SOCIAL ENTREPRENEURSHIP AT HEART OF EU SOCIAL INNOVATION AGENDAMsc Zdenka M. KovačNOVUM, Institute for strategic aplicative research,Ljubljana

Sarajevo, 25-26 May, 2011

What kind of Social Agenda for the Western Balkans?

KEY TOPICS OF PRESENTATION EU 2020 and SOCIAL INNOVATION SOCIAL ENTREPRENEURSHIP IN EU AND

OECD SOCIAL ENTREPRENEUSHIP IN SLOVENIA TOWARDS REGIONAL NETWORKING FOR

SOCIAL ENTREPRENEURSHIP

THE GLOBAL CRISES - OPPORTUNITY FOR CHANGE

European societies are facing profoundeconomic and social transformation

externally coused by economic globalisation and

climate change and internally by demographic

pressure and social developments!

The need for “Social innovation” promoted through EU 2020 Agenda, represents EU

Commission respond

THREE DEVELOPMENT PRIORITIES FOR EU

Smart growthSustainable growthInclusive growth

5 TARGETS FOR THE EU IN 20201. Employment

75% of the 20-64 year-olds to be employed2. R&D / innovation

3% of the EU's GDP (public and private combined) to be invested in R&D/innovation

3. Climate change / energy greenhouse gas emissions 20% (or even 30%, if the conditions

are right) lower than 1990 20% of energy from renewables 20% increase in energy efficiency

4. Education and skilling up Reducing school drop-out rates below 10% at least 40% of 30-34–year-olds completing third level

education 5. Poverty / social exclusion

at least 20 million fewer people in or at risk of poverty and social exclusion

 

INCLUSIVE GROWTHTo foster economy growth by delivering

economic, social and territorial cohesion policies with following targets:

75% employment rate for women and men aged 20-64 by 2020– achieved by getting more people into work, especially women, the young, older and low-skilled people and legal migrants

better educational attainment – in particular:– reducing school drop-out rates below 10% – at least 40% of 30-34–year-olds completing third level education (or equivalent)

at least 20 million fewer people in or at risk of poverty and social exclusion

HOW WILL THE EU BOOST INCLUSIVE GROWTH?

2 flagship initiatives:1. Agenda for new skills and jobs

for individuals – helping people acquire new skills, adapt to a changing labour market and make successful career shifts

collectively – modernising labour markets to raise employment levels, reduce unemployment, raise labour productivity and ensuring the sustainability of our social models

2. European platform against poverty ensuring economic, social and territorial cohesion guaranteeing respect for the fundamental rights of

people experiencing poverty and social exclusion, and enabling them to live in dignity and take an active part in society

mobilising support to help people integrate in the communities where they live, get training and help to find a job and have access to social benefits

THE NEED FOR SOCIAL INNOVATIONIt is becoming evident that exiting economic

and social development models need innovation as existing tools are not sufficient for achieving set targets!

Technological and economic innovations are not enough anymore, social innovation is

becoming a MUST!

WHAT IS SOCIAL INNOVATION IN EU CONTEXT?

Social innovation refers to profound changes of the way social (prevailingly public!) sector is developing and solving social problems

It is about innovating ways to meet so far unmet social needs by innovating all three sectors public, private for profit and private non for profit (CSO’s)

It is about skills innovation, regional/local governance innovation, eco-innovation……..

It is about transformation of social transfers policies into social investment policies!

SOCIAL ENTREPRENEURSHIP AS KEY TOOL FOR SOCIAL INNOVATION AGENDA Social entrepreneurship though essentiall

part of so far EU economic model for decades, is now becoming the heart of EU Social Innovation Agenda

The research show the main “added value” of social entrepreneurship in its abbility to stimulate profound “social and economic transformation” by using entrepreneurial tools to meet social objectives!

SOCIAL ENTERPRISING “Social enterprising is thus innovative

business model to meet both economic and social objectives and significantly contribute to labour market integration, social inclusion and economic development.

Social Enterprises are in the core of social innovation!”

(Noya,OECD 2009)

SOCIAL ECONOMY/ENTREPRENEURSHIP IN EU Social entrepreneurship/social economy in EU

includes: cooperatives, associations, foundations , mutuals and more new form of “social enterprise” (limited liability company not profit oriented).

In EU it contributes 10% of GDP and around 11 million jobs.

