Case Study Russia

1. Social Impact Days
SESSION I: SOCIAL INNOVATIONS IN CHANGING SOCIETIES
CASE: RUSSIA
OCTOBER 16-19, 2014
TBILISI, GEORGIA

2. What are the nature and the role of social innovation in Russia?
oSocial entrepreneurship is a relatively new phenomenon for Russia. Institutionalization process
is in its early stage.
oThere is no common understanding of what is difference between charities, social enterprises
and socially responsible businesses.
oRussia is going through a transition from separated social entrepreneurs who are not aware of
the concept and their position in it to a growing public interest and attention for social
entrepreneurship.
oSocial entrepreneurship concept is being driven bottom-up.
oDemand for social innovations in Russia needs to be uncovered. At the moment the level of
social entrepreneurial activity in among the lowest compared to other countries.

3. What are the acute social/societal issues inRussia,
which need innovative solutions?
TOP-5 societal challenges
oAlcoholism, drug addiction (71l of beer & 9.8l of vodka per capita)
oCorruption and Bureaucracy (85% of respondents believe that bureaucracy impact has not
decreased in the last 10-12 years)
oPublic wealth (Russia takes 55th place out of 186 in the Human Development Index, Gini
coefficient was 16.4 in 2012)
oUnemployment (around 5,5% in 2012-2013, unemployment is not high, but people feel that this
is the second most important societal problem in Russia)
oInflation, rising prices for goods and services (5,57% in 2013)

4. What are current trends and challenges in the field of social innovations?
oLegislation concerning social entrepreneurs specifically does not exist in Russia at the moment
oAdministrative barriers for small businesses are rather high in Russia
oFew platforms for social entrepreneurs exist
oLimited information on social innovations
oEfficient incubation of social projects and initiatives is required
oLack of replication mechanisms for successful projects
oLack of professionalism among social entrepreneurs
oNo impact measurement system is in place
oGrowing interest of HNWIs towards venture philanthropy and social entrepreneurship
oIncrease in general awareness of social entrepreneurship
oThere are several infrastructural players who drive social innovations

5. Who are the drivers of social innovations?
oFoundations and private donors (e.g. Nashe Budushee)
oUnions, associations, professional platforms (e.g. Impact Hub)
oBusinesses
oResearches, educational institutions (e.g. Higher School of Economics)
oSocial enterpreneurs, civic activists (e.g. Aurora Horse Center, Syktyvkar, Russia)
oState (state and regional grants)
oSocially deprived/disabled persons (e.g. GUIMZ at the Moscow State Technical University
named after Bauman)

6. Sources
UISIS, Basic consumer price index for goods and services. 30 April 2014
UISIS, The rate of unemployment. 30 April 2014
UISIS, Sales of alcoholic beverages per capita. 30 April 2014
Levada-center 2013. “Level of corruption and bureaucracy impact in the country is not reduced”
UNDP 2013. “Human Development Report 2013”
UISIS, Funds coefficient. 30 April 2014
SEFORIS. “The state of social entrepreneurship in Russia”, April 2014
Moskovskaya A. 2011. “Socialnoe predprinimatelstvo v Rossii: praktika i issledovaniya, HSE Publishers,
Moscow