The need for the development of support services for Social Cooperative Enterprises
3rd INTERNATIONAL CONFERENCE ON QUANTITATIVEAND QUALITATIVE METHODOLOGIES IN THE ECONOMICAND ADMINISTRATIVE SCIENCESATHENS MAY 23-24, 2013The need for the development ofsupport services for SocialCooperative EnterprisesAntonios VorloouMinistry of Labor, Social Security and Welfare
• Range of concepts in the different EU MemberStates:– solidarity economy– third sector• Differences in institutional frameworks andterminologies• Inspired by common values such as:– solidarity– social cohesion– Supremacy of the individual over capital– social Responsibility– Democratic decision-makingSocial Economy
Social EconomyParticipants are not driven by profit seeking,butprofits are reinvested for the benefit of the businessand society.Its a different way of doing businesswith the general interest, economic development, socialdimension and the democratic functioning
Social Economy in the EUIt employs over 11 million workers6% of the totalFrance: 10% GDP and 12% employment
Social Economy in Greece• High levels of unemployment• Especially in vulnerable parts of the populationSocial Economy• Job creation• Promotion of social cohesion• Promotion entrepreneurship in vulnerablegroups
Law on Social Economy and SocialEntrepreneurshipSocial Cooperative Enterprisecreating “socially oriented entrepreneurship”
• Urban cooperative of social purpose with limitedliability of its members which produces or tradesproducts or services• A business that is managed equally by the members,and its operation is based on collective welfare whilepursuing the profit resulting from actions that onlyserve the public interest.What is a Social Cooperative Enterprise
• one member - one vote regardless of the numberof cooperative shares• Distribution of profits annually, as follows:• Reserve up to 5%• Bonus to workers up to 35%• Re-investment for job creation and the businessactivities (social purpose) at least 60%General Characteristics
Social Purpose• Profit is a means to achieve the social purposerather than the purpose of Koin.S.Ep.• It is fulfilled by:– Selling products or services that have a socialbenefit and also bring profits– Spending the profits for providing products orservices which create social benefit withoutincome
Social Innovation• Instruments: new ideas (products, servicesand business models) that simultaneouslymeet more effectively the needs of society• Purpose: To create new social relationships orcollaborations.• These innovations not only benefit societybut also enhance the ability of society to act.
Social Innovation• Muhammad Yunus (Bangladesh)• Nobel price for Peace• Grammen Bank• Microcredit to non bankablepersonsExample of Social Innovation in Greece:• Social Cooperatives for mentally ill• Parents Cooperative of Chalandri (KoinSEp)
Social Franchising• Its aim is to replicate a successful businessmodel of social entrepreneurship - Innovativeidea• Reduce cost and the risk for modeldevelopment
Categories Social Cooperative Enterprises(Koin.S.Ep.)• Inclusion• Social Care• Collective and Productive Purpose
Inclusion• Aimed at integration into economic and social life of personsbelonging to vulnerable population groups:– people with disabilities– dependent or detoxified from substances people– seropositive– prisoners / ex-prisoners– juvenile offenders• In a Inclusion Koin.S.Ep. at least 40% of workers should belong tovulnerable population groups• Establishing requires at least seven persons.
Social Care• Aimed at producing and providing products andservices of a social - welfare in specificpopulation groups such as:– the elderly,– infants,– children,– people with disabilities and– people with chronic diseases• Establishing requires at least five persons.
Collective and Productive Purpose• Aim at promoting the local and collective interest,employment, strengthening social cohesion and local orregional development.• Production of goods and services in areas such as:– culture– environment– ecology– education– public utility– local products– conservation of traditional activities and professions• Establishing required at least five persons.
Questionnaire• In order to determine the needs of theemerging sector, the Ministry of Labor hasdistributed a questionnaire to the registeredKoinSEp so as to identify the maturity of thebusiness models being developed andimplemented.
