses

• 5 campaigns for internships

2. Events

• 2 Demo Days 1.0

• 1 Demo Day 2.0

• 80 promotions of YouthBank campaigns in municipalities

• 32 promotions of implemented YB projects in municipalities

• Presentations of LONAC

• Contract signing ceremony with new 15 microbusinesses

3. Other activities

• Continuous promotion and PR support of social businesses

• LONAC.pro – launch of public beta

• Launch of LONAC Facebook and Instagram profile

• Reached over 20,000 followers on Mozaik Foundation’s Facebook page

• Website redesign www.mozaik.ba

• 3 newsletters – eMpresso

• New Year greeting card

Our on-/offline community LONAC enabled us to open more campaigns and invite more

people to apply than ever before. YB board members provide online and offline support

to improve quality of the projects, select these that are developed according to criteria and

approve the funding.

3.1.2. LONAC HUB

LONAC HUB is an initiative we’ve started in 2018 with a goal of establishing a network

of Hubs focused on social entrepreneurship, innovation and education. Our hubs will

consist of coworking spaces, conference rooms, meeting rooms and makerspaces.

We have finished the preparation stage for Lonac Hubs in Sarajevo and Banja Luka in

2018 and we expect to have them up and running until the end of 2019 Q1. Aside from

this, we are partnering with PMI to establish an Innovation program in Sarajevo which

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aims to connect entrepreneurs and innovators with all relevant stakeholders, in order to

bridge the gap between ideas and viable business ventures. The program’s first phase is

planned to last for 10 months (until the end of 2019), after which we’ll make adjustments

based on the needs of our target group.

Long-term plan is to have a network of Hubs in all major cities in BiH and by the end of

2019 we expect to have at least 3 opened, since we are already in negotiations with City

of Bihać as our third location.

3.1.3. DEVELOPING PARTNERSHIPS WITH MUNICIPALITIES AND OTHERS

We expect large collective impact to be achieved through this community. We have

opened the position Manager for Collective Impact and have already negotiated several

other stakeholders to promote their activities and use LONAC as a channel to offer more

opportunities to youth.

One of the most important partnership is with municipalities. Mozaik continued

developing partnerships with governmental institutions in order to provide leveraged

funds and a solid base for sustainability of the programs.

With 32 municipalities we have signed cooperation for 2018: Bosanska Krupa, Bosanski

Petrovac, Bugojno, Cazin, Doboj, Doboj Jug, Goražde, Gornji Vakuf-Uskoplje, Istočna

Ilidža, Jezero, Kladanj, Konjic, Kostajnica, Kotor Varoš, Kozarska Dubica, Laktaši, Lopare,

Novi Grad, Novi Travnik, Modriča, Mrkonjić Grad, Odžak, Olovo, Srbac, Šipovo, Tešanj,

Ugljevik, Usora, Zvornik, Zavidovići, Žepče, Živinice.

Municipalities allocated funds for Mozaik

in their annual budgets and most of them

incorporated the YB program in their

municipal development strategies or

strategies for youth.

Meeting with Mayors, December 2017

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We have developed number of meaningful

activities for municipality representatives to

gather and discuss program improvements

and share the best practices. These activities

strengthen the synergy between Mozaik and

municipalities and enable us to provide a

long-term perspective for all. Municipality representatives in Sarajevo July 2018

3.2. MOBILIZE AND DEVELOP COMMUNITY LEADERS

3.2.1. YB PROGRAM DEVELOPMENT

YB program offers small grants to non-formal youth groups. Every grant is approved by

trained young volunteers, YB Board members, through participatory grantmaking

process that is integrated in LONAC. They make the final decision on which youth

projects will be approved to compete for community votes and receive the grant. At the

beginning of 2018, we had 180 (98 females and 82 males) board members. Among them,

70 board members were new, selected through public call in December 2017.

During February-March 2018, online and offline capacity building have been organized

for all new YBs board members. Crucial role during these peer-to-peer trainings was

performed by the “old” board members - those who have previously performed the role

of the board member in the YB program and could thus give practical guidance to

newcomers.

During April 2018, YBs organized offline promotions of YB program in their communities

– 100 board members (50 females and 50 males) organized 80 presentations in which 1.200

youth took part (564 females and 636 males).

Workshop in Jezero for new members of YBs Sipovo, Mrkonjic Grad and Jezero. Workshop in

Ugljevik for YBs from Lopare and Ugljevik.

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YB board members have an active role in all phases of program development and

implementation. This includes promotion of the YB program in their communities,

provision of support to the non-formal groups during the application process and

monitoring of approved projects. It is important that board members serve as a direct

channel of communication between youth groups in communities and the municipal

mayor or representative, and that they have a chance to facilitate program improvements

during meetings or promotional activities.

3.2.2. CAPACITY BUILDING FOR THE YB NETWORK

With an aim to further build the capacity of the YB

Network and strengthen their role in engaging and

empowering youth for activism and

entrepreneurship, Mozaik has organized a training

in Sarajevo, named “Business Canvas Model”. The

event took place on April 24-25, where 27 YB

representatives took part.

