UCL The Role of European Social Enterprises in Economies and Public Policy Prof. Marthe Nyssens...
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Transcript of UCL The Role of European Social Enterprises in Economies and Public Policy Prof. Marthe Nyssens...
UCL
The Role of European Social Enterprises in Economies and
Public Policy
Prof. Marthe NyssensCIRTES, Catholic University of Louvain
Prof. Jacques DEFOURNY Center for Social Economy
University of Liège Belgium
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1. The socio-economic context of the debate
2. The EMES conception of SE
3. Social enterprises in the whole social economy
4. Social Enterprises between ideal-type and institutionalisation
5. Conclusion
OVERVIEW
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The pioneering initiatives• Late 1970’ – beginning 1980’• Context
– Increasing structural unemployment– Unmet emerging social needs– Limits of public financing
• Limits of traditional social and employment policies to tackle social exclusion : – Long term unemployed or low qualified people– Social problems – Refugees, immigrants– “De – institutionalisation” of mental ill people (Italy,
Sweden…)– …
1. The socio-economic context of the debate
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• Innovative entrepreneurial behaviours driven by a primary social purpose mainly took place within the third sector (WISE, Personal services…)
• Changes in public funding of the third sector played an important role: forms - rather than the volume - of public funding transformed: – quasi-market– second labor market programs
• Key social actors shaping the debate– Federative bodies advocate for a better recognition of
their specificities (for instance, the Italian Consorzi)
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PUBLIC POLICIES PROMOTING SOCIAL ENTERPRISES IN EUROPE
• Public policies focusing explicitly on the promotion of SE (UK since 2002, EQUAL programme,…)
• Setting up of public or public-private funds providing seed capital, loans and other financial supports (France, Belgium,…)
• Promoting access of SE to public procurement (e.g. local public goods)
• New legal frameworks designed for SE
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• New legal frameworks related to the "cooperative model":
• Italy (1991): "social cooperative« (pioneering role)• Portugal (1998): "social solidarity cooperative"• Spain (1999): "social initiative cooperative "• Greece (1999) " social co-operative with limited liability "• France (2001): "cooperative society of collective interest " • Poland (2006): " act on social cooperative "
• New legal frameworks based on a more "open model":
• Belgium (1995): "social purpose company" • UK (2004): "community interest company" • Finland (2004): " act on social enterprise " • Italy (2006): "social enterprise "
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Characteristics of these laws reflecting• Economic democracy (14/16 laws)
• limits in voting power • limits return on capital shares
• cap on distribution of profit • asset locks
• Multiple stakeholders ownership
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2. The “EMES” approach
An « ideal-type » social enterprise defined by
• An economic project– A continuous production with some paid work– An economic risk
• Primacy of social aim – Limited profit distribution
• A participatory governance– A high degree of autonomy– Stakeholders’ involvement – A decision-making power not based on capital
ownership
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THE EMES DEFINITION AS AN « IDEAL-TYPE »
• These criteria are not conditions to be strictly met to deserve the label of social enterprise
• They rather define an « ideal-type » (abstract construction) within the « third sector » like a star within the « galaxy » of social enterprises
A methodological tool rather than a normative framework
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The concept of social enterpriseis double-sided:
Social enterprises can be
NEW ENTITIES
OR
ALREADY EXISTING ORGANISATIONS
reshaped by new dynamics
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Co-operatives Non-profit Organisations
3. Social enterprises in the whole social economy
A. THE SOCIAL ENTERPRISE AS A BRIDGE BETWEEN THE ASSOCIATIVE (NPOs) AND THE CO-OPERATIVE WORLDS
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Co-operatives Non-profit Organisations
UserCo-ops
WorkerCo-ops Social
Co-ops
A. THE SOCIAL ENTERPRISE AS A BRIDGE BETWEEN THE ASSOCIATIVE (NPOs) AND THE CO-OPERATIVE WORLDS
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Co-operatives Non-profit Organisations
Production-oriented NPOs
AdvocacyNPOs
NPOstransformed
into social firms
A. THE SOCIAL ENTERPRISE AS A BRIDGE BETWEEN THE ASSOCIATIVE (NPOs) AND THE CO-OPERATIVE WORLDS
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Co-operatives Non-profit Organisations
SOCIALENTERPRISES
A. THE SOCIAL ENTERPRISE AS A BRIDGE BETWEEN THE ASSOCIATIVE (NPOs) AND THE CO-OPERATIVE WORLDS
. ..
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Social economy(third sector)
Redistribution
State(public agencies)
Not-for profit For-profit
Market
Privatecompanies
Reciprocity
Community(households, families)
Public
Private
Informal Formal
B. LOCATING SE IN THE WHOLE ECONOMY
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4. Social Enterprises
Between ideal-type and institutionalisation
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Empirical field:Work Integration Social Enterprise
(WISE)The major objective of WISE is to help poorly qualified
unemployed people, who are at risk of permanent exclusion from the labour market. WISEs integrate
them back into work and society in general, through productive activity.
