ANNUAL REPORT

ANNUAL REPORT JANUARY 1ST– DECEMBER 31ST 2016

SARAJEVO, JANUARY 2017 1

CONTENT: 1. Short Summary 2. Strategic Statements 2015-2025 3. Programs and Activities 3.1. Empowering the Breakthrough Generation (Strategic Program) 3.1.1. YouthBank Program 3.1.2. Social Business Incubator 3.2. PRO-Future 3.3. SIGN for Sustainability 4. Mozaik’s Social Businesses and Income Generating 4.1. EkoMozaik ltd 4.2. MaŠta Agency 4.3. Techsoup Balkan 5. Mozaik’s Development 5.1. 5.2. 5.3. 5.4.

M-Fund – Endowment Building Activities Curriculum Development Marketing Activities Networks

6. Lessons Learned

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1. SHORT SUMMARY MOZAIK FOUNDATION is a social enterprise based in Bosnia and Herzegovina with a mission to identify, develop and support value-driven and innovative social entrepreneurs. We are committed to achieve our 10-year impact: “Between 2015 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.” Our impact is achieved through two interrelated programs: YouthBank, where we identify and support young social innovators and entrepreneurs through community grants. In 2016, 4.737 young people apply for our support. Through YB program, we supported 121 community projects, totaling 269.030 Euro. 44% of this amount was raised by non-formal groups and additional 34% Mozaik raised from municipalities. While young people implement community projects, we use in-house developed TestInvest methodology to identify value-driven youth with potential for social entrepreneurship. In our second program, Social Business Incubator, we incubated 13 social businesses and 7 are now active at the market. Mozaik invested into three of them. Through PRO-Future project, Mozaik granted 139 grants focused on reconciliation in local communities in total value of 290.000 Euro. Our annual budget was 1.573.789 Euro. In 2016, we finalized our curriculum that develops entrepreneurial competencies. 27 modules are developed and offered to young people through our programs. In addition, we provide intensive mentorship support through M-zone, our on-line learning platform. We established marketing team and succeeded to raise the positive image of Mozaik among general public, and attract almost 5.000 young people to apply for our programs. Regionally, we initiated Forum on Social Entrepreneurship and gathered main stakeholders for a meeting in Sarajevo. We developed Social Business Principles and promote it widely. Finally, Mozaik became full-time member of EVPA and governing council member at European Foundation Centre. Our activities at SIGN, GEF and Techsoup places Mozaik as an important player in the region. Beside our strategic partners, private foundations (Mott, Bosch, Porticus, UniCredit and Zeit) we developed new partnership with European Fund for Southeastern Europe and private US invester decided to support our strategy with 250.000 USD. All processes are tested and human resources ready for planned scaling in 2017. We entered into negotiation with Swiss Development Agency for 50% of our annual budget for the next three years, what will secure financial resources for scaling. 3

2. STRATEGIC STATEMENTS 2015-2025 2.1. VISION BiH as competitive regional economy with advanced social welfare system. 2.2. IMPACT STATEMENT Between 2015 and 2025 Mozaik Foundation will lead the development of a breakthrough 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, develop and support value-driven and innovative social entrepreneurs. 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: 1.000 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 entrepreneurs 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

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2.5. METHODOLOGIES 2.5.1. HORIZONTAL – THE EMI METHODOLOGY: The EMI (Education, Mobilization and Impact) community driven methodology is building social capital and mobilizing local resources to address important community problems. This methodology represents the key to Mozaik’s success in community mobilization; it stands behind the impressive results of the YouthBank history. Mozaik is using and improving this methodology since 2004. 2.5.2. VERTICAL – THE TEST-INVEST® METHODOLOGY Test-Invest® is a ladder-structured and pyramid-shaped methodology that, through EMI methodology, tests youth at community level to identify the most promising value-driven leaders, innovators and entrepreneurs. This is a new methodology developed by Mozaik with trademark in the EU. It consists of analytics, competency model and curriculum. 2.6. PROGRAMS 2.6.1. YOUTHBANKS PROGRAM Mozaik is implementing YouthBank program in BiH since 2008, and with partners in Serbia (Divac Foundation) and Croatia (European Foundation for Philanthfopy and Civily Society Development) has started regional expansion. Mozaik will provide a safe and supportive environment to 50.000 youth, first to identify and later develop their entrepreneurial skills. We will continue advancing communities through at least 1.000 youth-led community projects and use them as the testground to assess values, potential, innovation and entrepreneurial skills. YouthBank consists of capacity building, assessment tools, innovation tournaments and youthled social innovation projects that mobilize local communities. 2.6.2. SOCIAL BUSINESS INCUBATOR Social Business Incubator provides safe and supportive environment to the most promising youth to further advance through our competency model and curriculum. It works in symbiosis with YB: most promising, value-driven and innovative social entrepreneurs, whose capacities and skills were developed and proven through the youth–led social innovation projects, are invited to join the Incubator. 2.6.3. M-CLUB PROGRAM Social entrepreneurs who establish their social business and are successful will be invited to join M-club, alumni network of Mozaik’s strategy that will have strong group identity. This group will be well promoted to reach as many youth as possible and inspire them to do good and become social innovators and social entrepreneurs. 5

3. PROGRAMS AND ACTIVITIES 3.1. EMPOWERING THE BREAKTHROUGH GENERATION (STRATEGIC PROGRAM) The project “Empowering the Youth Breakthrough Generation” is our strategic program, that leads to our promised impact. After successful piloting in 2015, in 2016 we increased our outreach, developed all necessary human and material resources and offered support to almost 5.000 young people throughout the country. We are proud that several private foundations and local governments recognized potential of this endeavor and decided to support Mozaik financially for mid- to longterm: the Robert Bosch Stiftung (450.000 EUR), the Porticus GmbH (450.000 EUR), and 100.000 EUR from BiH governments (Federal Ministry for Culture and Sport and 28 partner municipalities). In addition, Austrian Development Agency and Light for the World, our long-term partners, decided to support us in making our strategy fully inclusive. We build new partnerships with EFSE, UniCredit Foundation and private invester from USA. General support grant from Mott Foundation and income from USAID contract (GOLD) was also used to implement the strategy. Our approach consists of two interrelated programs: YouthBank is the first, where young people learn through our curriculum (on-line training, face-to-face trainings and learning by doing through social innovative projects), while constantly being observed through in-house developed Test-Invest® methodology. Young woman and man with the highest potential to become social entrepreneurs were invited to enter the second phase – Social Business Incubator, on-line incubator that provides full tailor-made support for identified youth in order to accelerate their development and development of their social business idea. Finally, these who will run successful social businesses, will be invited to M-club, alumni program with strong group identity and great promotion to become role-model for other youth in the country. During development of the strategic orientation and implementation of the pilot phase, Mozaik had great support from the US Deloitte consultants (pro-bono worth of 2,5 million USD).