Moreover, Mozaik organized weekly

online meetings which served as

additional mentoring for the YB

members, aimed at strengthening their

skills when it comes to engaging and

empowering youth in their

communities.

From July 4-7, Mozaik has organized a training for 40

YB board members from BiH, Georgia and Abkhazia.

3.2.3. PARTICIPATORY GRANT-MAKING PROCESS

Grant-making process in the YB program is fully youth-driven: youth develop the

application, the criteria, they invite their peers to apply in non-formal groups, young

people mentor the process of the project development and finally approve projects for

community voting.

Fully online – each step of the grant-making process is carried online (including the

submission of projects, selection process, monitoring and reporting) To support those

without an internet access, Mozaik specified that only 3 members of a non-formal group

(out of a maximum of 7) are required to register online. Furthermore, we promote calls in

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rural areas and enable free or cheap access to internet with support of private and public

partners in every municipality.

Transparency – each application that is approved by the YB board member is made

visible to everyone. Everyone in the community www.lonac.pro can read the project

proposal and its reports as well as monitor the implementation of the project.

YB Board Members decide on who gets the funding. Board members were responsible

for evaluating applications, mentoring groups to fulfil all set criteria, and approving

applications for the voting campaigns. They monitor the projects throughout the

implementation.

Grant Manager was responsible for the development of criteria together with the YB

board members, development of the public call material and applications guides, lunch

of the voting campaigns, approval of applications for the voting campaigns,

announcement of winners and contracting. Furthermore, the Grant Manager monitored

the implementation of the projects and the entire process of grant-making.

Community members were the ones that took the final decision in approving projects.

They were voting for the projects they considered as most significant for the local

community and ensured the financing for the groups. Everyone registered for voting

could vote for the projects. Everyone could vote only once for one or more projects.

Detailed steps in the grant-making process: http://online.fliphtml5.com/ihsr/cvaa/

3.2.4. YB CAMPAIGNS - OPEN CALLS FOR YOUTH PROJECTS

During the period from 21st April to September 17th, we have published 80 calls (4 rounds)

in 32 partner municipalities and one BiH call for projects in other municipalities (about

110). Details of the process are on this link: http://online.fliphtml5.com/ihsr/xtuw/

3.2.5. YB AWARDING CEREMONIES - SIGNING CONTRACTS WITH YOUTH GROUPS

We have organized 63 awarding ceremonies in partner municipalities, aimed at signing

contracts with the non-formal groups. Municipal mayors, representatives of

municipalities, the YB board members and groups attended these events. In addition, in

14 non-partner municipalities we also have organized awarding ceremonies during the

BiH National Call.

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All information regarding the awarding ceremonies can be found in LONAC blogs, which

included remarks from the attendees and the event photos.

YouthBank No of projects Date of ceremony Blog and photos

Bosanska Krupa 19 08.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjeljivanja-cekova-u-

bosanskoj-krupi

Bosanski Petrovac 3 08.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjele-cekova-u-

bosanskom-petrovcu

Cazin 5 08.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjeljivanja-cekova-u-

cazinu

Doboj 6 05.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanje-ugovora-omladinska-banka-doboj

Doboj Jug 8 02.06. https://www.lonac.pro/view-post?uri=ceremonija-u-opcini-doboj-jug

Gornji Vakuf - Uskoplje 2 06.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjele-cekova-u-

gornjem-vakufu---uskoplju

Istočna Ilidža 2 04.06 https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora---omladinska-banka-

istocna-ilidza

Jezero 4 04.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-u-opstini-jezero

Kladanj 5 05.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora---opstina-kladanj

Konjic 2 04.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora---omladinska-banka-konjic

Kostajnica 3 20.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjeljivanja-cekova-u-

kostajnici

Kotor Varoš 2 05.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-u-opstini-kotor-varos

Laktaši 2 06.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjele-cekova-u-

laktasima

Lopare 2 29.06. https://www.lonac.pro/view-post?uri=ceremonija-dodjeljivanja-cekova-i-potpisivanja-ugovora-u-

opstini-lopare

Novi Grad 20 11.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjele-cekova-u-opstini-

novi-grad

Novi Travnik 2 08.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora--omladinska-banka-novi-

travnik

Modriča 16 07.06. https://www.lonac.pro/view-post?uri=potpisivanje-ugovora-i-dodjela-cekova-u-opstini-modrica

Mrkonjić Grad 8 06.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjele-cekova-u-

mrkonjic-gradu

Srbac 11 04.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-u-opstini-srbac

Šipovo 4 04.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-u-sipovu

Tešanj 3 05.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjela-cekova-u-opcini-

tesanj

Usora 11 05.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-u-opcini-usora

Zavidovići 3 08.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora--omladinska-banka-

zavidovici

Žepče 8 07.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora--omladinska-banka-zepce

Examples of the Supported Projects

Title of the project: Colourful Street Location: Municipality Šipovo

Grant: € 308 Community contribution: € 168

Thanks to the youth in Šipovo, children had an opportunity to colour their town with

their own drawings and writings. They had four hour long gathering with 200 peers,

parents and other visitors. They were enjoying themselves through play, music, balloons

and their own decoration of the town. This was a rare opportunity for citizens

(especially for children) of Šipovo to attend this kind of an event.