It operates in almost all sectors of economy

KEY EU POLICIES TO BOOST SOCIAL ENTREPRENEURSHIP Social economy since last year is official specific

part of EU Single Market, defined in the new Single Market Act

To boost its growth EU Commission will: Further develop EU legal Framework for EU

cooperatives, associations and foundations Promote Social business initiative through facilitation

of socially innovative corporate projects like:social rating, ethical and environmental labeling, revised public procurement rules and new regime for social investment funds

Introduce new corporate governance mechanisms Design new set of measures within all DGs to support

socio-economic innovation through social enterprising

SOCIAL ENTERPRISING IN OECD In several OECD countries a new social

entrepreneurs are emerging out of classic for profit oriented entrepreneurs like Bill Gates, Oprah Winfrey, Jeff Skoll, Jamie Oliver,Bill Drayton….

Social entrepreneurship today represents a consolidated and growing trend in most OECD countries!

OECD suggest immidiate policy action through: facilitation of the development of social investment

market place to support social entrepreneurs adoption of evaluation methods such as Social

Return on Investments Development of specific skill’s pool for managers of

social enterprises

SOCIAL ENTERPRISING IN SLOVENIA (1)

In Slovenia like in all ex-YU countries, all forms of social economy exists but are significantly lagging behind EU average, contributing only about 2-3% to GDP and around the same percentage of jobs (mainly in agri- cooperatives, companies and sheltered centres for disabled)

Untill lately this sector was not recognised as important part of socio-economic development!

Support environment was tottaly missing!

SOCIAL ENTERPRISING IN SLOVENIA (2) After 15 years of struggle finnaly in March

2011 new LAW ON SOCIAL ENTREPRENEURSHIP was adopted, promising NEW ERA for Social Economy in Slovenia!

NEW STRATEGY for promotion of social enterprising is expected to be adopted by the end 2011!

NEW LAW on workers and social cooperatives is to follow new Parliamentary initiative!

Social enterprising is becoming FLAGSHIP THEME in media and through promotion events!

LAW ON SOCIAL ETREPRENURSHIP Introduce definition of social enterpreneurship in SLO

context Introduce open model of social enterprising allowing all

legal forms from societies, private institutes, foundations, mutuals, cooperatives and limited liability companies

they are to follow main principles of social enterprising as defined by Law: market based private initiatiative, private ownership, governance based on one member one vote (not

dependant on capital share), social and/or environmental objectives, profits are reinvested for development of enterprise, combination of employees and voluntary workforce, solidarity between members and employees and with

community

LAW ON SOCIAL ENTREPRENEURSHIP Introduce two types of social enterprises: A- social enterprises delivering general

social and eco benefits for the community through specific products and services. Law defines primary sectors where they can operate!

B- social enterprises with main focus on social and work integration of vulnerable groups, status and specific support obtained in case of at least 40% of placement and jobs created for vulnerable groups!

SPECIFIC REGISTER AND SPECIFIC POLICIES REQUIRED Law introduce specific registration and

monitoring proceedures Law requires from the governnment within 6

months after adoption of the Law to deliver Strategy and specific policies of various ministries to promote social enterprising

Council for social entrepreneurship comprising governmental and nongovernmental members is to be set up as main driver and monitoring body!

AMBITIOUS TARGETS FOR THE STRATEGY Within next 5 years to reduce the GAP

betwen EU average in terms of jobs created through SE sector,

which means Development of support environment for

social enterprises to create betwen 50 -70.000 new jobs in Slovenia within next 5 years.

NETWORKING FOR SOCIAL ENTREPRENEURSHIP IN THE REGION Slovenian key SE related actors have started

developing cooperation with RCC to start Networking for Social Enterprising in the region facing same “transitional mind and policy” gaps by:

bringing together ongoing fragmented CSO networks , organizing them into transparent and sustainble mutual learning platform,

starting cooperation among governments, employers and unions in the region focused on social enterprise promotion,

Thus significantly contribute to New Social and Economic Agenda in the region!

FIRST STEPS TOWARDS REGIONAL NETWORKING First concept paper on regional networking

lounched and well accepted at the international conference on social entrepreneurship in Ljubljana in April this year

RCC will follow up with organizing special regional meeting on Regional Social Enterprise Agenda on 19th of June this year.

SE FOR SUSTAINABLE DEVELOPMENT OF THE REGION LET THE SOCIAL ENTERPRISING AND

REVITALISATION OF COOPERATIVE BUSINESS MODEL BECOME CORE INNOVATION OF NEW SOCIAL AGENDA FOR SOUTH EAST EUROPE!

THANK YOU FOR LISTENING!