This document summarizes key information about social enterprises in Europe. It discusses the fields that social enterprises commonly operate in, such as social services and agriculture. It also describes the European Commission's Social Business Initiative, which aims to support social enterprises through initiatives like making funding and legal systems more friendly. Specific examples of social enterprises are provided, such as ones focused on reducing food waste and providing education. Funding options for social enterprises are explored, along with resources to support their work.

1. IO4/Unit 2:
Growth in the EU Social
Enterprise Sector
2017-1-BG01-KA202-036212

2. Table of content
2.1 Fields where social enterprises operate
2.2 The Social Business Initiative
2.3 Making it easier for social enterprises to obtain funding
2.4 Key resources

3. 2.1 Fields where social enterprises operate
Social entrepreneurship is the process of social regeneration, economic development
and sustainable subsistence. A social entrepreneur is committed to a social mission and
searches to reach a social impact through their activities or the people that they
employ.
For example:
Social and economic integration of the disadvantaged and excluded
Social services of general interest
Other social and community services
Public services
Land-based industries and the environment
Cultural, tourism, sport and recreational activities
Practicing solidarity with developing countries

4. Social entrepreneurs are also active in the agro-
business.
Their aim is to increase the agricultural efficiency
in a sustainable manner by offering various products
and services.
Social entrepreneurship is very important for
economic development, social improvement,
enforcement, nutrition security, sustainable
development, and leadership development in agro-
business.

5. Some examples:
 Rubies in the Rubble
Rubies in the Rubble is a UK social enterprise that tackles food waste and
unemployment with its line of chutney and jams.
Made from surplus fruit and vegetables, Rubies in the Rubble's chutneys and jams are
handmade and contribute toward positive social change.
 Greenside Up,
Greenside up aim to create a transformative change by educating people about social
food growing. It began as an educational opportunity to tackle the unemployment
issues that surrounded the area. The landscaping and salad and herb social enterprise
that followed came from those beginnings. Their Garden School Growth Project near
Marley Park offers free education to unemployed and disadvantaged people. They
fund the initiative by revenue generated by fee paying customers.

6. 2.2 The Social Business Initiative
The Social Business Initiative (SBI) was launched in 2011. It aims to introduce a short-
term action plan to support the development of social enterprises, key stakeholders
in the social economy and social innovation. Whether it's in communities of the
farmer or urban food lands, the targets here are poverty alleviation, job creation,
and business-minded non-profit organizations all around the world (1).
It has three main themes (2):
Theme 1: Making it easier for social enterprises to obtain funding
Theme 2: Increasing the visibility of social entrepreneurship
Theme 3: Making the legal environment friendlier for social enterprises
More recently, the business co-operation between social economy enterprises and
more traditional, profit-oriented firms is stimulated.
More information can be found at https://ec.europa.eu/growth/sectors/social-
economy/enterprises_en.

7. 2.3 Making it easier for social enterprises to obtain funding
What to think about when you want to set up a social enterprise:
• You will need to buy a expensive items (equipment, building, etc.) to carry out your
activities. You therefore most likely will have to borrow the money.
• All organisations require money in order to operate. You need to e.g. manage dips in
cash availability, support growing, begin a new project, buy equipment, furniture or
property, etc.
• There are a broad range of investment alternatives ranging from investment funding
to grant funding. You should think carefully when selecting how you will get funded.
• Depending on the funding you opted for, it may require a lot of administrative work,
depending on your funders and/or investors as well as other stakeholders’
requirements.
• You will need the funding to carry you forward until your cash income exceeds your
costs.

8. In order to get investment or working capital you will need to know:
Why do you need it?
How much do you need
& by when?
What type of finance do
you need?
How will you access it?
Startup capital Plan both for short-term
and long-term to ensure
sustainability
Investment Ensure you have the
right legal structureWorking capital Contract
Development capital Trading / sales Map potential funders /
clients / investors
Purchase capital Loans Develop a funding
strategy
Grant Develop a business plan
and financial forecasts
Gifts Check the requirements
Membership Fees
Corporate sponsorship
2.3.1 Developing a funding strategy

9. You will need to persuade your investors that they
make a good investment. Generally, a business plan
will have to be created, together with financial or
cash flow predictions.
A business plan also forms a good principle for the
preparation of grant funding usages. It will help you
start planning on:
• Where you intend to source the finance and pay it
back in installments
• The appropriateness of those sources of finance to
your enterprise/ project and how it will generate
turnover and envisaged profit
• Your longer term requirements to allow you to
meet your strategic needs and continue operating
your business in a profitable manner.

10. 2.3.2 Different types of finance
Start up / development
capital (non-recurring
Expenditure)
Working capital (recurring
expenditure)
Capital purchase
one-off (non-recurring high
value expenditure)
Rent deposit (security for
payment of the rent and
performance of the tenant's
covenants)
Salaries and employment costs Website
Initial recruitment costs Rent Buildings/ property
Equipment purchase
Utilities (water, electricity,
heating, etc.)
IT equipment
Property purchase Phone and internet charges Machinery
Website Insurances Motor vehicles
Furniture Marketing, promotion Fixtures and fittings
Fixtures and fittings Print, postage, stationary
Legal costs associated with
start- up
Stock purchases
Repairs

11. 2.4 Key Resources
As the case-studies demonstrate, those who run successful social enterprises are
entrepreneurial, resilient and adaptable. They are representative of organisations
that have succeeded in marrying social goals with an enterprise model and earn a
significant proportion of their income from trading activities.
 Grow it yourself
It is a not for profit social enterprise helping people to grow some of their own
food at home, at work, at school and in the community. They support over 500000
people and 8000 community food groups in the UK and Ireland.
 Garden school
This project was established to value and encourage the participation of
vulnerable persons and the unemployed in horticultural activities that can
enhance their physical, emotional, intellectual and social development.
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12. Local Successful Examples for partner
country: Turkey
 The website «tarimsalpazarlama.com» was founded by Tülin Akın. In this website
farmers involved in social enterprises can post advertisements free of charge for both
purchase and sales, reach to publications related with agriculture activities and can
view the data for agricultural commodity exchange. Thanks to these activities in the
field of social entrepreneurship, Tülin Akın has won a number of prizes by Endeavour
and Ashoka.
 Since 2013 Tarimsalpazarlama.com has reached to 250.000 members.
For more information:
 https://www.tarimsalpazarlama.com/

13. 1. European Commission Report, Social enterprises and their eco-systems: A
European mapping report, 2016.
2. The Social Business Initiative of the European Commission, European
Commission, 2014.
References

14. Disclaimer
For further information, related to the ECOGARD project, please visit the project’s website
at https://ecogardening.eu/ or visit us at https://www.facebook.com/Ecogard/.
Download our mobile app at
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This project ( ECOGARD project - 2017-1-BG01-KA202-036212) has been funded with
support from the European Commission (Erasmus+ Programme). This publication reflects
the views only of the author, and the Commission cannot be held responsible for any use
which may be made of the information contained therein.