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3.1.1. YOUTHBANK PROGRAM 3.1.1.1. CURRICULUM DELIVERY M-zone Curriculum of 26 modules follows the logic of two interrelated programs. It also integrates Test-Invest and M&E tools, in order to optimize processes. In 2015, Mozaik engaged Curriculum Advisory Board, composed of eight national and international experts to develop the curriculum framework. The Curriculum Board has agreed that curriculum development is an on-going activity and that curriculum needs to be continuously adapted according to the findings of M&E. In 2016, Mozaik engaged curriculum development expert who finally developed 26 courses based on the framework developed by experts. 19 of them are on-line and uploaded on M-zone, Moodle learning platform that links both programs, enables curriculum delivery and build on-line community. During the reporting period, 23 courses are developed and 17 are uploaded to Moodle. Based on this year experience and results from M&E, we are already developing plan for improvement of the M-zone for the third generation. We continue strategic partnership with Promente, leading NGO in socio-economic research to implement three interrelated activities: a) upload and maintain M-zone on Moodle platform b) improve and implement Test-Invest methodology c) implement monitoring, evaluation and Impact Assessment. Based on the lessons learned, we have decided to shorten the cycle from 18 to 13 months, where every cycle will start in March with the public call and end in April next year, with DemoDay II.

3.1.1.2. SOCIAL INNOVATION TOURNAMENT – TRAINING FOR FACILITATORS AND JUDGES Intensive training to advance the responsibilities of 20 facilitators and 20 judges at the Social Innovation Tournament and to strengthen their skills was organized from 7-9th of May in Sarajevo.

The Training combined theoretical approach, interactive workshops and role-play during tournaments, with intensive usage of IT technology. Youth facilitators, judges and Mozaik staff were trained for the next phase. Additionally, IT support and social 7

justice advisors have participated in this training. Mozaik prepared the handbook for Social Innovation Tournaments with in-detail defined processes and individual responsibilities of facilitators, judges and advisors.

3.1.1.3. SOCIAL INNOVATION TOURNAMENTS During open call for M-zone from 14th March to 14th of April, 4.737 youth have registered and they got the opportunity to pass two on-line courses (I have a Dream and Social Innovation). Our public campaign in Bosnia and Herzegovina “100 opportunities for 100 ideas!” (please, see https://www.youtube.com/watch?v=zSA_p_60h8Y) reached our expectations. Mozaik put additional effort to make everything on M-zone accessible (our promotional videos include sign language interpretation) and number of people with disabilities registered for the program was 157. We also tried to increase number of women who apply for M-zone by using gender sensitive language, female role-models and carefully designed messaging. Finally, the per cent of women applied increased for 4% (from 38% to 42%). Percentage of women is even higher in next stage of the program, 45% in comparison to 35% from last year. In total, 1.429 young people went through two on-line courses on social innovation and envisioning future, and passed all tests in Test-Invest methodology, where we tested their values and competencies in order to invite and lead them to the next stage. 1.395 young people formed 241 teams (non-formal groups were from 54 municipalities/ cities) until 30th April, and they got invitation for social innovation tournaments (competitive and collaborative process to develop their social innovative ideas and present them in the front of youth judges). Mozaik staff has identified potential tournaments locations in municipalities (schools, cultural centers, sports venues, municipal premises) that could accommodate up to 150 people per event. All 10 tournaments were successfully implemented from 13st to 29th of May 2016 in Sarajevo, (please, see short video: https://www.youtube.com/watch?v=cx7srqtH4bI) Banja Luka (you could see short video: https://goo.gl/RO3cSw), Bugojno, Bosanska Krupa, Lopare, Novi Grad, Mrkonjic Grad, Modrica, Doboj Jug, and Zavidovici. These full-day events were implemented with support from Mozaik staff (10), municipalities and youth representatives from the boards who had roles as facilitators 8

(19), judges (20), social justice advisors (10) and IT support (4). Majority of them were engaged on 4 and more tournaments. During highly demanding process, young people were using technology to facilitate the process from idea development to its selection.

Photos made during Social Innovation Tournament in Banja Luka (Ms. Jasmina Davidovic-Minister (Ministry of Family, Youth and Sports RS) signing Memorandum of Cooperation with Foundation Mozaik upon opening speech of Vesna Bajsanski-Agic, Executive Director; final presentation of one group in front of panel of judges; Group photo at the end of Tournament)

Mozaik staff as counselors of tournament leaded the whole process. Trained facilitators and advisors supported youth groups to draft their ideas, from problem to solution. The second part of the training included learning on transformation of good idea into story and preparation of the pitches in front of judges. The third part of tournament was completely dedicated to pitches. Every team had 5 minutes for presentation, followed by 5 minutes for judges’ questions. IT support was crucial for speeding up processes of developing ideas by youth, preparing presentations, scoring and making reports. Finally, at the end of every day, reflection and evaluation meeting of Mozaik staff with facilitators, advisors, judges and IT support was held. After cleaning the venue, we packed all materials and traveled to the next municipality.

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Finally, 679 young people (324 female and 355 male) from 42 municipalities all over BiH participated in tournaments – at least four members from every of 152 non-formal groups that attended the tournaments. We were hoping for higher number of participants at the tournaments, however, most of the groups could not provide all 5 or 7 members at the tournament due to personal or professional obligations. We were flexible in appointing date and/or place of the tournament and we set it according to their requests– every group could decide if they want to attend tournament on another date or in another city. Photos made during Social Innovation Tournament in Novi Grad (atmosphere during tournament, facilitator in action/supporting process and happy faces of facilitator with group which project idea was awarded by judges).

Social Innovation Tournaments in Numbers Date

City/ municipality

No. of teams participated

No. of team members participated F

M

M+F

Teams were coming from 42 cities/ municipalities Banja Luka (5), Doboj (3), Kozarska Dubica (4), Novi Grad (1), Srbac (1) Novi Grad (20), Kozarska Dubica (3), Kostajnica (1), Prijedor (1) Bosanska Krupa (6), Cazin (6), Bosanski Petrovac (4), Bihac (1), Novi Grad (1)

13.05.

Banja Luka

14

43

22

65

14.05.

Novi Grad

20

43

40

83

15.05.

Bosanska Kupa

18

38

41

79

16.05.

Mrkonjic Grad

13

34

29

63

Mrkonjic Grad (9), Sipovo (4)

21.05.

Sarajevo

18

48

32

80

Sarajevo (7), Gorazde (5), Kladanj (4), Visoko (1), Zenica (1)

10

22.05.

Bugojno

13

17

37

54

26.05.

Zavidovici

15

33

40

73

27.05.

Lopare

9

16

23

39

28.05.

Modrica

13

26

30

56

29.05.