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Project name: No limits Play Location: Novi Grad

Grant: €368 Community contribution: €301

Volunteers renovated children’s playground. They installed seesaw, slide and other

toys. Decorated it and made it fun for play. The playground is in the kindergarten and

now 120 children have an opportunity to use it daily.

During the period from June 5th until December 10th, 2018, we have paid expenses for 269

successfully implemented projects of non-formal groups. This was a challenging process

as we were at same time investing our time in innovating the LONAC community,

particularly the financial module and the whole process of the financing of the projects. It

is very important to stress out that only 14 groups (5%), due to other working obligations,

did not purse their projects.

# Applied projects # Awarded projects # Implemented projects

332

in 46 municipalities

283

in 46 municipalities

269

in 43 municipalities

Achieved results of 269 finalized projects are following:

Total amount of

269 projects

Mozaik from

donors

Municipalities Community

contribution

€324,153 €82,867 €104,750 €136,536

100% 25,56% 32,32% 42,12%

Volunteers/beneficiaries Beneficiaries Volunteers Volunteer’s hours

Female 21.543 1.741 12.625

Male 36.462 2.840 27.031

Other 0 0

Persons with disabilities 747 33

TOTAL 58.005 4.581 39.656

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Community contribution

Public Institutions Companies Individuals NGOs

No. of

contributors 144 147 407 115

In-kind (EUR) €24,434 €20,456 €36,956 €20,067

Cash (EUR) €13,559 €2.592 €8,215 €10,067

SUBTOTAL €37,993 €23,048 €45,172 €30,324

TOTAL COMMUNITY CONTRIBUTION €267,042

Through the YB program, Mozaik engaged a tremendous number and percentage of local

resources. It is important that philanthropy development was a cornerstone over all

previous years, and the model itself is included in municipal strategies and their budgets.

Promotion and education of volunteers on how to mobilize local resources made our

program fruitful and well recognized.

3.2.6. SIGNING MOU WITH MUNICIPALITIES (2019-2022)

After the implementation of youth projects, we have organized 30 ceremonies in

municipalities with an aim to promote achievements and results of supported projects at

a municipal level. These events were hosted by governmental representatives and the

board members who were welcoming youth groups and other stakeholders from

communities who supported the actions. For these events we have printed posters of

successfully implemented projects in order to promote results and the increasing support

provided by our donors and partners. In addition, we have provided certificates of

achievements for youth groups, board members, and stakeholders that have provided

additional contribution to youth projects.

Mozaik signed the YouthBank program MoUs with 30 municipalities for the period 2019-

2022. It is important to stress out that 25 partner municipalities are to continue with their

support to the YB program and 5 new partner municipalities will join the partnership.

These 30 municipalities will allocate 610.000 EUR over the period 2019-2022.

During 2019 we plan to involve 10 more municipalities in the YB program.

3.3. SUPPORT AND INVEST IN PROMISING IDEAS OF SOCIAL ENTREPRENEURS

3.3.1. MOZAIK’S IMPACT INCUBATOR

Mozaik offers extensive business development support to prospective young social

entrepreneurs. Incubation period within our incubator is tailored to each business, where

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all teams are asked to participate in a series of events. It all starts with short application

on LONAC. During this part of incubation, start-up teams are introduced with the

ecosystem and social business concept. After selection of the most promising ideas, based

on the impact and market potential, teams spend about 5 to 8 weeks developing and

validating their social business concept using tools such as social business canvas. After

successful concept validation on Demo Day 1.0, selected teams access to pre-seed

investment (up to 2.500€) used for prototype development and testing. What follows is a

few months of intensive market research and product/service testing, overseen by

experienced internal and external mentors.

Findings from the first phase of incubation are brought by teams to Demo Day 2.0, where

participants pitch their social business ideas to an investment committee that decides

what businesses will receive further support to the amount of up to 20,000€. This

investment is accompanied by a contract regulating ownership and obligations of each

side – Mozaik and the team who brought about the business idea – in the new social

enterprise to be registered jointly, with Mozaik as a minority owner.

The whole journey from an idea to a registered business is guided and supported by an

expanded pool of external mentors, professionals in all walks of business and academic

background. Our mentoring pool in 2018 are 22 mentors. Our plan is to keep expanding

the pool to cover every aspect of the social business development cycle and improve the

service through corporate volunteering offer in LONAC.

A series of events in 2018 organised by Mozaik contributed to building a solid base for

incubation of new businesses. Throughout the year, young women and men applied with

161 social business idea, whilst Mozaik invested pre-seed into 29 social business

prototypes and registered 15 social business.

3.3.2. DEMO DAY 1.0

During 2018, Social Business Incubator organized two physical Demo Day 1.0 events –

first in March 2018, second in June 2018 and one virtual Demo Day 1.0 in July 2018.

