Preconditions for the social entrepreneurship developments

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Workshop 2: Serbia – Social entrepreneurship and sustainability
Belgrad – Study Tour (28.02-03.03.2012)
The project „Overcoming the Digital Divide: Access for Rural Communities” / „Incluziunea digitală a comunităților rurale”

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Preconditions for the social entrepreneurship developments

  1. 1. Social Entrepreneurship Development– Preconditions and Perspectives – Miodrag Shrestha, Belgrade 29.02.2012.
  2. 2. Structure of the presentation Definitions Stages in the development of the social entrepreneurship Social Entrepreneurship and Telecenters Serbia Case Study
  3. 3. Definition(s)“A social enterprise is a businesswith primarily social objectiveswhose surpluses are principallyreinvested for that purpose in thebusiness or in the community, ratherthan being driven by the need tomaximise profit for shareholders andowners.” Social Enterprise: a Strategy for Success Department of Trade and Industry, 2002
  4. 4. Definition(s)“Social Enterprise is an organization withan explicit aim to benefit the community,initiated by a group of citizens and inwhich the material interest of capitalinvestors is subject to limits. They place ahigh value on their independence and oneconomic risk-taking related to ongoingsocio – economic activity.” (Borzaga and Defourny, 2001)
  5. 5. Definition(s)Social enterprises are not-for-profitprivate organizations providing goods orservices directly related to their explicitaim to benefit the community. They relyon a collective dynamic involving varioustypes of stakeholders in their governingbodies, they place a high value on theirautonomy and they bear economic riskslinked to their activity. (Defourney and Nyssens)
  6. 6. Main Characteristics of the Social EnterprisesIt has both Economic and Social Dimension Economic meaning they produces goods and services; they should be market oriented; they bare substantial economic risk; they might be highly innovative with lots of voluntary work. Social Enterprises have clear social goal, commitment to the community; they are independent and autonomous in their work but open for different partnerships; they are not for profit organisations.
  7. 7. Stages in the Development of Social Entrepreneurship We can identify 3 stages of development of social entrepreneurship: Initial(Pioneering) Stage Institutionalisations Stage Differentiation (Developed) Stage
  8. 8. Initial (Pioneering) Stage Bottom – up emergency of social enterprises in various sectors of interest to the community Not legally regulated (recognized) Operate despite the lack of enabling institutional and legal environments Low level of networking and no umbrella organisation High degree of innovation Strong reliance of voluntary work
  9. 9. Institutionalizations Stage Social enterprises rely on paid, trained staff Grassroots, bottom up social enterprises recognized by state and business sector There are on going discussion on legal framework and some policies developed Awareness of social entrepreneurship is widespread There are excellent social enterprises set as an example Networking among social enterprises and other stakeholders is rising There are financial instruments
  10. 10. Differentiation (Developed) Stage Social enterprises are well consolidated organised in the network(s) and expanding Legal framework is set up and functions There is partnership with state/local and business sector Social enterprises are managed by educated social managers Citizens are aware of social enterprises and support them More financial schemes for the support of social enterprises Social enterprises are linking internationally and exporting their model
  11. 11. Preconditions for the development of the social entrepreneurship Actors (social enterprises, CSOs, government) Awareness raising (informative and education) Gradually improvement of the Legal framework Building up of the financial support for the social enterprises Promote social enterprises (best examples) Network Building capacities of the social managers
  12. 12. Social Entrepreneurship and Telecenters Where is the connection?Telecenters are: Innovative, Community based, They can be market oriented, Have different legal forms, They can be Tele – Hub, Community TeleCenter
  13. 13. Case Study Serbia Telecenter : Part of Teledom Association network and strongly connected with one abroad Teledom Head of the Telecenter is very well educated in economy and computer sciences. Mission: to use modern means of information and communication technologies to contribute to the creation of equal opportunities for people from micro communities - especially rural areas
  14. 14. The enterprise has extensive product portfolio categorized in six product groups: Providing computer literacy certificates Informal education (both youngsters and adults) Entrepreneurship support Commercial web portal IT competing Promoting tolerance- However, some of these initiatives were single actions and were not repeated.
  15. 15. In consultant’s opinion, the areasthat should be further explored and exploited in social enterprise are: Informal education of both young people and adults in areas of computer literacy and personal qualification (European Computer Driving License - ECDL Developing educational materials and utilizing it via e – learning, as extension to the first activity. Web portal – business and tourist guide for their region. This website has strong potential to become tourist and investors guide for the area. Entrepreneurship support – via different courses/ training for business planning and fundraising.