Doboj Jug

19

26

61

87

TOTAL

152

324

355

679

Gornji Vakuf-Uskoplje (2), Bugojno (2), Konjic (4), Novi Travnik (3), Maglaj (1), Fojnica/Busovaca (1) Zavidovici (5), Zepce (7), Zenica (1), Olovo (1), Visoko (1) Lopare (4), Sekovici (2), Vlasenica (1), Zvornik (1), Bijeljina (1) Modrica (7), Odzak (2), Vukosavlje (1), Gradacac (1), Zivinice (1), Kozarska Dubica (1) Doboj Jug (2), Doboj (1), Tesanj (8), Zivinice (1), Usora (4), Srbac (1)

Non-formal groups that win support at SIT have had two weeks to pass two more online courses (How to mobilize local resources and How to develop project) and only then submit their idea in the form of project proposal through M-zone. All projects of winners that satisfied these criteria was officially approved and have been proceed to signing contracts with Mozaik. It is important to emphasize that 90% of approved projects have inclusive character – actively include marginalized groups in planning and implementation. This was challenging task for some groups and process completed 126 non-formal groups from 35 municipalities /cities. 3.1.1.4

SOCIALLY INNOVATIVE PROJECTS – COMMUNITY ACTIONS

Mozaik has signed agreement with 126 non-formal groups from 35 municipalities and cities which projects have been awarded. 110 non-formal groups were from 25 municipalities that as partners financially co-funding program and projects. 16 nonformal youth groups were from 10 municipalities and cities with which Mozaik did not have any agreement for co-funding projects. Total value of approved projects was 281.929 EUR, where young people secured in-kind and cash contribution in the amount of 122.343 EUR (42%). Mozaik’s contribution was 64.127 EUR from donors (Robert Bosch Stiftung, Porticus, Light for the World and Balkan Trust for Democracy) and 95.459 EUR from governments (25 municipalities and Ministry for culture and sport F BiH). With each of 126 groups Mozaik signed the agreement at the ceremonies in municipalities, and project implementation period was July 1st to September 30th 2016.

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Photos (including traditional municipal mayor’s “selfie”) from ceremony in municipality Bosanska Krupa.

While they were implementing projects, youth had a chance to pass in M-zone three online courses to enable successful project development and local resource mobilization. At the same time, through our Test-Invest® methodology, young people were assessed to identify these with the right values and desired competencies. During implementation every youth group was visited by trained youth monitors, Mozaik staff and representatives of municipalities. M-zone has been used by members of youth groups and Mozaik for reporting and analytics. Out of 126 awarded projects, 121 groups successfully completed all planned activities. Mozaik has terminated contracts with 5 groups as they fall apart and did not start with the project implementation.

No. of municipalities and cities No. of implemented projects

Type of implemented youth projects

35

121

TYPE OF IMPLEMENTED PROJECTS (This selection has a purpose to present general areas. Several projects have some activities overlapping in two areas) Improving conditions for youth engagement in sports and recreational activities

Arranging spaces for youth activities

Cultural and educational activities

Ecology and environment protection

Other activities

31

26

27

21

16

Statistic overview of implemented projects

TOTAL

No. of realized projects

Total project value (EUR)

121

269.030 (100%)

Contribution by non-formal groups (EUR) 117.744 (43,77%)

Mozaik from governments resources (EUR) 91.697 (34,08%)

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Mozaik from donors (Robert Bosch Stiftung, Porticus, Light for the World and Balkan Trust for Democracy) (EUR) 59.589 (22,15%)

Statistics on voluntary engagement in implementation of projects

TOTAL

3.1.1.5

No. of projects

No. of volunteers

F

121

1.207

485

M

No. of voluntary hours

No. of beneficiaries

722

14.357

27.064

No of Beneficiaries with special needs

1.030

PROMOTION OF PROJECTS’ RESULTS

After implementation of youth project we organized ceremonies in municipalities aiming to promote achievements and results of supported youth projects at municipal level. These events were hosted by governmental representatives and board members who were welcoming youth groups, and other stakeholders from communities who supported the actions. For these events we have prepared and printed posters of successfully implemented projects to promote results and increase of support provided by our donors and partners. In addition, we have provided certificate of achievements for youth groups, board members, and stakeholders that have provided additional contribution to youth projects. Photos made during ceremonies in municipality Cazin and Kostajnica (one of the 7 new partner municipalities that will co-funding program from 2017)

Recognition of youth engagement and achieved results at local level is very important for all stakeholders, and involvement of municipal mayors enable easier budgeting of funds for youth programs for next year. 3.1.1.6

COMMUNITY TRAININGS AND TOT

During the implementation of the community actions, 15 youth board members from 15 municipalities were trained to deliver trainings for members of non-formal groups who implement community actions.

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Mozaik lead trainer and curriculum manager Ms Eni Kurtovic was responsible for preparing and delivering ToTs with assistance of other Mozaik program staff. We were organizing training from 7th to 9th July in Sarajevo.

Implementation of community trainings provided additional knowledge to selected youth groups for more active engagement in communities. In addition, through Test Invest enabled Mozaik could recognize based on the activities, dedication, efforts and assessed competencies and values the most promising youth for entering to next phase. Trainers have been evaluated their trainees and reported Mozaik about trainings implementation, and as well trainees evaluate work of trainers. Both online evaluations provided to Mozaik useful information about the most promising youth. From 22nd July to 4th August trainers have been organized and implemented 22 community trainings with participation of 355 (F 185 and M 170) members of 112 nonformal groups.

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3.1.1.7

PROMOTIONAL EVENT: NATIONAL CONFERENCE

In order to promote achieved results of youth non-formal groups that were jointly supported by donors, Mozaik, local governments and Ministry, Mozaik organized from 12th to 14th November national conference. We have decided to organize it together with Demo Day I in order to promote candidates for Mozaik Social Business Incubator among our target group and introduce new possibilities for cooperation to local authorities.

Mr. Zoran Puljic, Director of Foundation Mozaik addressing the audience at the national event 200 young people, judges, facilitators, trainers and representatives from 25 municipalities were discussing achieved results during 2016, and topics that are important for successful implementation of our strategy in 2017/2018: The focus was on Social Innovation, Social Inclusion and Social Businesses. National conference was finalized with the public ceremony to promote Mozaik results in 2016 and announce 7 teams who won at the Demo Day I and entered into Mozaik’s Social Business Incubator. The event was organized in hotel Hills and gathered over 200 participants from partner NGOs, media, local and entity government, donors and youth.

During this event Mozaik has appreciated to partner municipalities for previous support of youth bank program and youth projects, and signed Memorandum of 15

cooperation with 32 municipalities (25 old partner, and 7 new partner municipalities) that will provide up 260.000 EUR for youth projects. In addition, Mozaik signed Memorandum of cooperation with two biggest youth organizations with aim to strengthen youth participation and entrepreneurship in BiH, Youth Communication Centre and Youth Council of Republika Srpska.

3.1.1.8

REGIONAL DEVELOPMENT OF YOUTHBANK MODEL

Foundation Mozaik as lead partner strengthen YouthBank model in Serbia with Divac Foundation (financial support from Balkan Trust for Democracy), in Croatia with Europe Foundation for Philanthropy and Society Development (http://europskazakladafilantropija.hr/en/ ) with financial support from National Foundation for Civil Society Development. In addition in partnership with Europe Foundation Georgia we are supporting transfer know how amongst youth from Georgia, Abkhazia and Bosnia and Herzegovina.