At all three Demo Days 1.0 we gathered 30 teams and 33 young people coming from 16

towns, bringing with them 26 new social business ideas. All businesses received

mentorship support up to three months prior to Demo Day 1.0, to ensure their idea is

developed into business model ready for a pre-seed investment.

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Detail from the Demo Day 1.0 in June 2018

First Mozaik’s Virtual Demo Day 1.0 was a new era of Incubator's approach to young

people who have social business ideas that are still in development phase, in need of

mentoring and financial support, but are unable to attend our in-field events for various

reasons (family obligations, full-time jobs, distance limitations, etc).

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The following ideas were awarded with the pre-seed investments in 2018:

Social Business Name

Town /

Location Short description

Axis Tešanj Chicken feet & paw processing plant

Eko s juga Mostar Production of vegetables

Soft Hug Breza Production of aromatised decorative pillows

Vilenski čajevi Kotor Varoš Production of natural teas

PetWet Sarajevo Production of shampoos for pets

Lahor Mostar Automated laundry facility

Nanine slastice Mostar Production of domestic, handmade food

Argerr d.o.o. Sarajevo 3D modelling studio

Svijet bez etikete Tuzla On-line psychological counselling

New way english school Tomislavgrad School of English language

BioS cosmetics by Alabajči Tuzla Natural cosmetics production

WallME Sarajevo Digital advertising walls

Hostel Square Tuzla Tuzla Hostel and tourist agency

Reduce, Reuse, Recycle Mostar Recycling facility for PET bottles,

Stap Milk Zenica Production of homemade milk and cheese.

Learning through Play Vogošća Production of educational toys and mobile apps for

parents to use with their kids.

The Little Field of Pomegranate Mostar Pomegranate juice production.

Flop East Sarajevo Student co-working space and information web portal

UNITE Tuzla Social netoworking mobile application.

NDone Sarajevo NFC (Near Field Communication) ordering and

payment system.

Note: nine more teams got pre-seed and seed investment, they are describe in the section

about registered businesses.

3.3.3. DEMO DAY 2.0

In April 2018, Sarajevo was home to Demo Day 2.0, giving teams we’ve worked with over

the last six months an opportunity to pitch for a seed investment and continuous

mentoring support. Intensive work on preparing and testing their business ideas

preceded the event, resulting in outstanding quality of ideas presented.

Eleven teams were selected to participate in the event and all eleven were awarded access

to seed investment and mentorship support, with five of them required to conduct further

adjustments to their business model prior to registration. Final decisions were not based

purely on the three-minute pitch from this event but were rather part of a longer process.

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Namely, all members of jury got an opportunity to hear 20-minute presentations from all

teams one week before the Demo Day 2.0 event, giving ample feedback to teams on the

quality of background work done to that point (market research, production and financial

planning, business model development, etc). This gave teams an opportunity to re-work

some conclusions and consider once again whether their ideas are suitable for the next

step of incubation – registration of business.

Business brief documents, as one of the most valuable tools for the jury to familiarise

themselves with the business mode, sales and financial projections, have also been

significantly improved for this event, and we plan to advance them further based on

feedback from Deloitte consultants who are helping us re-work different processes within

the Incubator.

3.3.4. DEMO DAY 3.0

Mozaik in cooperation with Finance in Motion organized EFSE Entrepreneurship

Academy to support startups and young entrepreneurs in the business acceleration

phase. This Tournament was a great opportunity for social businesses to receive valuable

grants for acceleration of their businesses while presenting their work and potential

opportunities for growth.

30 start-ups applied for a Tournament and 22 teams selected who have the grow potential

to present to jury. After the presentations, the jury announced the winners in four

categories:

• Woman Entrepreneur Award: Winner of 3 000 EUR is Super Woman (Mozaik’s

incubator).

• Innovation Award: Winners of 3 000 EUR are Farmer.ba and Hurma Hanuma;

• Social Impact Award: Winners of 3 000 EUR are New Traficlight and Urban

Roofs (Mozaik’s incubator);

• Business Acceleration Awards: Winners: Tree D One 6 000 EUR, Play Learn

Grow - 6 000 EUR (Mozaik’s Incubator), Fedback 6 000 EUR, Herbs 10 000 EUR,

Axis 10.000 EUR (Mozaik’s Incubator, Dawood 10 000 EUR, Greens 10 000 EUR

(Mozaik’s incubator, AgroRevolution 10 000EUR (Mozaik’s Incubator) and

Freya Design 10 000 EUR.

18

3.3.5. SOCIAL BANKING PROGRAM

In December 2017 Mozaik signed a year-

long agreement with Sparkasse Bank (part

of the Erste Group), to conduct their social

banking project in the country. As part of

the agreement, Sparkasse Bank will offer a

maximum of five loans up to 10,000EUR to

social businesses. Mozaik Foundation, on

the other hand, will conduct a call for social

business ideas, and incubate the right

business ideas to the point of readiness to

enter a loan arrangement with Sparkasse

Bank.

A national call for applications was made in May, where 68 individuals applied from 24

towns and cities around the country, with 40% of female applicants taking part.

