3rd INTERNATIONAL CONFERENCE ON QUANTITATIVE AND QUALITATIVE METHODOLOGIES IN THE ECONOMIC

AND ADMINISTRATIVE SCIENCESATHENS MAY 23-24, 2013

The need for the development of support services for Social

Cooperative Enterprises

Antonios VorloouMinistry of Labor, Social Security and Welfare

• Range of concepts in the different EU Member States:– solidarity economy– third sector

• Differences in institutional frameworks and terminologies

• Inspired by common values such as:– solidarity– social cohesion– Supremacy of the individual over capital– social Responsibility– Democratic decision-making

Social Economy

Social Economy

Participants are not driven by profit seeking,but

profits are reinvested for the benefit of the business and society.

It's a different way of doing businesswith the general interest, economic development, social

dimension and the democratic functioning

Social Economy in the EU

It employs over 11 million workers

6% of the total

France: 10% GDP and 12% employment

Social Economy in Greece

• High levels of unemployment• Especially in vulnerable parts of the population

Social Economy

• Job creation• Promotion of social cohesion• Promotion entrepreneurship in vulnerable

groups

Law on Social Economy and Social Entrepreneurship

Social Cooperative Enterprise

creating “socially oriented entrepreneurship”

L. 4019/2011

• Urban cooperative of social purpose with limited liability of its members which produces or trades products or services

• A business that is managed equally by the members, and its operation is based on collective welfare while pursuing the profit resulting from actions that only serve the public interest.

What is a Social Cooperative Enterprise

It is a

• one member - one vote regardless of the number of cooperative shares

• Distribution of profits annually, as follows:• Reserve up to 5%

• Bonus to workers up to 35%

• Re-investment for job creation and the business activities (social purpose) at least 60%

General Characteristics

Social Purpose

• Profit is a means to achieve the social purpose rather than the purpose of Koin.S.Ep.

• It is fulfilled by:– Selling products or services that have a social

benefit and also bring profits– Spending the profits for providing products or

services which create social benefit without income

Social Innovation

• Instruments: new ideas (products, services and business models) that simultaneously meet more effectively the needs of society• Purpose: To create new social relationships or

collaborations.• These innovations not only benefit society

but also enhance the ability of society to act.

Social Innovation

• Muhammad Yunus (Bangladesh)• Nobel price for Peace• Grammen Bank• Microcredit to non bankable

persons

Example of Social Innovation in Greece:• Social Cooperatives for mentally ill• Parents Cooperative of Chalandri (KoinSEp)

Social Franchising

• Its aim is to replicate a successful business model of social entrepreneurship - Innovative idea

• Reduce cost and the risk for model development

Categories Social Cooperative Enterprises (Koin.S.Ep.)

• Inclusion

• Social Care

• Collective and Productive Purpose

Inclusion• Aimed at integration into economic and social life of persons

belonging to vulnerable population groups:

– people with disabilities– dependent or detoxified from substances people– seropositive– prisoners / ex-prisoners– juvenile offenders

• In a Inclusion Koin.S.Ep. at least 40% of workers should belong to vulnerable population groups

• Establishing requires at least seven persons.

Social Care

• Aimed at producing and providing products and services of a social - welfare in specific population groups such as:– the elderly,– infants,– children,– people with disabilities and– people with chronic diseases

• Establishing requires at least five persons.

Collective and Productive Purpose

• Aim at promoting the local and collective interest, employment, strengthening social cohesion and local or regional development.

• Production of goods and services in areas such as:– culture– environment– ecology– education– public utility– local products– conservation of traditional activities and professions

• Establishing required at least five persons.

KoinSEp registered

319

77

KoinSEp

InclusionSocial CareCollective and Productive Pur-pose

Questionnaire

• In order to determine the needs of the emerging sector, the Ministry of Labor has distributed a questionnaire to the registered KoinSEp so as to identify the maturity of the business models being developed and implemented.