3.1.2. SOCIAL BUSINESS INCUBATOR Mozaik Foundation offers extensive business development support to prospective young social entrepreneurs who advance through the previous stages of the programme. Mozaik Foundation’s Social business incubator lasts for approximately six months and is organized around two distinct phased: Business Innovation Tournament and Prototype testing phase. During the first phase, start-up teams need to develop and validate their social business concept using tool such as social business canvas. After successful concept validation, the most promising teams are awarded with pre-seed investment used for prototype development and testing during the next stage of incubation. The final event of this second phase is Demo Day II when teams pitch their social business idea to an investment committee which decides in which of these businesses Mozaik Foundation will invest. Within a period of one calendar year, two cohorts and incubation cycles overlap with one cohort finishing their prototype testing phase during spring time and new cohort entering incubation in October. The 2015 campaign attracted close to 3.000 people. Out of that number, 20 team leaders were invited to join Business Innovation Tournament in October 2015 and compete for pre-seed investment. Out of that number, ten teams were selected for prototype testing phase. Eight teams in total completed incubation and pitched at the Demo Day II in June 2016.

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Finally, selection committee decided that three businesses were investment ready and Mozaik proceeded with the registration process for Play Learn Grow in Tesanj, Steady hand in Bosanska Krupa and Agrorevolution in Cazin. While the 2015 cohort was gearing up with their businesses, the new 2016 cohort was enrolled in the M-zone of social entrepreneurship and new 28 leaders were invited to join Business Innovation Tournament in October 2016.

3.1.2.1. BUSINESS INNOVATION TOURNAMENT 2016 Following completion of the courses in M-zone and successful implementation of community projects, our internal team invited 28 prospective social entrepreneurs to enter Mozaik’s social business incubator. They were selected from among 125 youth who, together with more than 250 team-members, led implementation of 121 community projects from July to September 2016. The selected youth were all invited to come to Sarajevo for the Kickoff workshop which served as a simulation of the first phase of incubation. 3.1.2.2. BIT KICKOFF WORKSHOP The BIT process started with a two-day Kickoff workshop, held from 7-9 October 2016 in Sarajevo. Twenty eight team leaders were pre-selected and invited to take part in this workshop. The goal of the Kickoff workshop was to jump-start the creative social business planning process and gear up for the BIT process that commenced immediately thereafter. The event was divided into specialized segments that covered a range of topics from Empathy, Design Thinking, Lean Startup, Business Canvassing, Pitching and Social Business planning.

The main aim of this two-day event was to allow youth to be better acquainted with the types of social businesses that are being developed through Mozaik’s social business incubator and to understand the process of business development given that the incubator is virtual. Some participants decided to team up with their colleagues and work jointly as a team through the incubation process while others decided to find new teams in their local communities. A total of 23 youth appeared at the event on October 7th and they attended the whole workshop for the following two days. A total of 16 social business teams decided to go through the new cycle of incubation. Our mentors worked with them extensively for five weeks to prepare them for Demo Day I, a pitching event held on November 12th, 2016. During this process, teams had very clear milestones that needed to be achieved. 17

A total of eleven (11) teams completed the first phase and pitched at Demo Day I on November 12th 2016 for a chance to win pre-seed investment to build and test their prototype. Those who manage to secure their place in the second phase of incubation have received further mentorship assistance and up to 1.500,00 EUR to build and test their prototype. The following are the teams that pitched their ideas at the Demo Day I: Team leader name Social Business Idea Location Lejla Spahić Designing and producing cotton Bosanski female fashion bags Petrovac Mevludih Hodžić Producing wooden pellets Busovača Nađa Zubčević Antibacterial toilet seat cover Sarajevo Nebojša Mićić Animation whiteboard Doboj Šejla Hota Nutritious chocolates Olovo Selvedina Sivić Legal affairs agency Cazin Vanja Josić Mobile pharmacy Banja Luka Vedrana Đurđević Dental care Doboj Nataša Erić Collection of children’s educational Zvornik games Tamara Jović Cleaning agency Zvornik Dino Bešić Modular reservoirs: regulating water Sarajevo reductions and water shortages Six teams that won pre-seed investment attended kickoff workshop on November 13th, 2016 with two main topics of focus: professional communication skills (one four-hour long session) and tools of effective sale (another four-hour long session).

3.1.2.3. TEAMS IN MOZAIK’S INCUBATOR Out of eleven teams that were deemed ready to present their business proposals to the judges, Mozaik decided to invest funds for prototype testing in six teams. These prospective social entrepreneurs are currently working with a team of mentors who guide development and testing of their prototypes. Furthermore, fellows are supported by business relevant online curriculum which assists development of their businesses.

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The following is the table of currently incubating businesses from 2016 cohort: Soc. Business Name 1

Superžena

2

Mislilica

3

4

ARQUA

Laboratorija ideja

5

AD AKTA

6

MadamEl Bags

Business Sector Employing women over 40 years of age and with low educational qualifications Ensure balanced social, emotional and intellectual development of children through play and learning. Ensure proper water management in the face of water shortage. The team has a potential patent in their first product – this is currently under investigation. Their first product, a toilet seat coating that destroys 98% of bacteria on toilet seats is aimed at providing better hygiene conditions in toilets and is aimed for public spaces such as hospitals, shopping malls, kindergartens, etc. They filed patent search in Sarajevo and look for patenting their product over the course of next year. Employing law graduates who have been unemployed for longer periods of time; assisting the sector of small businesses in development by allowing them to outsource some of their legal needs to Akta. Using natural materials and employing local designers to produce fashionable bags for women.

Location Zvornik

Zvornik

Incubator Y

Y Y

Sarajevo

Y

Sarajevo

Y Cazin

Bihać

Y

In April 2017, these businesses will be competing for seed investment of up to 7500 EUR. Those that receive this investment will be further supported by Mozaik’s staff in registering their companies and making them operational on the market. THE MAIN ACHIEVEMENTS OF MOZAIK THROUGH THE STRATEGY PROGRAM After the pilot year of implementation of our strategy, we refined our 10-year indicators, realizing that we can achieve our impact with lover level of activities and lover number of beneficiaries. That was great finding, since it requires fewer inputs to achieve desired impact. Piloting enabled us to establish new partnerships with respectful international, regional and national organizations what will ensure collective impact (Social Entrepreneurship Academia, Munich; Social Impact GmbH, Berlin; Institute for Social Pedagogic Research, Mainz; Ashoka Austria; Promente – Center for Social Research, Sarajevo, Dokukino – 19

