scholarly journals SOCIAL ENTREPRENEURSHIP AS ONE OF THE BUSINESS DEVELOPMENT ACTIVITIES IN RURAL AREAS OF LATVIA

Author(s):  
Silva Jeromanova-Maura ◽  
Ilmārs Šukjurovs

Since 1 of April 2018, it is possible to register social entrepreneurship in Latvia as one of the type of business and to take advantage that is only suitable for this type of business. The study analyses how coud social entrepreneurship become one of the opportunities to address social problems, directly in rural areas, where today in Latvia is concentrated the largest population of a socially unprotected groups. This means that, while developing social enterprises and solving social problems in the regions of Latvia, at the same time, also address other issues that are actual today – lack of labour force. For entrepreneurs in rural areas, the lack of labour is the most significant, and there is no problem in Latvian regions with finding a place of residence. The development of social entrepreneurship would also be a contributory factor in the fact that the new generation would not leave the countryside, but try to build up their business using existing infrastructure, including a rural school, kindergarten – it helps to them continue to work as well. In the Latvian countryside most are farmers and crafts companies, whose business is most often expressed seasonality. At the rural areas farmers can support with works during sowing and harvesting, and some works during growing period on organic farms. There is also a growing lack of labour force in the sales companies who support farmers with new technologies, especially in aftersales – service departments. Social entrepreneurship could be one of the solutions, especially since it is very seasonal for repairs, so that it is possible to focus the work on the season by successfully management with the contingent in the countryside. There is a great opportunities to make cooperation with local authorities on this issue, the role of the social business in the development and social Affairs of the rural environment should be clarified. As a result of successful cooperation, social enterprises can become an important contribution to local authorities in addressing the societal challenges of the municipality. The study analyses how important to develop this model of cooperation, as it needs to convince local leaders before work on regional reform begins.

Author(s):  
Jolita Greblikaitė ◽  
Rolandas Rakštys ◽  
Donatello Caruso

The research problem lays upon disclosing the importance of role of social entrepreneurship in rural development of Lithuania. The paper thė tendencies of social entrepreneurship in Lithuania, to present successful examples of such business for providing recommendations how to improve sit-uation in rural areas in terms of social entrepreneurship development. Lithuanian government has made some steps towards development of social enterprises, social entrepreneurship, and social in-novation, but the a lot remains to be improved. The roots of family business go back only above 20 years and have rather poor traditions in Lithuania. It is tightly related to rural areas especially than agriculture economies are acting as family farms with potential of young social businesses.


2021 ◽  
Vol 298 (5 Part 1) ◽  
pp. 195-198
Author(s):  
Kateryna Davydkova ◽  
Valentyna Oberemchuk ◽  

The dynamic present in Ukraine forms a new interpretation of the concept of “entrepreneurship”. In the modern sense, entrepreneurship involves identifying, evaluating and using new, as yet unseen opportunities to attract the attention of consumers and maximize profits. In this sense, opportunities are a tool for finding innovation and creating new products or services. According to the Business Dictionary, entrepreneurship means the ability and desire to organize a business, taking into account the potential risks, in order to profit from it. According to Lowry, the concept of “entrepreneur” is defined as a person who seeks to achieve their goals in the economic space, to meet their desires and needs. According to the position of the consulting company McKenzie, entrepreneurs are responsible for improving the lifestyle of consumers, as well as for solving the problems faced by consumers. Most of these problems are social in nature. An enterprise that seeks tools of influence to solve such problems is called social. In our opinion, social entrepreneurship is a field of activity that can have both commercial and non-commercial basis, all efforts of which are aimed not at maximizing profits, but at solving social problems with innovative ideas. The spread of social entrepreneurship is currently fragmented and in its infancy. Entrepreneurs who choose to engage in social enterprises are often called innovators because they try to solve “outdated” social problems with “new” entrepreneurial approaches. Most researchers confirm the view that social entrepreneurship is entrepreneurship with innovation and even social entrepreneurship itself is called innovation in the social sphere. The definitions of social entrepreneurship are considered in the work, its innovative content is determined. Innovative social entrepreneurship in Ukraine is analyzed. The effectiveness of the introduction of social enterprises to solve social problems is substantiated. Examples of functioning social enterprises in Ukraine are given and social enterprises that are currently represented in Ukraine are grouped into three groups. The main stages of implementation of social entrepreneurship are summarized.