PERSE project : 15 WISEs by country (162 WISEs across Europe)
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STOfin = sosiaalinen työosuuskunta = labour cooperativesVOfin = vajaakuntoisten osuuskunta = co-operative social firms for disabled peopleTKfin = työkeskus = work centresMSJOYfin = muut sosiaalialan järjestöjen omistamat yritykset = other enterprises owned by associations for the disabled
Pekka PättiniemiWISEs in Finland
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Social Enterprise:
between ideal-type …
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SOCIALENTERPRISE
Economic Goals
Social Goals
Socio-political Goals
a) Multiple Goals Social Enterprise
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In the board :
• not only in the hands of shareholders to avoid profit maximizing behavior (social benefit mission)
• Different types of stakeholders for different goals
b) Multiple Stakeholders Social Enterprise
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Market
Donations, volunteers
Public financing
c) Multiple Resources Social Enterprise
SOCIALENTERPRISE
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(Social Enterprise:
between ideal-type …
…and institutionalisation
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• In the 1980’ :WISEs implementing Active Labor Policies (ALP)
before their institutional existence• From the 1990’:
With the process of institutionalisation, most of the WISEs are supported by (specific) public schemes.
=> These Active Labor Policies frame their action …
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- New public schemes targeting work integration social enterprises :
• Entreprise d’insertion, association intermédiaire, FR• Entreprises de formation par le travail, entreprises d’insertion,… Belgium• Social economy program, Ireland• Beschäftigungsgesellschaften, Germany• Integration enterprise program, Portugal• Integration enterprise program, Spain • Social Enterprise, Finland
=> This has even led to the concept of social enterprise, in some countries, being systematically associated with such employment creation initiatives
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CAVAf
SOCIALIZATION THROUGHPRODUCTIVY
ACTIVITY
EIf
AIf
ETTIf
GEIQf
EFTb
LVdk
BWg
KBg
BLUIg
STOfin
ILMOuk
VOuk
TRANSITIONAL EMPLOYMENT SUPPORTED BY SHORT-TERM SUBSIDIES
GFsw
CBuk
WCOuk
SBGg
EIp
EIb
IBb
EINf
PERMANENT
SELF-FINANCED
JOBS(*)
SWirl
ETAb
BWb
SWb
SHsw
EPp
SEirl
JOBS SUPPORTED BY LONG-TERM SUBSIDIES
Tkfin
MSJOYfin
BVdk
VOfin
ONCEs
EIs
CEEs
COSOi
RQf
SFuk
Ruk
SKsw
AZCb
COs
ESb
Types of work integration in WISEs
Source : ELEXIES/PERSE
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Main characteristic of target groups
Persons with mental or physical disabilities
« Abled » unemployed workers
WCOuk
WCOuk
ETAb
Women at risk
Minorities Low-qualified
young people
«Social handicap»
(alcohol, drug)
«Hard-to-place»
(long-term)
BWb
COSOi
EPp
CEEe
ONCEe
COe
SBGa
BWa
Aif
RQf
CBuk
KBa
SEWirl
LDirl
CBuk
LDirl
CSFfin
RQf
EFTb
EIe
RQf
ETTIf
GEIQf
CBuk
ILMOuk
CSFfin
SBGa
BWa
Eip
Eie
CAVAf
RQf
SEWirl
CSFfin
BVdk
PDLDuk
CSFDPfin
SOCOsw
SHsw
EIb
SOLIDRb
IBb AIf
ETTIf EINf
KBa BWa
LDirl
EIp SBGa
UCSirl LCOfin
CSFfin RQf
GEIQf BLUIa
SOLIDRb
ESRb
SWb
AZCbCOSOi
SEWirl
LVdk
LVdk
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SOCIALENTERPRISE
Economic Goals
Social Goals
Socio-political Goals
a) Multiple Goals Social Enterprise
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• Economics goals: support work and social integration– adapted to the capacities of disadvantaged groups
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Social services 29 19%Recycling 28 18%
Services for enterprises 19 12%Personal services 14 9%
Gardening, urban regenerat. 12 8%Processing industry 10 6%
Building industry 9 6%Restaurants and hotels 8 5%
Traffic, telecommunication 7 5%Culture and leisure 7 5%
Education 5 3%Commerce 3 2%
Placement services 3 2%Agriculture 1 1%
Total 155 100%
Type of production of European WISEsNb WISE
Source : PERSESource : PERSE
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WITH THE PROCESS OF INSTITUTIONALISATION– no public financing for collective type of production…– pressures from new entrants : for profit firms
• Economics goals: support work and social integration– adapted to the capacities of disadvantaged groups– developing market niches : a successful strategy– collective dimension of the production : social services,
environmental field
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• Social goals :– For all: work integration at the core of the mission– For some of them: collective dimension of the
production– Empowerment of excluded workers through
democratic management structure