BiH, Serbia, MNE, Kosovo; Impact Hub, Vienna; Networks, Sarajevo; Yunus Social Business Balkans, European Foundation for Philanthropy Development, Croatia; Divac Foundation, Serbia; mladi.info, Macedonia; etc.) We have succeeded to assemble eight experts in Curriculum Development Advisory Board who developed 21 modules to strengthen competencies and accelerate development of young social entrepreneur’s. 10 videos for on-line learning were filmed, Test-Invest methodology is tested and areas for improvement identified to allow costeffectiveness of our approach. Almost 3.000 young people register to M-zone, curriculum framework for all Mozaik’s activities. Out of them 1.800 were identified and invited to Social Innovation Tournaments (SIT) to develop their social innovative project ideas (234 non-formal groups). Social Innovation Tournaments were organized in 25 municipalities and 176 projects were approved by young trained judges. During the tournaments, young facilitators supported non-formal groups in developing their projects. Youth groups successfully implemented 165 projects with active participation of 1.756 young people from 28 communities. Total value of approved projects was 301.185 EUR, with great community support - young volunteers secured 55% (166.209 EUR) of in-kind and cash contributions. Project’s contribution was 134.976 EUR (95.208 EUR from BiH governments, 37.497 EUR from ZEIT Stiftung, and 2.271 EUR from Bosch Stiftung). Capacity building on leadership (537 participants), professional (483 participants) and entrepreneurial competencies (450 participants) provided great opportunity for TestInvest methodology to identify and accelerate development of young people with the highest potential, while ensuring that those who will not advance through the program this year have opportunity to learn new, useful and employment-related skills from their trained peers. 3.2. SIGN FOR SUSTAINABILITY In 2016 regional SIGN Network consisting of Trag from Serbia, Horus from Macedonia, fAct from Montenegro, National Foundation for Civil Society Development from Croatia, FIQ from Kosovo and Mozaik Foundation has entered in the last year of fouryear EU funded project “Sign for Sustainability”. This project has aimed to promote local philanthropy, local communities and long term self-sustainability of civil society in six countries of South-East Europe. Partners organized specific set activities aiming to create enabling legal environment for more individual and corporate philanthropic givings; promote transparency of CSOs to 20

increase support and engagement of citizens in CSOs actions; and transfer of best practices for philanthropy through national and regional CSO networks. In Bosnia and Herzegovina (BiH) Mozaik continued implementing activities strengthening the concepts of individual and corporative philanthropy locally. Thus five organizations that were part of Regional Sustainability Academy, which empowered grass root organizations to promote and develop individual and corporate philanthropy on community level, managed to collect 19.600 EUR from 56 companies and 215 individuals. For this they received matching grants from Sign for Sustainability project in the amount of 20.000 EUR to implement their ideas. Out of five organizations two were exceptionally successful exceeding the foreseen donations. Advanced knowledge and gained experience about mobilization of local resources from individuals and companies helped them expend and diversify their donor base but also promoted needed trust for development of philanthropy. Aiming to create more enabling environment for corporate giving Mozaik together with Trag implemented a survey on the usage of the existing donations tax incentives in BiH trying to identify possible obstacles to their full implementation. The survey was conducted by Catalyst Foundation in BiH and Serbia. The research primary dealt with the implementation of the Legal Entity Tax Laws and involved companies, Ministry of Finance and Tax Administration in both entities of BiH. Based on the results of this survey for BiH, which showed that donation tax incentives were not fully utilized, Mozaik with the support of legal experts defined recommendations aiming to achieve better use of laws affecting philanthropy and submitted them to Ministry of Finances of Federation of Bosnia and Herzegovina and Republika Srpska. Additional advocacy efforts towards these recommendation will be made before the end of project. Besides the aforementioned recommendations, the Manual for Implementation of Standards for fundraising was finalized in 2016. It focused on helping CSOs to get a clearer picture of what each standard for fundraising means in particular and how achieving the standards could be assessed, monitored and evaluated. Therefore Mozaik organized events called Philanthropy and Society: Investment in Future, one in Sarajevo and other one in Banjaluka, to promote the Standards for transparent fundraising, Manual for implementation of those Standards and the recommendations for better use of donation tax incentives. The aim was to make better links between CSOs and business sector based on transparency, trust and common objectives. The events gathered more than 90 representatives of businesses and CSOs. They primary served for expanding the number of signatory CSOs of Standards for transparent fundraising – so far almost 200 organizations regionally, out of which 60 from Bosnia and Herzegovina, pledged to 21

these Standards for transparent fundraising determined to communicate their work in more transparent fashion. At the end of 2016 Mozaik took part at the closure conference of the SIGN for Sustainability project which was held in Podgorica. The conference gathered representatives of civic sector, business and public sector, from five countries from the region, in order to contribute to better cooperation and dialogue on institutional frame and alternatives for more sustainable funding and work of CSOs. Delegation from Bosnia and Herzegovina consisted of Member of Parliament, representative of grass root organization and social entrepreneur. Finally Mozaik has initiated the production of Monitoring report covering all legal changes in tax laws affecting philanthropy in all five partner countries respectively BiH, Kosovo, Macedonia, Montenegro and Serbia. The report will be finalized at the beginning of 2017. Main achievements of Mozaik through this program:  Increased capacities of five grass root organizations which received five matching grants.  Promotion of existing legal framework and advocacy for better use of the legal framework for philanthropic givings.  Transferred and promoted know-how and best practices for philanthropy, CSR and local resource mobilization.  Promotion of philanthropy as a community engagement focused on transparency and long-term development.  Regional and national cross-sectorial partnerships. 3.3. PRO-FUTURE PRO-Future (Trust, Understanding, Responsibility for the Future) is the largest USAID activity on reconciliation in BiH, implemented by Catholic Relief Services, in partnership with Mozaik Foundation, Caritas Bk BiH, Forum of Tuzla Citizens, and Helsinki Citizens Assembly, Banja Luka. Together with all other partners, Mozaik Foundation is obliged to contribute to the following project outputs in PRO-Future project: - Citizens of B&H, particularly youth, women and minority returnees, from different ethnic communities have skills and financial support to cooperate across ethnic lines

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-

Local NGOs have the skills and resources to conduct local advocacy promotions or reconciliation promotions

The main responsibility of Mozaik Foundation is providing grants for formal and nonformal groups through 6 different funds: Youth Initiative Fund (PRO-Active Fund), Solidarity Fund, Fund for NGOs, Fund for Women’s role Empowerment in Reconciliation processes, Fund for Churches and religious organizations and Fund for War victims’ organizations. In the last year, Mozaik Foundation invested BAM 529.009,69, in order to build trust and confidence among citizens of all ethnic backgrounds as well as to empower citizens to advocate for social changes in society. Table 1. Achieved results in 2016 (the third project year) Type of fund Solidarity Fund PRO-Active Fund Fund for NGOs Fund for War victims' organizations Fund for Churches and religious organizations Fund for Women’s role Empowerment in Reconciliation processes TOTAL VALUES (Y3)

# of the grants

Amount in BAM

12 84 19

104.048,02 137.446,39 203.177,40

Local contribution in BAM n/a 70.255,25 82.702,80

7

19.782,01

4

# of direct beneficiaries

# of indirect beneficiaries

# of males

# of females

105 2159 114

n/a 2310 n/a

73 1451 48

32 708 66

6.850,33

121

1300

98

23

10.587,00

4.657,11

123

750

77

46

12

53.968,87

30.872,00

703

4943

135

568

138

529.009,69

195.337,49

3325

1882

1443

9303

Solidarity Fund – The funds are allocated to bh. citizens (non-formal groups) for implementation of the projects that directly targeted flood affected areas, in order to promote the importance of reconciliation and to support needs of flood affected communities in PRO-Future communities. Pro-Active fund (Youth Initiative Fund) – The funds are allocated to non-formal youth groups (aged 15–30) for the projects led by youth and run to address the building of reconciliation and trust in the communities involved in the PRO-Future project. The National Youth Bank Board (NYBB) members are responsible for the selection process. Small Grants for NGOs - intended for funding reconciliation efforts/advocacy activities that build on commonalities, which in turn will help make communities stronger and more stable. Mozaik Foundation created and published two calls for NGOs up to now. 23