A jury made-up of Mozaik and Sparkasse Bank management selected 31 social business

ideas to be invited into the incubation process. Three of eight finalists of the program are

awarded with the loans: Igraj, uči, rasti; Safe Hand and Super Women, all comming from

Mozaik's incubator. This encouraged the Sparkasse Bank to rely on Mozaik's due

diligence process to reduce their risk and offer Mozaik to run year-long social banking

program through LONAC.

3.3.6. TRAINING AND EVENT PARTICIPATION

Mozaik continually invests in skills development and education of young social

entrepreneuers, whether using seed or pre-seed investment. During 2018, eight of our

teams and businesses attended 20 trainings and study visits.

3.4. BECOME THE REGIONAL GOLD STANDARD FOR SUSTAINABILITY AND SOCIAL

ENTREPRENEURSHIP

3.4.1. M-FUND – ENDOWMENT BUILDING

Endowment building strategy is one of pillars of Mozaik’s long-term sustainability. We

have signed the agreement with Mott Foundation for a matching grant of 500.000 USD

for the first 250.000 that we succeed to fundraise. Mozaik’s board has decided to put

Mozaik’s asset, the house we own in the old city, as contribution to endowment fund. Our

endowment fund is currently 495.135 USD.

Figure 12 'Korak po korak' is Erste Group's social banking project in the region

19

Entire amount is still at the bank account and we are exploring the best way to build our

conservative portfolio from this fund. We will inform Mott Foundation about our

decision.

We believe that our image as backbone organization to an ecosystem for support of social

entrepreneurs will enable us to fundraise additional funds from major donors,

individuals and companies to the endowment fund in the future.

3.4.2. REGISTERED MICROBUSINESSES

Mozaik provides opportunity for young people to receive a small grant and register their

microbusinesses, including employing one person. We came to this idea after realizing

that some of the social businesses that applied to our Incubator will not be able to make

enough revenue at the market to become a ltd. Microbusiness is the first step in the

development of their idea and we hope that this will become another pipeline to our

Impact Incubator.

We have opened call in LONAC from September 12th to 10th October, and in total 43 young

applicant (40% female, 60% male) applied with business idea for their microbusiness.

From October 12-14 in Sarajevo we

made preliminary selection of 43

applications with assistance of 17

board members of YouthBanks and

staff of Mozaik impact incubator.

Based on the recommendations of

selection committee applicants

additionally provided info in

applications, and 23 applicants

completed this process. Their business ideas entered the campaign for community voting

from November 7-13 and 15 of them got the necessary support. On December 10th Mozaik

signed 15 contracts to support the following microbusiness ideas:

http://online.fliphtml5.com/ihsr/wozl/

3.4.3. SOCIAL BUSINESSES IN MOZAIK’ S PORTFOLIO:

HTTP://ONLINE.FLIPHTML5.COM/IHSR/QLXN/

20

4. MOZAIK’S DEVELOPMENT

4.1. REGIONAL SCALING

In December 2018, Mozaik received additional grant from the Bosch Foundation to pilot

reginal scaling of Lonac to Croatia, Serbia and Montenegro. We will build this cooperation

on the strong foundation of cooperation with national foundations within sign and

creating new partnerships with other stakeholders who provide services to activists and

entrepreneurs in the region.

We were also invited to participate in the EU-Turkey funded project to build Network of

social entrepreneurs in Turkey, where Mozaik has an advisory role.

Foundation Mozaik as lead partner strengthen YouthBank model previous years in

Serbia, Croatia and since end of 2017 in Macedonia where we in partnership with Mladi

Info establish Network consist of 13 YBs.

We have partnership with Europe Foundation Georgia on supporting transfer know how

amongst YBs from Georgia, Abkhazia and Bosnia and Herzegovina.

Mozaik is active member of YouthBank International network (joined 23 foundations and

organizations that support over 225 YBs) and during 2018 we have shared best practices

including YBI forum in November in Istanbul, Turkey.

4.2. CEE REGIONAL IMPACT FUND

As the activities to implement various aspects of the Mozaik’s ten-year strategy unfolded,

we found ourselves at the onset of a critical phase for the full strategy implementation –

to secure a long-term financial, technical, and market infrastructure for the social

enterprises. This was a common area of concern for all social impact actors and

stakeholders in the Central and Eastern Europe. The financial infrastructure calls for a

long-term and a diversified source of funding. Currently, the CEE region is critically

lacking the right level and type of financial resources as only 35% of European resources

for social enterprises are spent in CEE and venture philanthropy investment is 65 times

lower in CEE than in Western Europe. Following a period of discussions dating back as

far as the 2015 EBRD Annual Meeting, this track became a focus of the policy work Mozaik

contributed to within the CEE Impact Investment Task Force organized under the

umbrella of the European Venture Philanthropy Association.

The fund is called MIF II Impact Venture Fund and it full documentation for its launching

is developed in 2018. We also secured the reserve fund of 125.000€ as well as readiness of

EFSE to participate in the fond. The first step is to secure structural funds from EIF and

we are still in the process of negotiation.