Questionnaire• Included:– General info• Number of members• Sector of Activity– Business Model• Type of Activity• Resources (human and other)• Clients (identified, who, marketing)• Income (state, private, %, pricing policy)• Social impact (measured, how)– Other needs
Responses• 35 questionnaires answered• Most from productive purpose• Most rely on state aid for launching and initialstages and gradually directed to private sectorincome• Business models not well developed• Clients roughly identified• Marketing policy not developed
Strategic Vision• Social Economy and Entrepreneurship willcontribute to sustainable economicdevelopment at the local, regional andnational level strengthening social cohesion.
Purpose of Strategic Plan• Rapid activation of the Ecosystem of SocialEconomy and Entrepreneurship, to create afavorable environment for the developmentof Koin.S.Ep.
Obstacles• Lack of appropriate and accessible support services forSocial Entrepreneurs• Lack of specialized grant programs for starting up Koin.S.Ep.• Unfavorable economic environment for the development offinancial tools to assist Koin.S.Ep.• Administrative and other obstacles to the development ofSocial Entrepreneurship• Low awareness of the new institution and the value of socialentrepreneurship
Strategy• Provide a framework of support and development ofKoin.S.Ep.• Provide the necessary start-up capital to support Koin.S.Ep.at their first steps.• Development of financial support services in the short andlong term, in order to further expand and develop Koin.S.Ep.• Removing legal and administrative barriers and creatingfavorable conditions for the development of Koin.S.Ep.• Informing local communities about the benefits of socialentrepreneurship• Developing transnationality actions to better utilize theexperience of other Member States
Axes• 1st: the support of the social economy bycreating central and regional supportmechanisms• 2nd: the financial support with grants forKoin.S.Ep.• 3rd: the financial tools to strengthen andexpand Koin.S.Ep.
1st AxisActivity 1:Central SupportMechanismActivity 2:Observatory of SEand SEActivity 3:Regional SupportMechanismsActivity 4:Complementary actions byMoL services• Development of tools / methodologies• Training of Multipliers• Supporting national networks• Counseling / Mentoring• Support pre start-up / erasmus• Incubator services• Networking (Conferences / Fora)• Publicity• Policy support for SE• Publicity - Workshops• Transnational Cooperation
Axis 2Activity 6:Vouchers forincubator typeservicesActivity 9:Grants on the basis ofjobs createdActivity 5:Support for thecreation of KoinSEp(pre start-up)Activity 8:Grant for the initialoperational plans ofKoin.S.Ep. for acquisitionof shares by employeesUnified call for proposalsActivity 7:Training
Axis 3Activity 10:ComplementaryRepayable GrantActivity11:Preparatory actions forthe development of aMicro Finance Institution
• On-line ApplicationMoL servicesTechnicalSteeringCommitteeConsulting supportTechnicalSupportActivity 1:Central SupportMechanismNational LevelActivity 3:Regional SupportMechanismsActivity 6:Vouchers forincubator typeservicesActivity 2:Observatory of SEand SERegional Level Activity 9:Grants on thebasis of jobscreatedActivity 5:Support for thecreation ofKoinSEp(pre start-up)Activity 10:ComplementaryRepayable GrantActivity11:Preparatory actionsfor the developmentof a Micro FinanceInstitutionActivity 4:Complementaryactions by MoLservicesEuropeanCommissionActivity 8:Grant for the initialoperational plans ofKoin.S.Ep. foracquisition of sharesby employeesΔράςη 7:Κατάρτιςηεργαζομένων ςεΚοινΣΕπPrivate Providersof SupportServicesAxis 1Axis 2Axis 3Unified call forproposals• Development of tools / methodologies• Training of Multipliers• Supporting national networks• Policy support for SE• Publicity - Workshops• Transnational Cooperation• Counseling / Mentoring• Support pre start-up / erasmus• Incubator services• Networking (Conferences / Fora)• Publicity
Consultation• Strategic Plan submitted for consultation until15 March 2013, in following web site:• http://184.108.40.206:8443/diaveykeko/ΔημόςιαΔιαβοφλευςη.aspx• Several suggestions have been integrated intothe plan