22 projects in total amount of BAM 239.094,46 are supported in the scope Fund for NGOs. Small grants for War victims’ organizations - intended for strengthening the role of associations of war victims in the reconciliation processes in PRO-Future communities. Small Grants Program for churches and religious organizations– The funds are allocated to religions organizations (from the towns/municipalities involved in PROFuture) for the projects addressing reconciliation and trust in the communities involved in the PRO-Future project. Small grants for Women's Reconciliation/Advocacy Initiatives - the funds are focused on strengthening of women’s role in the reconciliation process in PRO-Future communities. Mozaik Foundation and PRO-Future team is very proud for all results achieved in more than 30 PRO-Future communities and shorty summary of results is visible in Table 2. Grant type

# of the grants

Amount in BAM

Local contributio n (BAM)

% of the local contribution

# of direct benefic iaries

Number of males

Number of females

# of indirect beneficiaries

Solidarity Fund

76

586.146,99

0,00

0,0%

1167

810

357

67729

PRO-Active Fund

105

171.853,75

88.843,45

52,25%

3689

2451

1238

6535

NGO grants

22

239.094,46

99.352,80

41,55%

389

184

205

304

War victims fund

14

46.632,01

16.230,33

34,80%

161

121

40

1300

Religious groups fund

7

18.053,00

7.457,11

41,31%

138

85

53

750

39

324.013,56

140.699,25

43,42%

2145

359

1786

18623

1

3.000,00

1.000,00

33,33%

128

64

64

2000

264

1.388,793,77

353.582,94

25,56%

7817

4074

3743

97241

Women's Reconciliation/Advocacy Initiatives Parent School Councils fund Total

4. MOZAIK’S SOCIAL BUSINESSES 4.1. EKOMOZAIK LTD EkoMozaik is a social business owned by the Mozaik Foundation. EkoMozaik is agricultural social business that provides support to over 100 small farmers throughout the country. In the 2016, we carried out a thorough structural adjustments and rationalization of business and prepare a program of innovation in agronomy named "Agroinova.EU". The idea that lead us is a better quality of fruit production in the whole of Bosnia and 24

Herzegovina and the implementation the most important standards and the certificate (Global GAP and IFS) that will ultimately enable better placement of fruit from Bosnia and Herzegovina in the global market. Now is planted about 18 hectares of plantation of berry fruit with our cooperants, which provides seasonal job for 140 families We are looking for new possibilities and placement of fruit and we wish to expand interests and to other agricultural cultures in different regions of BiH. Our strawberries and raspberries have been recognized as a extremely high quality which proves a good preparation and the successful work of agronomists and trusted choice of partners inside of the production process. We are proud of fact that inside of our business model we engage the whole family and that we are awaken interest in those BiH citizens who have not be farmers until now. In year of crisis for BIH agriculture we expect a stronger presence of EkoMozaik, by doing a new portal Agroinova.EU that will allow innovations in communication between farmers, logisticians, cold storage and dealers. In fact, with a standard business, we invest in IT solutions which will make it easier and guaranteed full logic of the traceability, from the farm up to products in supermarkets around the world. Way of customers from the world to best of BIH strawberries and raspberries will lead across EkoMozaik.

4.2. MAŠTA AGENCY FOR PROMOTION OF SOCIAL RESPONSIBILITY MaŠta is the second social business of Mozaik Foundation that is operated by its own separate management. The mission of the business is to promote social responsibility of companies and in general. The year of 2016 was the extension of the struggles from 2015 that MaŠta Agency went through, primary because of human capacity deficit. The Director who came back from in September 2015, after a year of maternity leave, resigned in October 2015. The Agency stayed for six months without staff since the other full time employee was at the maternity leave as well. This implied employment of new director which happened in April 2016.

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After one year of not having any activities, MaŠta Agency organized Innovation Tournaments for Mozaik Foundation in May 2016.

In June, we organized three American Embassy Grantees Fairs in Mostar, Sarajevo and Banja Luka.

After those events, the Agency went through another human resource issue when the new Director resigned just three months after her employment. In October, Marketing and Communications Manager returned from maternity leave when MaŠta Agency created new opportunities and ended a year with three fully completed projects.

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On 21th of October, MaŠta organized a workshop for Impact Hub Vienna as well as an International Peace Conference for Balkan Club of Peace on 24th of October.

In November 18th, MaŠta Agency organized the session as a part of the Global Table Conference of Rule of Law in Southeast Europe for BMW Foundation Herbert Quandt.

December was reserved for preparation of ceremony for Annual Celebration of Volunteers for American Embassy to BiH, that will take place in January 2017 and preparation of new long term cooperation with a health institution from Doboj which will start in late January 2017 as well. The strategic plan for 2017 is focusing on attracting clients and on human capacity building. We will look for professionals who will be able to follow our way of doing business differently and the one who will preserve our core values together with principles of social business. The goal is to ensure stability of MaŠta Agency and safe working environment for its employees.

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4.3. TECHSOUP BALKANS PROGRAM Techsoup is donation program of licensed software and cloud services for non-profit organizations. In November 2014, Mozaik became a regional partner of Techsoup Global, supporting organizations from BiH, Croatia, Serbia, Montenegro, Macedonia, Albania and Kosovo. Mozaik processes software donations from Techsoup's donor partners: Microsoft, Google, Bitdefender, Tableau, Autodesk and Symantec. We set up an online platform in several languages (BHS, Macedonian and Albanian), where organizations can register and send their requests for software donations online. Our database of available donors for Balkans area is increasing and give more opportunities to local organization to use tools that can enhance their organizations work and improve IT infrastructure. Our tools for promotion and technical support are Techsoup Balkans Facebook and Twitter page to communicate and provide better understanding and use of technology in daily work of NGOs, as well as direct communication and support of organization in IT and licensing. In 2016, Techsoup Balkans became a partner in EU funded project where we will make a market research to define needs for IT services in non-profit sector in the region. Thanks to improved promotion, in 2016, TechSoup Balkans donated over 500.000 USD of licensed software to registered NGOs in the region. In 2017, we plan to focus on additional promotion of the program to local and regional NGOs. Also, we want to provide technical support and good practices examples regarding usage of all available technology tools available through our program. 5. MOZAIK’S DEVELOPMENT 5.1. M-FUND – ENDOWMENT BUILDING ACTIVITIES Endowment building strategy is one of pillars of Mozaik’s long-term sustainability. So far we have collected nearly $80,000 from individuals and businesses. 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. The contract was signed until December 2016, but Mott approved our request for extention for one more year and we hope to raise planned funds until December 2017. In January 2017, our endowement fund is over 150.000 Euro. Mozaik’s board has decided to put Mozaik’s asset, the house we own in the old city, as contribution to endowment fund. Five agencies were selling the house and yet, we did 28