21

The MIF II will provide equity, quasi-equity and hybrid financing to European impact-

driven small and medium-sized enterprises (SME) and social enterprises whose products

resolve complex societal challenges while generating financial returns. The Fund will

invest in European seed and early-growth impact-driven SMEs, value-chain providers,

intermediaries, and social enterprises whose products and services target, reach, and

impact tens of thousands clients and beneficiaries. The MIF II will invest in the European

impact and venture markets, with a particular focus on the following countries: Albania,

Austria, Bosnia-Herzegovina, Bulgaria, Czech Republic, Croatia, Estonia, Greece,

Hungary, Kosovo, Latvia, Lithuania, Macedonia, Montenegro, Poland, Romania, Serbia,

Slovakia, and Slovenia. MIF II will make up to 40 minority investments from EUR 0.25 to

2.5 million that it will aim to hold for seven to ten years. It will focus on high growth and

high impact sectors: care and healthcare, financial services, sustainable agriculture and

food processing, clean energy and technology, community and education.

4.3. COMMUNITY BUILDING AND DATA ANALYTICS

Mozaik Foundation's programmes engage on a regular, annual basis over thousands of

youth from across BiH. Through different stages of the existing programmes, i.e.

YouthBanks and Impact Incubator, we collect data on their demografics, employment

status, professional ambition, propensity to risk taking as well as on the values that

underpin their professional behavior. Mozaik has employed Data Analyst in order to

make full use of the existing and future data in terms of improving the content of the

programmes, internal process flows and to better understand the needs of our

beneficiaries.

There are several ways in which this function aims to improve the performance of the

organisation:

1. Our M&E process will be fully internalised and integrated with other functional processes.

In previous years, we had to hire an external organisation to conduct our

monitoring and evaluation processes and this was costly, time and money wise.

External organisation was not able to understand the depth of our processes as

much as someone who is asign a role of internal researcher will through simple

everyday observation and data analysis.

2. Our impact statement will be supplemented with a clear, and internally owned impact

measurement methodology and tool kit. Mozaik has a very clear idea of what it will

achieve by 2026. To get there and be able to generalise on our findings we have to

have clear, theoretically supported and consistent methodology and indicators of

success. We will work on impact measurement on two levels: for the organisation

as a whole and for social businesses from our portfolio. Our social businesses will

also receive a clear guidelines on how to monitor, record and report on their social

impact by the end of each year. The end result of this should be a report that will

22

unite impact of the organisation on youth to the point of creating their social

business but also the impact on society of social businesses established through

Mozaik's programmes.

3. Our internal decisions will be fully data-driven. Programme activities are fully flexible

categories in Mozaik's programme. Adjustment to our activities will be done in

reaction to research findings rather than on an ad-hoc basis. Now we will

implement smart use of data to support all changes to activities carried our in order

to reach our end result.

4. Policy proposals resulting from real-time data. On/Offline community Mozaik is

embarking upon should provide us with access to real-time data on community

users. We will be producing policy proposals based on our observations of this

data.

5. Research to serve the improvement of the programmes and departments. Data analyst will

be very much related to marketing activities and functions but will aspire to serve

all other departments and programmes as well in order to improve on the process

and content delivery.

4.4. NETWORKS

In 2018 we continued with active participation on several networks: Grantmakers East

Forum, European Foundation Centre, SIGN Network and National Network for Building

Peace, NGO Council, EVPA… Mozaik has been elected to the governing council and

management committee of European Foundation Centre.

The regional SIGN network is won a second EU regional grant and we are implementing

the project SIGN Up for Impacy, led by Trag, while Horus, fAct, FIQ, Catalyst and Mozaik

are the partners.

Finally, we are investing a lot into developing strong non-formal network of social

business and business that can support our curriculum, competency model and

development of our social entrepreneurs. We are developing strong base of mentors who

can support our social businesses during incubation process.

5. CHALLENGES AND RISK MITIGATION STRATEGIES

Although we are very proud on the results Mozaik has achieved, the 2018 will be

remembered as a very challenging year, mostly due to two reasons that were out of our

control:

a) SDC support in the among of 50% of our annual budget was negotiated for mid-

June, when their 6-month support to develop full project proposal was ended.

However, due to complexity of the strategy and the fact that decision is made in

23

Bern and that this is the first time this instrument of co-funding is introduced in

Bosnia, we are still in the process of negotiation, with the “promise” that the last

meeting where only formal approval will be given, will be held on February 7th.

This support is of high importance for us, since it decreases a need for fundraising

and provides good basis for replication in the next 8 years. However, due to this

extensions, we had to decrease the salaries for three months (managers 20%, other

staff 10%)

b) Our technical partner for development of the software for LONAC seized to exist

in October. After many negotiations, in the contract termination procedures,

Mozaik succeeded to get the copy of the code (value of over 100.000 USD) and now

we are trying to organize the right team who will be subcontractors for

maintenance and development. We also succeeded to engage the product owner,

the most important person in the process of developing Lonac to test and prepare

the team of programmers for Mozaik.