Author(s):  
Rıfat KARABAŞ

Social problems are constantly increasing in the world and the most effective field of work for solving these problems is social entrepreneurship. Although a new concept of social entrepreneurship in the world and is rapidly gaining popularity in Turkey. However, social enterprises do not have a legal basis in Turkey. Therefore innovative social problems in Turkey and movement areas of social enterprises generating sustainable solutions are provided through non-governmental organizations. In addition, social enterprises create new business models with innovative and sustainable solutions to solve social problems. They also create employment with the business models they create. In this way, they contribute to the social and economic development of the country. Although not literally have no legal status in Turkey, they form networks of social enterprises and social enterprise are also available. However, many opportunities for the support of social initiatives and social enterprises in Turkey are also ideas. However, the field of studies should be expanded and social entrepreneurship should be more widespread. In this context, the number of social enterprises and collaborations to support them should be increased in order to solve the ever-increasing social problems. For these reasons, suggestions were made for the dissemination and strengthening of social entrepreneurship.


Author(s):  
Zanda Poruka

Social entrepreneurship in Latvia has been poorly researched, a new and innovative tool for solving various social problems affecting target groups such as the unemployed, people with disabilities, visual and auditory disabilities, young mothers, youth, persons following imprisonment, seniors, persons with moving disorders. Social entrepreneurship aims at providing social services, building inclusive civil society, promoting education, supporting science, environmental protection and preservation, animal protection or cultural diversity provision. Social enterprises work in areas such as crafts and handicraft production, the production of creative industry goods, social services, health services including preventive work, communication services, educational activities provision and counselling, charity shops. . The article aims to study the social entrepreneurship to draw conclusions and provide an on-account. Novelty is to identify typical social entrepreneurship features.


Author(s):  
Bamidele A. Wale-Oshinowo ◽  
Chijioke Dike Uba ◽  
Mercy M. Adeyeye ◽  
Ayotunle Olumuyiwa Omobowale

Social enterprises are organizations created with the aim of applying entrepreneurial skills and innovations to solving social problems. They are managed by individuals who combine pragmatic and result-oriented methods of a business entrepreneur with the goals of a social reformer. Such enterprises combine resources in innovative ways to create social value in and for the society. However, social enterprises may face challenges that impact their ability to accomplish social goals. For instance, when confronted with the harsh realities of economic recession, teaming poor population, and the need to profit for social intervention, social enterprises existing in hostile economic environment in developing countries may face possibilities of shutdown. This chapter examines the concept of social entrepreneurship in a subsisting economy in Africa. Specifically, it draws from relevant primary and secondary data to explore the nature of social entrepreneurship in the Nigeria context and the potential role that social entrepreneurship can play in addressing social problems.


2021 ◽  
Vol 45 (340) ◽  
pp. 76-84
Author(s):  
Lasma Licite-Kurbe ◽  
Dana Gintere

Abstract Social enterprises have positive effect on sustainable development, and they have become an important instrument for solving social problems (especially in rural areas), as the national and local governments alone cannot solve all such problems. To foster the development of social entrepreneurship, Latvia has introduced several support instruments for social enterprises, which include tax relief, privileged procurement contracts, grants, as well as non-monetary kinds of support. However, social entrepreneurs often point out that support from the national and local governments is insufficient, while the support instruments stipulated in the Social Enterprise Law are not widely used. Therefore, the aim of the research is to analyse national and local government support instruments for social enterprises in Latvia. The research found that the most important financial instrument fostering the development of social entrepreneurship in Latvia is a grant scheme administered by the Ministry of Welfare and the JSC Development Finance Institution Altum, which is available in the range of EUR 5000 to 200000 for investment and working capital. In the period 2017-2020, 94 social entrepreneurship projects with a total budget of EUR 6 million were supported, which could be viewed as significant financial support. In contrast, immovable property tax relief, exemption from enterprise income tax (on profits) and relief from this tax for several categories of non-business expenses are considered by social entrepreneurs to be an insignificant kind of support. There is also lack of experience and practice regarding the inclusion of social criteria in public procurement in Latvia.


Author(s):  
MARGARITA NETESOVA ◽  

Purpose of research. The purpose of the study is to develop a legal approach to assessing the social impact of such a phenomenon as social entrepreneurship. In accordance with the current legislation, social entrepreneurship is carried out in order to solve certain acute social problems facing society. There is an urgent need to assess to what extent this activity solves the task, in other words, to determine the level of social impact exerted by the category of social entrepreneurs. Currently, the current regulatory legal acts do not contain criteria for such an assessment. Conclusions. The analysis of certain types of social entrepreneurship and the current procedure for recognizing small and medium-sized businesses as social enterprises allowed us to identify quantitative indicators characterizing the social impact of certain types of social entrepreneurship. In addition, quantitative and qualitative indicators are proposed that can be used to evaluate those social enterprises whose activities cannot be evaluated on the basis of so-called "obvious" quantitative indicators. It is concluded that it is necessary to submit a report on the social impact of a small or medium-sized business entity applying for inclusion in the register of social entrepreneurs.