not succeed to sell it. Based on their advices, we have decided to clear the house and sell just the land with all necessary approvals from municipality and cultural heritage protection authorities. We changed our selling strategy and believe that we will be able to sell the house until Decembre 2017 and secure the matching fund. 5.2. MOZAIK’S RESOURCES 5.2.1. CURRICULUM DEVELOPMENT In year 2016 Mozaik continued with development of M-zone Curriculum. Now it contains seven courses that are targeting development of seven competencies, which are defined as crucial for youth social entrepreneurship - communication, critical thinking, personal leadership, engagement and collaboration, creative thinking, management proficiency, business acumen. The set of social entrepreneurship skills are built through a combination of four learning methods: formal learning and on-line social learning delivered mainly through Moodle platform and partially through face-to-face workshops, as well on-demand learning and experiential learning supported by mentors. The content of each course is organized in specific learning areas and strategically support two main Mozaik program. It is important to mention that, based on test-invest methodology, Curriculum provide information about candidates performance, talents, capacities and values needed for selection and progressing to each following stage. Building such complex and comprehensive learning and developing construction required complex and multidisciplinary team. First of all, based on the evaluation of the M-zone pilot phase in 2015, Mozaik decided to engage social research agency proMENTE, which established new Moodle platform and was responsible for uploading and managing the M-zone content, submitting timely reports and statistics and providing Mozaik with recommendations for improvements. In addition, as integral part of the Curriculum, Mozaik developed synopsises and held Training of Facilitators, Judges and Inclusion Catalysts as preparation for the Social Innovation Tournaments, as well the Training of Trainers as preparation for delivery of the „We have a problem. Great opportunity!“ community workshops on appreciative inquiry. As the modules have been uploaded on the M-zone the programs were implementing, and this required continuous monitoring of the activities of the candidates, clarifying confusion, timely responding to their needs and questions and tracking needs for improvements and adjustments that has to be done in year 2017.

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5.2.2. MARKETING DEPARTMENT In 2016, Mozaik established functional and high-skilled marketing department. Mozaik as a brand had a quite low brand recognition. It did not communicate values that it wanted to be synonymous with and its image was unidentified. The young audience perceived its image as dusty, old-fashioned and lacking dynamism. In order to change this we have developed a broader and more strategic approach to marketing, introducing brand building activities, and clear and focused communication. By defining our target group(s), two tire communication platform is applied for our consumers and our customers. All the activities were in line with our strategy and they consistently positioned Mozaik as the creator of good economy, which was designed to also to be our tag line: CREATORS OF GOOD ECONOMY. 5.2.2.1. CAMPAIGN 2016 The first activity that was carried out in this fashion was open call to enter the M-zone. The aim of the campaign was to attract minimum of 4.000 young people, ages 17-35, who are ambitious, passionate, honest, and humble, have grit and empathy, and want to improve something in their community. The campaign was designed to convey the primary message to our potential consumers: “if you want to change something in your community, Mozaik provides the opportunity.” Our campaign slogan was: 100 opportunities for 100 ideas. The campaign was predominantly in digital format with complementary BTL (Below the Line – field activities). The creative elements of the campaign were: Video and Roadmap Video: https://www.youtube.com/watch?v=zSA_p_60h8Y https://www.youtube.com/watch?v=olmJJhyypes

Main communication channels of the campaign were:  Mozaik Facebook Fan page  Paid advertising (Google AdWords, print or online banner ads)  Unpaid placements (PSAs)  Mozaik Website  Press Conference  BTL activities (FTF, leaflets, presentations) 5.2.2.2. SOCIAL INNOVATION TOURNAMENTS Bold colours, street art and graffiti style were underlying inspiration of our creative design for Social Innovation Tournaments (SIT). The design was selected with aim to further raise awareness of our mission, communicating serious topics with a fun, 30

creative and eye-catching image. Street art and graffiti can capture the attention in a way that standard, everyday advertising cannot, provoking conversation and true brand awareness. VIDEOS: https://www.youtube.com/watch?v=qW4oqcVcdXs https://www.youtube.com/watch?v=cx7srqtH4bI

5.2.2.3.

DEMO DAY 2

Eight teams pitched their business ideas at Demo Day 2. For this event we have designed a creative concept that replicated a movie viewing experience. It took place at a movie theater were members of pitching teams were presented like movie heroes, hence highlighting our impact statement of leading the development of a new generation of entrepreneurial and innovative youth that serves as role model to others. The slogan was also fashioned in movietitle manner: The Brave Eight Materials created for Demo Day 2 were:

VIDEOS: https://www.youtube.com/watch?v=MwUEjJEnWkw&t=33s https://www.youtube.com/watch?v=1vHytCjHlqY&t=23s

5.2.2.4.

PROJECTS IN COMMUNITIES AS POSITIVE STORIES:

We used positive storytelling format to showcase the exceptional projects that were carried out in various cities and municipalities. Sharing these stories is effective way we can motivate and inspire others. http://www.mozaik.ba/bs-lat/vijesti/item/390-mladi-za-svu-djecu-u-kozarskoj-dubici http://www.mozaik.ba/bs-lat/vijesti/item/388-plivajmo-za-sve-u-opcini-doboj-jug http://www.mozaik.ba/bs-lat/vijesti/item/387-antibakterijska-inovacija-iz-sarajeva http://www.mozaik.ba/bs-lat/vijesti/item/386-psihologija-u-sportu-za-osobe-sa-invaliditetom http://www.mozaik.ba/bs-lat/vijesti/item/385-virtuelna-apoteka-na-univezitetu-u-banjaluci http://www.mozaik.ba/bs-lat/vijesti/item/384-mladi-iz-konjica-brinu-za-izletiste-vrtaljica http://www.mozaik.ba/bs-lat/vijesti/item/383-mladi-iz-lopara-pod-parolom-selekcija-i-reciklaza-ekologija-nam-je-najdraza http://www.mozaik.ba/bs-lat/vijesti/item/382-streetball-art-fest-u-jelahu http://www.mozaik.ba/bs-lat/vijesti/item/378-znanstveni-kamp-za-djecu-i-mlade

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http://www.mozaik.ba/bs-lat/vijesti/item/377-sretni-dani-za-djecu-i-mlade-u-kladnju

5.2.2.5. DEMO DAY 1, KICKOFF 2 AND CONFERENCE To convey a premium image and send a message that social innovation comes from the heart, new visuals were developed for these activities and events. A specific mix of colors was used to present Mozaik as sophisticated, reliable and trustworthy brand, in addition to lightbulb with heart inside, which represented innovation and passion.

5.3. HUMAN RESOURCES In 2016, Mozaik’s team grew to 25 full time employees. We succeeded to hire new Financial Director and new Marketing Director, both coming with great experience from for-profit sector. We also succeeded to increase capacities of several staff members who got the new role within the strategy. The Labor Law in BiH has changed and we had to change all employees’ contracts. Now every employee has a fixed and variable part of monthly salary and every of Mozaik’s director is preparing monthly evaluation conversations. It significantly improved relationships among all team members and clarify roles and KPIs for every position. In 2015 we signed new contracts with incentive policy to motivate teams to meet all analytics, admin, learning and other requirements. In 2016, we piloted three new tools: a) desktime – software to follow and measure productivity that is used for selfassessment and evaluation; b) operative plan and weekly operative meetings focused on RACI (responsible, accountable, consulted and informed) methodology and c) OVIS system that will be fully implemented in 2017 that will transform Mozaik to paperless office. After initial resistance to change, that was expected since we put people out of 32

their comfort zone, new climate and culture is emerging that puts Mozaik in execution phase, necessary to succeed with the new strategy. Mozaik’s 3-member board is involved and active – they participate in all decision making processes and promote Mozaik’s strategy widely.