24

Financial Report for Year 2018

Mozaik Foundation 1 EURO = BAM 1.95583

Financial Report for Year 2018 1 USD = BAM 1.68

Title Total BAM Total EUR Total USD

Grants 736,332 376,481 438,293

1 431,680 220,714 256,952

1.1. Social Innovation Projects - Youth Banks 360,793 184,471 214,758

1.2. Partners Support 60,781 31,077 36,179

1.3. Supporting transportation costs for young people 10,106 5,167 6,015

2 304,652 155,766 181,340

2.1.Lean Start-up grants - Social Business Incubator and Scale up grants - Accelerator

(Start-up)304,652 155,766 181,340

0 0

3 Staff (Salary and benefits) 894,062 457,127 532,180

3.1. Director 98,418 50,320 58,582

3.2. Executive Director 83,212 42,546 49,531

3.3. Director of Audit and Internal Control 79,708 40,754 47,445

3.4. Manager for Strategic Communications 68,812 35,183 40,960

3.5. Program Director/ Youth Banks 71,848 36,735 42,767

3.6. Grant Manager 36,922 18,878 21,977

3.7. Social Business Incubator Director 52,997 27,097 31,546

3.8.Coordinator for M&E, Impact Measurement and Curriculum Improvement / Data

Analyst38,596 19,734 22,974

3.9. Digital Marketing Coordinator - 9 months 24,634 12,595 14,663

3.10. Legal officer 40,863 20,893 24,323

3.11. Finance Officer I 33,852 17,308 20,150

3.12. Finance Officer II 30,734 15,714 18,294

3.13. Finance Officer III 28,962 14,808 17,239

3.14. Administration Officer 26,765 13,685 15,932

3.15. Business Development Mentor I 46,637 23,845 27,760

3.16. Business Development Mentor II - 6 months 20,680 10,574 12,310

3.17. Manager for Collective Impact - 6 months 21,194 10,836 12,615

3.18. Consultant - CIM Expert - part of the salary from Mozaik 16,886 8,634 10,051

Other employee expenses

3.19. Office Cleaning 12,759 6,524 7,595

3.20. Contracts - Business Development Mentor 20,314 10,386 12,092

3.21. Contracts - HUB Manager 12,950 6,621 7,708

3.22. Contracts - Interns 24,644 12,600 14,669

3.23. Provision for severance payments 1,675 856 997

4 Contracted services 511,049 261,295 304,196

4.1. Capacity Development in Local Communities (Training, Facilitation & Advising) 37,312 19,077 22,210

4.2. Capacity Development - Mentoring (Training, Facilitation & Advising) 98,871 50,552 58,852

4.3. Curriculum Improvement and Revision 5,284 2,702 3,145

4.4. Social Innovation Projects - Project Monitoring 19,598 10,020 11,665

4.5. Promotional, PR and Marketing Activities 46,887 23,973 27,909

4.6. Conference / Youth Bank 22,490 11,499 13,387

4.7. Promotional Events for Incubator(Kick-Off, Demo Day I, Demo Day II, DemoDay III) 114,509 58,548 68,160

4.8. Services Contracted for Techsoup 39,039 19,960 23,238

4.9. External IT Services (servers, Navision maintenance, IT desk support...) 43,826 22,408 26,087

4.10. Research and Development Services on On-Line Community) 14,669 7,500 8,731

4.11. Lawyers and notarial services 17,648 9,023 10,505

4.12. Web Designer 4,534 2,318 2,699

4.13. Audits 27,574 14,098 16,413

4.14. Translation, Interpreters 2,164 1,106 1,288

4.15. Annual Licenses for IT applications 3,699 1,891 2,202

4.16. Strategic Planning and Meetings of Board of Directors, Advisory Groups and Staff 5,292 2,706 3,150

4.17. Staff trainings 7,653 3,913 4,555

Social Enterprise

Community Development

25

5 Running Cost 271,640 138,887 161,690

5.1. Occupancy (Sarajevo, Banja Luka) 50,948 26,049 30,326

5.2. Utilities (Sarajevo, Banja Luka) 8,592 4,393 5,114

5.3. HUB 3,516 1,798 2,093

5.4. Office and Equipment Maintenance 9,029 4,616 5,374

5.5. Staff Insurance and Equipment Insurance 6,613 3,381 3,936

5.6. Vehicle ( maintenance, registration and insurance) 16,546 8,460 9,849

5.7. Communications 29,559 15,113 17,595

5.8. Office Supplies 14,121 7,220 8,405

5.9. Local Travel (Fuel, Accommodation & Per Diems) - Staff 30,042 15,360 17,882

5.10.International travel - Transport, Per diem, Accommodation (Conferences,

Networking, Training)56,309 28,790 33,517

5.11. Depreciation of Office Equipment 13,531 6,918 8,054

5.12. Depreciation of Agriculture Equipment 21,627 11,058 12,873

5.13. Depreciation of Vehicle Value 11,207 5,730 6,671

6 Other 180,567 92,322 107,480

6.1. Bank Fees 8,284 4,236 4,931

6.2. Membership Fees 14,921 7,629 8,882

