SEI — Social Entrepreneurship Index

Iceland

EFTA · statistics to 2024–25 · policy framework at end-2025 · policy desk-coded from public documents

50.2composite, 0–100
33 / 45rank · 2 of 4 in EFTA
−0.1change since 2015, time-varying indicators
Economic65.9Legal47.8Financial18.2Institutional73.7Political45.6
IcelandEFTA average

Dimensions

DimensionScoreRank /45EFTAEU-27Indicators
Political45.63548.070.07 / 8
Economic65.91756.463.413 / 20
Legal47.83134.366.07 / 12
Institutional73.7970.561.88 / 16
Financial18.24523.062.33 / 7
Composite50.23346.464.738 / 63

Indicators = scored now / in the full SEI matrix. Ties share a rank.

Composite, 2015–2024

4050602015201820212024
IcelandEFTA average

Same goalposts every year. Legal and financial scores are held at their single readings, so change comes from governance, social and labour statistics, firm demography and early-stage entrepreneurship.

Social-enterprise policy and legal framework, end-2025

SE strategy / action plan 1.2.1
S10S20S30S40S50
Criteria and evidence
  • S1 · Status: 0 (none)
    No national SE strategy adopted or in preparation; the 2024 ministerial answer to the Althingi (þingskjal 671) proposes no strategy: 'none'. · source 1
  • S2 · Dedication: 0 (SE absent from adopted national strategies)
    The 2024 ministerial answer (Þingskjal 671, Minister of Culture and Business Affairs) says there is no specific framework for social enterprises and only that they fit the goals of chapter 16 of the fiscal plan 2024-2028 (transparency, social responsibility), not that the plan mentions or targets them: 'SE absent from adopted national strategies'. · source 1
  • S3 · Operational content: 0 (no adopted instrument)
    No instrument: 'no adopted instrument'. · source 1
  • S4 · Monitoring: 0 (none)
    No instrument to monitor: 'none'. · source 1
  • S5 · Participation of SE organisations: 0 (no evidence)
    No instrument, hence 'no evidence'. · source 1
0.0
Institutional structure & dialogue 1.2.2
I133I20I30I40
Criteria and evidence
  • I1 · Lead responsibility: 33 (SE handled informally or split, no lead named in any official text)
    The Minister of Culture and Business Affairs answered the 2024 question, but the answer names no ministry responsible for SE and says further support is reviewed by 'the relevant ministries'; no law or strategy assigns a lead: 'SE handled informally or split, no lead named in any official text'. · source 1
  • I2 · Breadth of mandate: 0 (none)
    No body holds an SE mandate: 'none'. · source 1
  • I3 · Consultative body with SE organisations: 0 (none, or only in a draft)
    No consultative body with SE organisations: 'none'. · source 1
  • I4 · Inter-ministerial coordination: 0 (none)
    No inter-ministerial coordination on SE: 'none'. · source 1
8.3
Social clauses in public procurement 2.3.2
P1100P267P30P40
Criteria and evidence
  • P1 · Legal basis: 100 (reservation or preference explicitly for SE/SSE entities (e.g. Directive 2014/24 Art. 77 transposed, a national SSE quota))
    Regulation No. 1000/2016 on procurement of social and other specific services (issued under Arts. 95 and 122 of the Public Procurement Act No. 120/2016; in force since 23 Nov 2016) allows a contracting authority to restrict participation in procedures for listed health, social and cultural services 'í samræmi við skilyrði 95. gr. laga um opinber innkaup nr. 120/2016'; Ríkiskaup's 2023 memo confirms participation may be limited only for such services under Art. 95 and Reg. 1000/2016: Art. 77 transposed, 'reservation ... explicitly for SE/SSE entities'. Medium: the conditions in Art. 95 were not read directly (althingi.is unreachable). · source 1
  • P2 · National policy push: 67 (national socially responsible procurement guidance or plan)
    Government procurement pages list a state policy on sustainable procurement ('Sjálfbær innkaup - stefna ríkisins') with an action plan, and guidance on chain liability ('Keðjuábyrgð - leiðbeiningar') under Art. 88 a of Act 120/2016, which obliges main contractors to ensure wages, terms and insurance of all staff on the contract; no target or quota for social clauses: 'national socially responsible procurement guidance or plan'. Medium: the social content of the sustainable-procurement policy was not read. · source 1
  • P3 · Evidence of use: 0 (none)
    No figures or reported cases found: 'none'. · source 1 · low confidence
  • P4 · Capacity support: 0 (none)
    The state procurement school (Innkaupaskóli Ríkiskaupa, now Fjársýslan) offers buyers and bidders a 'Sjálfbær innkaup' course on sustainability requirements under Act 120/2016 (Jan 2024), but it is not documented to cover social clauses or reserved contracts: 'none'. 67 if the sustainability course is shown to cover social clauses. · source 1