Questionnaire

• Included:– General info• Number of members• Sector of Activity

– Business Model• Type of Activity• Resources (human and other)• Clients (identified, who, marketing)• Income (state, private, %, pricing policy)• Social impact (measured, how)

– Other needs

Responses

• 35 questionnaires answered• Most from productive purpose• Most rely on state aid for launching and initial

stages and gradually directed to private sector income

• Business models not well developed• Clients roughly identified• Marketing policy not developed

Strategic Vision

• Social Economy and Entrepreneurship will contribute to sustainable economic development at the local, regional and national level strengthening social cohesion.

Purpose of Strategic Plan

• Rapid activation of the Ecosystem of Social Economy and Entrepreneurship, to create a favorable environment for the development of Koin.S.Ep.

Obstacles

• Lack of appropriate and accessible support services for Social Entrepreneurs

• Lack of specialized grant programs for starting up Koin.S.Ep.• Unfavorable economic environment for the development of

financial tools to assist Koin.S.Ep.• Administrative and other obstacles to the development of

Social Entrepreneurship• Low awareness of the new institution and the value of social

entrepreneurship

Strategy• Provide a framework of support and development of

Koin.S.Ep.• Provide the necessary start-up capital to support Koin.S.Ep. at

their first steps.• Development of financial support services in the short and

long term, in order to further expand and develop Koin.S.Ep.• Removing legal and administrative barriers and creating

favorable conditions for the development of Koin.S.Ep.• Informing local communities about the benefits of social

entrepreneurship• Developing transnationality actions to better utilize the

experience of other Member States

Axes

• 1st: the support of the social economy by creating central and regional support mechanisms

• 2nd: the financial support with grants for Koin.S.Ep.

• 3rd: the financial tools to strengthen and expand Koin.S.Ep.

1st AxisActivity 1:

Central Support Mechanism

Activity 2: Observatory of SE

and SE

Activity 3: Regional Support

Mechanisms

Activity 4: Complementary actions by

MoL services

• Development of tools / methodologies• Training of Multipliers• Supporting national networks

• Counseling / Mentoring• Support pre start-up / erasmus• Incubator services • Networking (Conferences / Fora)• Publicity

• Policy support for SE• Publicity - Workshops• Transnational Cooperation

Axis 2

Activity 6:Vouchers for

incubator type services

Activity 9: Grants on the basis of

jobs created

Activity 5: Support for the

creation of KoinSEp(pre start-up)

Activity 8: Grant for the initial operational plans of

Koin.S.Ep. for acquisition of shares by employees

Unified call for proposals

Activity 7: Training

Axis 3

Activity 10: Complementary Repayable Grant

Activity11: Preparatory actions for the development of a

Micro Finance Institution

• On-line Application

MoL servicesTechnical Steering

Committee

Consulting support

Technical Support

Activity 1: Central Support

Mechanism

National Level

Activity 3: Regional Support

MechanismsActivity 6:

Vouchers for incubator type

services

Activity 2: Observatory of SE

and SE

Regional Level Activity 9: Grants on the basis of jobs

created

Activity 5: Support for the

creation of KoinSEp

(pre start-up)

Activity 10: Complementary Repayable Grant

Activity11: Preparatory actions for the development of a

Micro Finance Institution

Activity 4: Complementary actions by MoL

services

European Commission

Activity 8: Grant for the initial operational plans of

Koin.S.Ep. for acquisition of shares

by employees

Δράση 7: Κατάρτιση

εργαζομένων σε ΚοινΣΕπ

Private Providers of Support

Services

Axis 1

Axis 2

Axis 3

Unified call for proposals

• Development of tools / methodologies• Training of Multipliers• Supporting national networks

• Policy support for SE• Publicity - Workshops• Transnational Cooperation

• Counseling / Mentoring• Support pre start-up / erasmus• Incubator services • Networking (Conferences / Fora)• Publicity

Consultation

• Strategic Plan submitted for consultation until 15 March 2013, in following web site:

• http://195.167.92.159:8443/diaveykeko/ΔημόσιαΔιαβούλευση.aspx

• Several suggestions have been integrated into the plan

Thank you