Author(s):  
Olena PRUTSKA

The article considers and justifies the approach to the financing of organic production as a component of the concept of impact-investing. The essence, features and tools of impact-investment are considered. Impact-investing differences from social investment, socially responsible investment and social entrepreneurship are considered. It is proved that Impact Investment is the newest financial strategy for social development, provides for investments in business projects that initially focused on profit and positive changes in society or the environment It is noted that scientific consideration of impact investing has not yet been given due attention in Ukraine. The subject of research is at the intersection of financial technology, social entrepreneurship and organic agro-production. Impact investing is considered a separate case of social investing with more clearly defined boundaries. Examples of social enterprises both in agriculture and in the restaurant business and in manufacturing are known in Ukraine. Because social entrepreneurship is a business, it has all the rules of the business: niche search, market research, competition, investment, and more. Impact investments help measure the external effects of doing business. With the introduction of the investment impact criterion, it becomes possible to determine what this business impact is, how to measure, study and understand it. It is emphasized that Impact investing is only beginning to develop in Ukraine. Over the past few years, examples of such investments have emerged in Kyiv, Lviv, Odessa, Ivano-Frankivsk and other cities. Most of them have started their business through local businesses and have relatively small initial investments by global standards. The opinion is grounded that investment in the development of organic production can be considered as a form of impact investment. It is concluded that, given the great social importance of the development of organic production, as well as the positive effects that organic agricultural production can potentially have on the development of rural areas, the use of financial resources of agricultural holdings may be promising. It was proposed to provide a differentiated approach to the collection of a fixed agricultural tax (FAS), taking into account the availability of investments in organic agricultural production, which would have prompted agricultural holdings to include organic production units in their structure. Investments in the development of organic agricultural production, which are proposed to be considered as impact investments, would allow domestic agro-holdings to a certain extent “rehabilitate”, improve their image, give their debt to society, and contribute to the development of rural areas.


2020 ◽  
Vol 23 (5) ◽  
pp. 39-44
Author(s):  
Anna Popovich ◽  
Oleksandr Katsora

The article analyzes the phenomenon of social entrepreneurship and the possibility of its spread in the activities of non-profit organizations. Therefore, the purpose of the article is to outline the prospects for the development of social entrepreneurship in Ukraine and to summarize the factors that influence this process. To achieve this goal, system analysis (to outline the phenomenon of social entrepreneurship), analysis of expert assessments (for assessment of the state and trends of social entrepreneurship) and document analysis (to identify normative especially regulation of social entrepreneurship) were used.It is established that social entrepreneurship is an effective method of solving social problems, which has its own peculiarities of functioning and practice of implementation in Ukraine. The situation of social entrepreneurship in Ukraine and its normative-legal provision is considered. The article outlines the main deterrents and incentives that affect the development of social entrepreneurship and its implementation in the activities of non-profit organizations.The impact of different scenarios of social entrepreneurship development in Ukraine, including the growth of social enterprises due to the large number of social problems in Ukraine, legitimization of social entrepreneurship at the level of national legislation and economic development of the Ukrainian state, which will contribute to state support of social enterprises, taking into account the mechanisms of implementation of the social order. It was found that the main factors influencing the development of social entrepreneurship are raising the level of social consciousness of citizens, legislative definition of social enterprises and their taxation, financial support of social enterprises at the state level, grant support, increase of own incomes of non-profit organizations.


Author(s):  
Inga Bale ◽  
◽  
Anita Auzina ◽  

In Latvia, de-institutionalization is gradually taking place, which is envisaged in the European Social Development Plan at the level of public policy. In Latvia, the non-governmental sector (NGO) sector is largely dependent on external funding. In addition, competition for external financing is increasing. One of the solutions to reduce the effect of external financing is to engage in economic activity. Social entrepreneurship is becoming increasingly popular in Latvia - a business model that allows economic activities to be carried out without losing the mission, goals and social impact of NGOs. Social entrepreneurship is a way of effectively addressing the concerns of different groups at risk of social exclusion, which can have a positive long-term impact on the development of both the city and society itself. Social entrepreneurship has the potential to solve various social problems, thus facilitating municipal work and reducing municipal budget expenditures. For municipalities, social enterprises are a tool for solving social problems, which allows them to solve social problems in the municipalities by using a trans-regional approach, without taking risks on investments, failure, changes in market demand. The aim of the study is to create scenarios for the development of NGO activities, using the example of Association “Oranzais stars” (Orange Ray). Main research methods used: monographic method, strategic analysis and planning methods - PEST, SWOT, VRIO matrix, scenario method. The main result of the methods applied in the thesis is the development of a suitable and sustainable business model as the society moves towards the implementation of social entrepreneurship.


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