41.7
Official SE definition 3.1
D133D267
Criteria and evidence
  • D1 · Where defined: 33 (in an official draft pending on 31 Dec 2025, or a non-binding document)
    The only official definition is the descriptive one in the 2024 ministerial answer to the Althingi, a non-binding document: 'a non-binding document'. · source 1
  • D2 · Content (social aim; participatory governance; limits on profit distribution): 67 (two)
    The 2024 ministerial answer describes social enterprises as operators whose main aim is 'jákvæð samfélagsleg áhrif' rather than profit for owners, with any profit used mainly for social goals; no governance element: 'two' (social aim; limit on profit distribution). · source 1
50.0
Legal recognition of SEs 3.2.1 · level 0 of 3
None · source 1
L10L20L30L40L50
Criteria and evidence
  • L1 · Adoption stage: 0 (none, announced, or consultation draft)
  • L2 · Scope: 0 (none)
  • L3 · Implementing rules: 0 (none adopted, or law not in force)
  • L4 · Status or register: 0 (foreseen with no entity recognised, or law not in force)
  • L5 · Bodies foreseen by the law: 0 (foreseen, not set up, or law not in force)
0.0
SE support ecosystem 4.3.6
E133E233E333E4100E533
Criteria and evidence
  • E1 · National programme: 33 (project-based only (donor, EU or NGO projects without government lead))
    The main SE-relevant support is the social-innovation accelerator Snjallræði / Startup Social, founded in 2018 by the Höfði Peace Centre and run by KLAK and the universities with MIT DesignX; two ministries appear among its supporters (2022) but it is not a government programme: 'project-based only (donor, EU or NGO projects without government lead)'. · source 1
  • E2 · Territorial coverage: 33 (capital or one region)
    The accelerator is delivered in Reykjavík (UI Science Park, City of Reykjavík partner), with the University of Akureyri among organisers; no regional network: 'capital or one region'. · source 1
  • E3 · Public funding of support: 33 (mainly donor or EU funded)
    Funding in 2025-2026 comes from the City of Reykjavík (ISK 3m a year), universities, UI Science Park and Marel; ministries were listed as supporters in 2022 without amounts; no national budget line: 'mainly donor or EU funded' (read as non-national). · source 1
  • E4 · Continuity: 100 (five years or more)
    Snjallræði was founded in 2018 (fourth edition in Dec 2022) and continues as Startup Social (snjallraedi.is) with Reykjavík funding for 2025 and 2026 and an Aug 2025 application round: 'five years or more'. · source 1
  • E5 · Range of services: 33 (one)
    Documented services are training, mentoring, MIT DesignX workshops and a 16-week incubator period ending in pitches, i.e. incubation/acceleration only; finance, legal, impact-measurement or market-access services are not mentioned: 'one'. · source 1
46.7
EU funds mobilised for SE 5.1.1
F10F20F30F40
Criteria and evidence
  • F1 · Programming: 0 (SE not mentioned)
    Not an EU member state or recipient of EU external assistance (index rule)
  • F2 · Calls and instruments: 0 (none)
    Not an EU member state or recipient of EU external assistance (index rule)
  • F3 · Channel: 0 (none)
    Not an EU member state or recipient of EU external assistance (index rule)
  • F4 · Evidence of take-up: 0 (none)
    Not an EU member state or recipient of EU external assistance (index rule)
0.0
Dedicated national funding 5.2.2
N133N20N30N40
Criteria and evidence
  • N1 · Dedicated line: 33 (only general SME/employment programmes open to SE)
    The 2024 answer reports government grants to operators in work integration, personal social services, rural and fragile communities, environment, culture and research, with no SE-specific line and no amounts: 'only general SME/employment programmes open to SE'. · source 1
  • N2 · Instrument types: 0 (none)
    N1 = 33: 'none, or N1 <= 33'. · source 1
  • N3 · Continuity: 0 (none)
    N1 = 33: 'none, or N1 <= 33'. · source 1
  • N4 · Execution: 0 (no evidence)
    N1 = 33: 'no evidence, or N1 <= 33'. · source 1
8.3

Policy composite 19.4 of 100 (mean of the eight indicators). Iceland has no SE law, definition, strategy, dedicated funding or responsible body (confirmed by a 2024 ministerial answer); SEs use cooperative, foundation and company forms with fragmented start-up support.

Cite this profile

Social Entrepreneurship Observatory & SENIC. (2026). Iceland: SEI 2026 country profile (provisional edition, version 0.9.4). Social Entrepreneurship Index. https://seindex.org/countries/iceland/