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What is social entrepreneurship?

  1. What is social entrepreneurship? Agnese Lešinska, researcher CENTRE FOR PUBLIC POLICY Activity is financed by Iceland, Liechtenstein and Norway in framework of NGO Activity Support Measure. NGO Activity Support Measure is financed with financial support from EEA Financial Mechanism and Republic of Latvia.
  2. PROVIDUS •NGO, established 10 years ago •Think-tank and do-tank •Policy researchers •Active in different fields – criminal justice, anticorruption issues, energy policy, social entrepreneurship, EU issues
  3. Research project on SE •2010-2011 •Aim – to identify legal framework (definitions, criteria), support instruments (financial, non financial) for social entrepreneurs in 11 EU countries and provide proposals for Latvia •Team - PROVIDUS and Civic Alliance –Latvia •Authors – Agnese Lešinska, Gatis Litvins, Rasma Pīpiķe, Inta Šimanska, Oskars Kupics, Katrīne Bušēvica •Financial support – The Soros Foundation - Latvia
  4. What is social enterprise in Europe? •There is no common definition •Criteria to describe SE: 1)Aim to solve social problem rather than make a profit for their owners or shareholders 2)an operator in the social economy 3)it operates by providing goods and services for the market in an entrepreneurial and innovative fashion 4)it is managed in an open and responsible manner and, in particular, involve employees, consumers and stakeholders affected by its commercial activities
  5. Why we need SE? •Addition toll to solve social problems •Operates for societal benefit •Involves all groups – stakeholders, target groups, local society •More reliable and stable business model
  6. Concept in EU •Pioneers – Italy, 1991 Law on social cooperatives •From the beginning – work integration organizations, nowadays – dealing with different social problems (from health care to culture) •EC “Social Business Initiative” (2011) – to foster SE concept in EU •From cooperatives to social firms
  7. Info •Approximately one in four businesses is social enterprise in EU (EU, 2009) •The social economy employs over 11 million people in the EU - 6 % of total employment (EU, 2009) •56% of social enterprises developed a new product or service in the last 12 months compared to 43% of other business organizations (UK, 2013) •38% of all social enterprises work in the most deprived communities in the UK (2013)
  8. Forms of activities 2 tipical forms of activities: 1)businesses involving vulnerable persons or disabled persons 2)businesses with a method of production of goods or services with a social objective
  9. Examples from LV •“Žēlsirdības māja” – work integration SE •“Lude” – work integration + recycling business •“Otra elpa” – charity shops + recycling business
  10. Supportive eco-system •Legal recognition •Effective financial support
  11. Legal framework •Specific legal form for SE (Social Firm (UK), Social cooperative (Italy, France); •Specific statuss just for business organizations •Specific statuss for NGO and business organizations •Organization declares itself for the statuss
  12. State support •Incubators for SE (Greece, UK) •Support for Social investors (UK) •Tax regime (Malta, UK – income tax) •Grant programmes (Italy, UK, Finland) •Awareness campaigns
  13. Situation in Latvia •No legal framework for SU •Can be business companies or NGO (with limitations) •No specific financial support from state (f.e.- subsidies for unemployed or disabled persons) •Start up grants – from the Soros Foundation Latvia •Problems to get loans from financial institutions
  14. Situation in Latvia •Mostly dealing with unemployment issues •NGO and business company legal form •Start-up companies or not older than 3 years •Small companies, employing 3-5 permanent staff •Not more than 50 companies
  15. Bright future.. •Law on SE – legal form •State support (awareness raising campaigns, tax regime, volunteers) •Financial instruments for SE (to start and to expand) •SE Association – umbrella organization •Consultancy agencies (incubators..) •Training
  16. Role of PROVIDUS •To share knowledge •To help state institutions to make better solutions •To provide expertise
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