  16. 16. Informal education Multimedia education IT basic and advanced courses Education of countryside tourist service providers Professional courses in agriculture area Training for the Trainers in informal education Training for the Coordinator of the informal education Training for IT course leader Training for the Coordinator of the Teledom Trainings for job hunting Basic EU project proposals courses writing Best entrepreneurial practice (sales and marketing in agricultural business areas)
  17. 17. Target customers before / after intervention At the beginning, the enterprise targeted almost everyone: students, unemployed, entrepreneurs, elementary school pupils, high school pupils etc. Now, the company targets several target groups: students, high school pupils and online population who wants to gain computer literacy or award diploma.
  18. 18.  Consultant strongly recommended connection with local high school in order to complement official school portfolio with knowledge that Telecenter can provide. Similar with the local municipality and regional authorities through establishing support for promoting idea of long life learning and professional qualification might result in better sales of courses in community
  19. 19. Strengths WeaknessesExcellent premises No strategyExcellent computer No sales forceequipment No clear Job descriptionsRecognized professional Too broad productqualification portfolioEnergetic leaderOpportunities ThreatsChance to develop Decreased interest incooperation with National professional qualifications.Employment ServiceChance to developconnections withmunicipality
  20. 20. KEY OBJECTIVES Tocreate optimized product portfolio. Tooffer complete product portfolio to the market via sales / marketing strategy.
  21. 21. Proposed action plan To create sales strategy and action plan. To create product portfolio To execute sales strategy
  22. 22. Short – term impact (marketing, sales, HR, operations etc) Creation of viable product portfolio. Design of sales letter template. Long – term impact (structure, culture etc) Changed organizational culture – outward oriented rather than self – sufficient. Being more responsive to market or community trends. Creating more market driven culture.
  23. 23. RECOMMENDED ACTIONS IN FUTURE To invest time and other resources in marketing activities. To develop service that helps National Employment Service. The enterprise could sell trainings for entrepreneurs and be supplier of National Employment Service in order to promote self- employment. Also, the ECDL certification might be offered via National Employment Service as an asset for easier employment. To develop connections with municipality authorities. To develop connection with local schools and neighboring towns / villages.
  24. 24. Useful links Europe 2020 - Inclusive growth http://ec.europa.eu/europe2020/priorities/inclusive-gr DG Enterprise and Industry – Social economy http://ec.europa.eu/enterprise/policies/sme/promoting DG Employment, Social Affairs and Inclusion - Europe 2020 initiatives http:// ec.europa.eu/social/main.jsp?langId=en&catId =956
  25. 25.  DG Employment, Social Affairs and Inclusion - PROGRESS program http:// ec.europa.eu/social/main.jsp?langId=en&catId =987 DG Employment, Social Affairs and Inclusion - Progress Microfinance http:// ec.europa.eu/social/main.jsp?langId=en&catId =836 DG Internal Market and Services – Social business http:// ec.europa.eu/internal_market/social_business/index
  26. 26.  SOCIAL ECONOMY EUROPE http://www.socialeconomy.eu.org/?lang=en CIRIEC study: "The Social Economy in the European Union" (2007) http://www.socialeconomy.eu.org/spip.php?article420 Peer Reviews 2008 - The social economy from the perspective of active inclusion http://www.peer-review-social-inclusion.eu/peer-reviews/2008/the-social-e Work Integration Social Enterprises and their role in European Policies National Cross Cutting Reports http://www.isede-net.com/content/social-economy/wise-work-integration-s Social Enterprise: A new model for poverty reduction and employment generation http://www.emes.net/fileadmin/emes/PDF_files/News/2008/11.08_EMES_
  27. 27. Discussion:Questions, Comments, Remarks
  28. 28. Thank you for your attention! Miodrag Shrestha smiodrag@yubc.net
  29. 29. Socijalno preduzetništvo u svetu i EU Procenjuje se da sektor socijalnog preduzetništva u svetu danas zapošljava oko 40 miliona ljudi, sa preko 200 miliona volontera. Preko 30 univerziteta u svetu ima programe socijalnog preduzetništva, uključujući: Kolumbiju, Harvard, Stanford, Oxford. U EU različiti oblici socijalnog preduzetništva (zadruge, organizacije civilnog društva, fondacije, socijalna preduzeća) čine dva miliona privrednih društava, odnosno 10% i zapošljavaju 11 miliona ljudi (oko 6%)
  30. 30. Socijalna preduzeća u Srbiji 2008Oko 1150 organizacija koje su imale odlike soijalnog preduzeća  162 NVO,  898 zadruga,  55 preduzeća za zapošljavanje lica sa invaliditetom,  24 zavisna spin-off preduzeća,  13 agencija za razvoj malih i srednjih preduzeća,  6 poslovnih inkubatora i  2 organizacije drugog oblika
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