5.4. NETWORKS In 2014 we continued with active participation on several networks: Grantmakers East Forum, European Foundation Centre, SIGN Network and National Network for Building Peace, NGO Council. Mozaik became full member of EVPA and governing council member of European Foundation Centre. The regional SIGN network is successfully implementing EU funded project SIGN for Sustainability, led by Trag, while Horus (replaced CIRA), fAct, VIA, FIQ 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. Beside US Deloitte, in 2015 we established great partnership with several European experts in social entrepreneurship (Ashoka, Impact Hub Berlin, Munich University, Yunus Social Business Balkan) that will be useful for Mozaik’s capacities to support social entrepreneurs. We develop strong base of mentors who can support our social businesses during incubation process. 6. LESSONS LEARNED The main lessons learned in 2016 are focused on findings that will fine-tune our curriculum and M-zone. We were collecting data from our beneficiaries in order to make M-zone more user-friendly. Simultaneously, we piloted Test-Invest in its full stages and developed needed suggestions for improvement, in order to identify the most promising youth as soon as possible. We also decided that 2017 will be dedicated in processes optimization. We explored the option for lean management and have decided that it is too complexed for our operation. Finally, we use annual operational plan and ask every director to review his/her processes and suggest optimization. We are focused on quality improvement. We are proud with the results achieved in 2016 and yet put a higher expectation on ourselves. In 2017, we expect 5.000 registrations and at least 15 registered social businesses.. 33

The main findings and lessons learned that will be integrated in 2017 are: 



   





Although national marketing campaign in 2016 attracted over 150 young persons with disabilities, where 31 of them advanced through the program, finally, we did not get PwD at the end of incubation period – two were invited and both decided not to continue. Our national marketing campaign in 2017 needs to address the question of attracting young people with disability who have strong entrepreneurial capacities. We have to introduce test of entrepreneurial competencies within Test-Invest methodology in order to identify and select young people with strong entrepreneurial potential. We have to implement regular M&E activities that will lead to Impact Assessment, following our Impact Management Matrix Curriculum modules for the incubator need to be changed – shorter and with clear answer to specific questions We have to strengthen Mozaik’s role as a regional player in the social entrepreneurship We have to establish cooperation with Universities as focal points of youth-age we are targeting. We have to formalize partnerships with other relevant stakeholders, Ministries, relevant NGOs, national and regional incubators. YouthBank teams, young people that support implementation of our strategy, need to have on-going capacity building. Beside Social Inclusion Catalysts that were trained in 2016, we have to train Innovation Specialist who will boos innovation during the Social Innovation Tournaments. We have to optimize all processes within the M-zone in order to use resources cost-effectively and achieve desired impact.

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Attachment No. 2 – Businesses that were presented at DemoDay II in June 2016 Businesses that completed the incubation process and pitched in June 2016: 1. Unique Workshop

What they do: produce wooden toys for children designed by children in creative workshops; Their impact: using inclusive workshops where children with difficulties in learning interact with children with normal development trajectory to design wooden didactic toys of universal design; providing apprenticeship for secondary shool students in the process of toys production; From their evaluation sheets: “This process gave me so much confidence in what I do.”

2. Jelena BIO-Station

What they do: Educating local inhabitants of their town of Sipovo how to preserve biodiversity of their region while collecting biomedicinal plants; Processing collected plants and selling as tea; Their impact: creating local jobs by engaging local population in collection of biomedicinal plants; creating a network of local responsible plant pickers who are educated on how properly to pick plants without destroying the biodiversity of the region; From their evaluation sheets: “Even though I had many problems during incubation given the nature of my business, I managed to get people from the sector interested in what I do. I expect to have my products in bio-shops as soon as I register.” 3. The Cube

What they do: They are a team of eight young people who created educational curricula for nine different types of intelligence; they believe that each child should be given a proper space to explore his/her strong sides and they offer a series of workshops for kids to help them do it; Their impact: they offer workshops in big cities for a market price and use some of their margin to offer free of charge workshops to kids from disadvantaged families and kids from remote areas.

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From their evaluation sheets: “It took a while to start thinking like a business but we feel we got there and we are excited to see what the next steps will be.” 4. Adventure park “Green Islands” What they do: They offer a range of adventure services in their small town of Bosanska Krupa such as rafting and biking while promoting local produce from farmers in surrounding villages. Their tours include cleaning actions as part of their offer since one of their goals is to preserve the nature of their region. Their impact: Offer much needed activities in a small community; help promote local production; safeguarding the ecology of their region. From their evaluation sheets: “We have learnt a whole lot about how to concieve of a proper business, how to market it and run it.”

5. Steady hand

What they do: They take care of elderly in their town and plan to expand to two neighboring towns by the end of 2016. Their team provide all non-medical services to elderly citizens such as house and yard cleaning, doctor visits, grocery shopping, paying bills, taking walks with them. Their impact: Elderly folks in their region is mostly left alone after their children have migrated to various countries across the globe. This business clearly makes life of elderly people much more dignified and easier. It provides these services free of charge to those who cannot afford any kind of help. From their evaluation sheet: “There were countless iteration during this process. We sometimes felt like we were taking one step forward and two steps back, but we soon learnt that we need to make greater use of media in advertising our services. Now, instead of going door to door offering our service, we are sought after.” 6. Agrorevolution What they do: they produce high quality beef using the network of local farmers who are first taught how to produce the animal feed of highest quality and then integrated into a network of farmers focused on high quality meat production. Their impact: In the region where most of the population is unemployed and much of the land stays idle, this team will

36

activate local economy by engaging small local jobless farmers into meat production. From their evaluation sheets: “Our mentors were always there for us when some tought decisions needed to be made. I am extremely happy that I am now just one step away from making my dream come true.”

7. Play Learn Grow What they do: This team has noticed that children of pre-school age have difficulties focusing on simple tasks with one exception – they focus too much on mom or dad’s smart phone. By producing a game of cards for children and their parents, this team wishes to bring back the interaction between parents and children to where it should be, away from smart phones and similar devices. Their impact: Help create more natural way for children to develop their cognitive skills while playing with their parents; producing a version of the game to be made available free of charge to selected kindergardens or to kids in small and remote communities. From their evaluation sheets: “There is no formal education in BiH that can give you the experience we had throughout the incubation process. And there is no credit card that can purchase you this knowledge we have gained.”

8. AgroLAB What they do: they are a team of young chemists and chemistry engineers who wish to provide their local farmers with timely and affordable soil analysis and also with expert advise on how to pick the right plants for certain soil quality. Their impact: offering a service that is clearly in demand in a municipality that is predominantly agricultural. From their evaluation sheets: “During the incubation process we have managed to complete 50 soil analyses for local farmers and received additional 80 requests – and that was just the beginning. This process proved to us that this service is in great demand in our area.”

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