The document outlines a framework model for supporting the social economy in Central Europe regions. It identifies drivers and challenges for social enterprises through a PEST analysis. The emerging framework model focuses on governance, business strategies, awareness, and innovation for social enterprises. It notes both strengths like multitasking abilities and weaknesses like a need for diverse funding sources. The framework also outlines reported needs from the regions like improving legal frameworks and fiscal policies and boosting social networks and education to strengthen the social enterprise ecosystem.

1. 23rd March 2022
Framework model for support of social economy in
CE regions
CE RESPONSIBLE | Metropolitan City of Bologna|eco&eco

2. TAKING COOPERATION FORWARD 2
Framework model
Methodology
Each partner asked to identify the drivers for SEs development in their
local contest
PEST Analysis (Political, Economic, Social, Technological)  assessing
major external factors influencing operation of an organization
CE Responsible  PEST Analysis applied to identify drivers and potential
challenges for SEs
Emerging framework model with respect to:
1. Governance
2. Business strategies
3. Awareness
4. Innovation

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Framework model
Governance and pillars
Long-lasting tradition of mutual help, civil organizations and coopera-
tives, coming from the so called “Bismarckian legacy” and the church
Enforcement of welfare state in all countries, with the strong diversion of
Western (Germany, Austria and Italy) from Eastern countries (rigid State
control on civil society and organizations)
End of the communist rule  a new flourishing of civil society, but even a
mistrust for cooperatives and socially organized work
Diffusion of common elements in welfare and third sector, due to the
confluence in the European Union
Welfare state crisis  privatization and managerialization of the sector,
higher recourse to grants and projects-based financing

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Framework model
Strengths:
- Multitasking attitude of ETSs
- Different business models applied, from
semi-public to market-oriented
- Existing funding programs for SEs
Weaknesses:
- Need for different financial sources
- Progressive shift from budgetary finan-
cing to performance-related payments
and service contracting
- Few SEs consolidating to the scale up
phase (infancy of the sector)
Opportunities:
- Evolution of the market and ETSs’ skills
- Tax reforms for the benefit of ETSs
- New fields of development related to
climate and environmental issues
Threats:
- Persistence of blurry legal frameworks
- General reduction in consumer purcha-
sing power (even due to pandemics)
- Absence of a strategic policy approach
by governments
Business strategies

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Framework model
Awareness
Strengths:
- Higher attention for CSR from producers
and consumers
- Higher request for environmental and
social issues (critical consumption)
- EU and other institutions’ support to CSR
- National tradition in mutual cooperation
- Established networks and incubators
Weaknesses:
- Low visibility for CSR’s positive effects
- No official reporting system for CSR
impact
- Cost of the activities
- No legal obligation for CSR
Opportunities:
- Evolution of the market and ETSs’ skills
- Tax reforms for the benefit of ETSs
- New fields of development related to
climate and environmental issues
Threats:
- Persistence of blurry legal frameworks
- Difficulties for firms
- Absence of a strategic policy approach
by governments

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Framework model
Strengths:
- Role of prizes for social innovation
- EU programmes for social economy
- Relevant pilot cases in Europe (SLK
Municipal SEs, ITA Community coops)
- Existing services for social start-ups in
many CE countries
Weaknesses:
- Low public support to social innovation
in many countries;
- Bureaucratic approach of EU
programmes;
- Bottlenecks in SEs’ transition from start
up to long-term growth
Opportunities:
- Involvement of altruistic entrepre-
neurs in supporting social start-ups
Threats:
- Economic difficulties stopping private
support
Innovation

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Framework model
Reported Needs
Political
Legal framework ■ ■ ■ ■ ■ ■ ■
Municipal SEs ■
Subsidiarity ■
Economic
Fiscal framework ■ ■ ■ ■ ■
Private financing ■ ■
Social
Campaign on SEs ■ ■ ■
Communication /
stakeholders ■ ■
Technical
Supporting Ntwks ■ ■ ■
SEs education ■ ■
Business sector
education ■
Administrative
Support to SEs ■
Studies &
assessments ■ ■

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Framework model
Conclusions
No one-size-fits-all legal form for SEs, significant differences with respect
to national contexts
SEs’ activities: from traditional (work integration) to “nascent” fields
(local food production/distribution, environment, refugees’, …)
SEs’ attitudes: from private market orientation to leaning on public
support for providing goods/services formerly on welfare state
Need to boost the social ecosystem, through business networks, legal
instruments and new organizational models
Altrupreneurs: a relevant resource to fund/mentor/support the growth of
SEs’ system

9. TAKING COOPERATION FORWARD 9
Francesco Silvestri, eco&eco Ltd
fsilvestri@eco-eco.it
orsola.milani@cittametropolitana.bo.it
valeria.murgolo@cittametropolitana.bo.it
http://www.interreg-central.eu/ce-responsible
facebook.com/CE-Responsible-112985660155613/
twitter.com/CeResponsible
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