1. The story of social entrepreneurship
so far: an overview in numbers
Carlo Borzaga
Euricse/University of Trento
2. Main contents
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Conceptual issues
Background
Changing role of civil society organizations
The emergence of social enterprise
Social enterprise according to an European approach
Defining social enterprise
EU definition
Data on social economy and social enterprise
Success factors for social enterprises
3. Conceptual clarification
• Social entrepreneurship refers to a mindset and/or trend
o Covers a broad set of activities, which fall along a continuum,
including CSR practices up to trends in non-profit organizations
• Social enterprise refers to an institution, which shows specific
features
4. Background
• All over Europe at the end of XIX century significant contribution
to socio-economic development of civil society organizations,
including: coops, mutual aid societies, and voluntary
organizations
o Significant Social Economy history in specific EU countries
• used also as a synonym of Third Sector, developed
especially in French-speaking countries (e.g. France and
Belgium)
o Widespread development of charities and voluntary
organizations in the provision of health and social services
5. Changing role of civil society organizations
• Up until the 1970s, civil society organizations organizations
were confined to play a minor role in the socio-economic
model based on the interaction of the private (Market) and
public sectors (State)
• From the 80s, following the crisis of the bipolar model and
the decreasing ability of the public institutions to provide
social and general interest services, in several countries civil
society organizations gained a more relevant role and went
through an evolution
o Associations and charities stregthened their
entrepreneurial stance
o Cooperatives stregthened their commitment towards the
community
6. The emergence of social enterprise
• The social enterprise was developed to grasp this
new dynamic characterizing civil society
• Social enterprises evolved both:
o From old Social Economy organizational forms following
their commitment in new activities addressed also to non
members
o As new types of enterprises explicitly aimed at pursuing
social goals
• In Europe, a gradual convergence towars a common
definition of social enterprise has taken place over
the last years
7. Social enterprise according to an
European approach
Core product produced by social enterprise =
activities of interest to the entire community
Refers to a “different way” of doing business
and providing general-interest services
It encompasses:
new cooperative forms (social/solidarity
cooperatives)
entrepreneurial non-profit organizations
(e.g. associations)
shareholder companies that decide to
comply with key social criteria
8. Defining social enterprise
Main dim ension
Ent repreneurial/
econom ic dimension
General definit ion
Social enterprises (SEs) are engaged in the carrying out of stable and
continuous economic activities, and hence show the t ypical
charact erist ics t hat are shared by all ent erprises.
Social dimension
The social dimension is defined by the aim and/or products delivered.
Aim : SEs pursue the explicit social aim of serving the community or a
specific group of people that shares a specific need. By promoting the
general-interest, SEs overcome the traditional owner-orientation that
typically distinguishes traditional cooperatives.
Pr oduct : when not specifically aimed at integrating disadvantaged people
to work, SEs must deliver goods/services that generate a beneficial societal
impact.
I nclusive
governanceow nership dim ension
( social m eans)
To identify needs and involve the stakeholders concerned in designing
adequate solutions, SEs require peculiar ownership structures and
governance models that are meant to enhance at various extents the
participation of stakeholders affected by the enterprise.
SEs often lim it t he dist r ibut ion of profit s. The non-profit distribution
constraint is meant to ensure that the general-interest is safeguarded. The
non-profit distribution constraint can be operationalized in different ways.
9. EU Definition
According to the definition of the European
Commission a social enterprise “operates by
providing goods and services for the market in an
entrepreneurial and sometimes innovative fashion
and uses its profits primarily to achieve social
objectives. It is managed in an open and responsible
manner and, in particular, involve employees,
consumers and stakeholders affected by its
commercial activities” (COM(2011) 682; Brussels,
25.10.2011)
10. Beyond theoretical definitions
• Since the 1990s the previous definition has
been incorporated in specific pieces of
legislation in several EU countries through
o adaptation of coop law
o introduction of general legal brands
• At the moment, in several EU countries
governmental working groups and draft
legislations are taking place
12. Social Economy organizations
(CIRIEC, 2012)
Total
Cooperatives and other
similar accepted types
Mutual companies and
other similar accepted
types
Associations, foundations
and other similar accepted
types
%
number
208,655
7%
21,790
1%
2,595,324
92%
14. Key facts: social enterprises in Italy
Since approval of Law 381/1991 annual growth rate from 10 to
20%
• in 1993: 1,479 social coops (National Cooperative
Department)
• in 2003: 6,159 (ISTAT)
• in 2005: 7,363 (ISTAT) – 59% A-type; 32.8% B-type; 8.2%
mixed or consortia
In 2011 (Unioncamere):
• 12,647 social cooperatives, with
• 513,000 people employed
• more than 30,000 disadvantaged workers integrated
• more than 4,000,000 users
• more than 10 billion euros turnover
15. Key facts: social enterprises in the UK
• Number of CICs registered in 2005-2012: 7,891
• 98% of applications to become a CIC processed in CIC Office
within 72 hours (2012-2013 CIC Annual Report)
• Main sectors of activity (90% of CICs):
o
o
o
o
Real Estate, Renting &Business
Education
Health and Social Work
Other Social or Personal Service
• 20% increase in CICs on the public register (2012-2013)
• annual turnover at least £1 billion annually
16. Success Factors
• Key factors contributing to social enterprise
development include
o Adequate legal/fiscal framework
o Networking within and among the families
of the social economy
o Clear partnerships with public authorities
o Research