WITH THE PROCESS OF INSTITUTIONALISATION– Instrument to the integration in the first labour market based on a transitional model of WISE
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CAVAf
SOCIALIZATION THROUGHPRODUCTIVY
ACTIVITY
EIf
AIf
ETTIf
GEIQf
EFTb
LVdk
BWg
KBg
BLUIg
STOfin
ILMOuk
VOuk
TRANSITIONAL EMPLOYMENT SUPPORTED BY SHORT-TERM SUBSIDIES
GFsw
CBuk
WCOuk
SGg
EIp
EIb
IBb
EINf
PERMANENT
SELF-FINANCED
JOBS(*)
SWirl
ETAb
BWb
SWb
SHsw
EPp
SEirl
JOBS SUPPORTED BY LONG-TERM SUBSIDIES
Tkfin
MSJOYfin
BVdk
Types of work integration in WISEs
Source : ELEXIES/PERSE
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• Social goals :– For all: work integration at the core of the mission– For some of them: collective dimension of the
production– Empowerment of excluded workers through
democratic management structure
WITH THE PROCESS OF INSTITUTIONALISATION– Instrument to the integration in the first labour market based on a transitional model of WISE
=> Weaker participation of workers
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• Economic goals : – as a support of work and social integration
• Social goals :– for some : collective dimension of the production : social
services, environmental field …– for all: work integration at the core of the mission
• Socio - political goals – multiple interactions between WISEs and public bodies
In tension
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Multiple goals WISEs facing institutionalization
WISEs’ mission =
multiple goals ?
or a tool of active labor policy
=> Contested nature of WISEs’ mission
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Type of ownership Nb WISE
%
Single-stakeholder
64 41 %
Multi-stakeholder
9359 %
TOTAL 157 100 %
Members of board of European WISEs
Source : PERSE
b) Multiple Stakeholders
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Influence of stakeholder categories in multi-stakeholder European WISE
Stakeholder category
Users Volunteer
Staff Partici-
pant
Busi-ness
Govern-ment
NPO Other Total
Average 5% 20% 21% 7% 10% 13% 14% 11% 100%
Source : PERSE
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Influence of stakeholder categories in multi-stakeholder European WISE
Stakeholder category
Users Volunteer
Staff Partici-
pant
Busi-ness
Govern-ment
NPO Other Total
Average 5% 20% 21% 7% 10% 13% 14% 11% 100%
Source : PERSE
=> Linked to the transitional mode of work integration
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c) Multiple resources
Source : PERSE
53% 39%
8%
Market Redistribution
Donations, volunteers
Total resources : monetary and non – monetary (volunteer, tax deductions, loans of equipment)
SOCIAL
ENTERPRISE
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The origin of resources
Public sector56%
Third Sector8%
Persons21%
Business sector15%
Source : PERSE
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Resources used
Non-marketresources
Marketresources
Donations/Volunteering
ONCEe
KBa
LCOfin
LDirl
CBuk
BLUIa
BVdk
EIb
IBb
EIe
SOCOsw
EFTb
ILMOuk
SFuk
AZCb
EIp
COe CEEe
SOLIDRb
ESRb
SFuk
SHsw
SWb
Ruk
COSOi
BWb
ETAb
CSFfin
EPp
LVdk
SEirl RQf
EINf
ETTIf
GEIQf
WCOuk
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Redistribution SE Market SE Reciproc. and predom. market SE
Reciproc. and redistribut. SE
ExamplesGerman munically-
owned SEWorkers' coops,
community busin.Finnish self-help co-
operativesVoluntary Organis.
Public funding 91% 4% 16% 62%
Non monetary resources
2% 11% 13%
Various Production Various Social Services Various
Mobilisat. of volunteer
Support from NPO
Rooted in local networksMobilisat. of volunteer
Workers in integration
Workers with a weak level of employability
Various, a higher proport. of more qualified workers
A higher proportion of workers with a stronger profile
Various
"Social entrepreneur"
Launched by public bodies or large NPO
Set up by individuals or groups of workers
Sales 9% 94% 24%74%
Source: PERSE
Type of WISEs according resource mix structure
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• Importance of market sales
• Importance of the public sector
• “Re-embedding” of market relationships
• Voluntary resources embedded in civic networks
• Diversity of resource mix according to the type of social mission
Multiple resources WISEs facing institutionalization
But public schemes put WISEs « into the market or
the non-market box »
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=> Managing hybridity constitutes a challenge:Bulwark against isomorphism or threat for their
identity ?
• Institutionalisation generates strained relationships between the different goals and put WISEs into « boxes »
• Hybridity appears to be a channel to sustain the innovative capacity of WISEs linking people from different backgrounds and resources from different nature