6.3. Expenses for Taxes 13,272 6,786 7,900

6.4. Interest Costs 374 191 223

6.5. Property sale costs 135,000 69,024 80,357

6.6. Expenses of the previous years 7,462 3,815 4,442

6.7. Unexpected Expenses 1,254 641 746

FIXED COST - TOTAL 2,593,650 1,326,112 1,543,839

BAM Euro USD

1 REVENUE

1.1. Local, Federal and National Institutions support 224,901 114,990 133,870

1.2. Donor support 2,184,627 1,116,982 1,300,373

1.3. Donor support/equipment 43,873 22,432 26,115

1.4. Income generating activities ( Trainings) 10,996 5,622 6,545

1.5. Other revenue - (Reimbursement for travel expenses) 1,322 676 787

1.6. Other revenue (Bank interest and exchange rate) 12,497 6,390 7,439

1.7. Income from the sale of assets 135,000 69,024 80,357

1.8. Income from corrections from previous years 8,122 4,153 4,835

1.9. Other revenue (Compensation for insurance claim) 598 306 356

TOTAL REVENUE 2,621,936 1,340,575 1,560,676

DIFFERENCE 28,286 14,463 16,837

26

Income 2018.

Mozaik Foundation

1 EURO = BAM 1.95583

1 USD = BAM 1.68

Total Income 2018 BAM Euro USD

1 C.S. Mott Foundation 565,267.94 289,017 346,590

2 Robert Bosh Stiftung 244,478.75 125,000 145,523

3 Porticus/Stiftung Auxilium 176,024.70 90,000 104,777

4 Medicor Foundation 293,374.50 150,000 174,628

5 ZEIT-Stiftung Hamburg 195,583.00 100,000 116,418

6 Douglas Miller- CAFF American donor 143,130.14 73,181 85,000

7 Swedish International Development Cooperation Agency-SIDA 377,320.68 192,921 224,596

8 Federal Department of Foreign Affairs Embassy of Switzerland 77,432.00 39,590 46,090

9 Rockefeller Brothers Fund New York 70,359.62 35,974 42,000

10 Citibank Europe plc, Luxembourg (EFSE) 418,803.84 214,131 249,288

11 Local Authorities 222,959.00 113,997 132,714

12 Eurepean Union/ SIGN 74,646.21 38,166 44,432

13 Techsoup Foundation 64,422.39 32,939 38,347

14 USAID (Gorgia) 121,239.06 61,989 72,332

15 Philip Moriss BiH 84,353.90 43,129 50,000

16 Sparkasse bank 19,558.30 10,000 4,810

17 European fund for the Balkans 977.92 500 582

18 Individual donors ( Employees ) - M Fond 2,066.92 1,057 1,230

19 Income generating activities - Mladi info Skopje 6,996.46 3,577 4,098

20 Company 370.00 189 220

21 Income from the sale of assets 125,000.00 63,911 74,405

22 Other revenue (Insurance, interest, refund) 7,802.41 3,989 4,644

Total: 3,292,168 1,683,259 1,962,724

27

Balance sheet 2018 BALANCE SHEET AS OF DECEMBER 31, 2018

Year 2018 (1 USD = 1.68 BAM) 1.68

I ASSETS BAM USD

Fixed Assets 320,398 190,713

Furniture and Equipment (PCs, printers, furniture, video equipment and other office equipment) 12,743 7,585

Vehicles 21,314 12,687

Lifesaver water purifiers 40,863 24,323

Cold storage facilities for agricultural products 65,933 39,246

Software Lonac.pro 179,545 106,872

Long-term investments 117,395 69,878

Investment in EkoMozaik, MaSta and New Businesses (Equity) 116,825 69,539

Long-term loans 570 339

Current Assets 1,464,270 871,589

Cash and cash equivalents 1,334,869 794,565

Other current assets / Receivables from employees 4,237 2,522

Other current assets / Receivables from donors 12,077 7,189

Other current assets / Receivables from EkoMozaik 55,100 32,798

Other current assets / Receivables from NGO Alert 35,148 20,921

Other current assets / VAT refund 19,871 11,828

Advances paid for services and suppliers 2,968 1,767

Total assets 1,902,063 1,132,181

II LIABILITIES BAM USD

Short-term liabilities 110,407 65,718

Liabilities to suppliers 10,808 6,433

Liabilities to employees - salaries 32,062 19,085

Liabilities for service contracts 7,583 4,514

Liabilities for taxes, fees and benefits 39,775 23,676

Liabilities - accrued expenses - (audit services, and advances) 9,031 5,376

Other liabilities 11,148 6,636

Short-term liabilities / income received in 2018 543,721 323,643

Accrued income from donations for project expenses in 2019 543,721 323,643

Long-term liabilities 327,944 195,205

Accrued income from donations for projects / fixed assets 320,964 191,050

Loan from BH Telecom for mobile devices 2,160 1,286

Reservations for severance payments 4,820 2,869

Net Assets 919,991 547,615

Capital 88,165 52,480

Endowment fund 831,826 495,135

Total liabilities 1,902,063 1,132,181