The Sustainability of Social Enterprises

Author(s):  
Adriana Neguț

During recent years we have witnessed a growing interest in Romania for social economy, as a result of the increasing interest of EU towards the field and the financing lines as SOP HRD 2007-2013, and as well for developing a legal framework on social economy. In Romania, many of the social economy organizations are dependent on these sources of funding, which is a major obstacle to long term sustainability of the sector. In this context, the paper aims to analyse the strategies of social enterprises established under the Priority Axis 6 of SOP HRD to ensure sustainability, on the assumption that once the funding ends they face significant risks and adopt different strategies in order to develop. The sustainability of social enterprises will be explored from three perspectives: (1) financial, seeking to identify the strategies of social enterprises to attract new funding, (2) in terms of consistency of the social enterprise with its initial objectives and principles and (3) from the point of view of the social enterprises' impact on vulnerable groups and the community. The analysis will be based on data from sociological researches on social economy entities in Romania, carried out between 2009 and 2014.

2020 ◽  
Vol 66 (1) ◽  
pp. 101-126
Author(s):  
Young Soo Park

Social-economic entities, such as village enterprises and cooperatives, have appeared in addition to social enterprises since the ‘Social Enterprise Promotion Act’ was enacted, and local governments have established ordinances to support them. However, the ordinances have not been generalised and applied as there is no specific definition of ‘Social Economy’ in the applicable parent Act - Social Enterprise Promotion Act. This research aims to revitalise the social economy in local cities and counties in Gyeonggi-do. Thus, the paper has conducted a comparative analysis of the characteristics of the local authorities’ ordinances. The study has identified complex problems of the local ordinances and suggests potential directions for further developments for the ‘Social Economy Ordinances’. The results of the exploration are as follows. Firstly, 27 out of 31 cities and counties in Gyeonggi-do have established and implemented the ‘Social Economy Ordinances’; however, most of them have not specified ‘parent laws’ of the ordinances. Secondly, although, the definitions of ‘Social Economy Ordinances’ are varied in individual local governments in Gyeonggi-do, they have been using similar keywords. Thirdly, the target scopes of the policies under the current ‘Social Economy Ordinances’ operated by local authorities are inconsistent and incoherent in terms of the system of norm and effectiveness. Thus, the ordinances are needed to be collectively reorganised and modified when the Basic Act on Social Economy are enacted. Although the scopes of support are proper in terms of the system of effectiveness, it is necessary to improve the post-management sections for the policy of supporting the social economy.


2016 ◽  
Vol 7 (4) ◽  
pp. 461-485 ◽  
Author(s):  
Mary O’Shaughnessy ◽  
Patricia O’Hara

AbstractWhat is termed the social economy in Ireland includes charities, co-operatives, voluntary associations and non-profits. However, the label is not widely used to describe them collectively so that many organisations within the wider social economy do not identify themselves with, or even fully understand, the term. The concept of social enterprise first emerged in public policy discourse in the 1990s and, since then, has been mainly viewed as a mechanism of job creation/integration and service provision in disadvantaged communities. This perspective on social enterprise has been significantly influenced by European policy. By contrast, in Irish academic discourse, the interpretation of social enterprise is more varied due to the different influences of the US and European intellectual traditions. These variations have contributed to ambiguity about the social economy as a sector, and social enterprises as distinctive forms, and this has compromised attempts to estimate the scale and potential of the sector in Ireland to date. In 2013, as part of the policy response to the unemployment crisis of the economic recession, the Irish government commissioned an examination of the job-creation potential of social enterprise. The Forfás report offered a new official definition of social enterprise, characterised by many of the features of the EMES ideal type. Furthermore, the description and examples of social enterprises included in the report confirmed the dominance of one model of social enterprise in Ireland – the Work Integration Social Enterprise or WISE. The objective of this paper is to discuss how social economy and social enterprise are understood in Ireland and to explain how WISEs have evolved as the dominant Irish social enterprise model to date. The influence of the US (Salamon and Anheier 1997; Dees 1998) and European/EMES academic traditions (Pestoff 1998; Borzaga and Defourny 2001; Nyssens 2006; Defourny and Nyssens 2010, 2012) and EU and national policy perspectives, since the early 1990s, on Irish academic and policy discourse is discussed in this paper. It is argued that the adoption by successive Irish governments of a labour market integration approach, to supporting the development of the Irish social economy, since the early 1990s, has shaped the sector and contributed to the emergence of one dominant social enterprise type, the WISE. Some of the characteristics and impacts of Irish WISE are then discussed together with the challenges they face.


2018 ◽  
Vol 11 (7) ◽  
pp. 76
Author(s):  
Hsiao-Ming Liu ◽  
Shang-Yung Yen

Taiwan's aboriginal tribes have long been affected by political forces and market economy model, and the aboriginal people living in remote mountainous areas with lack of information have met with a lot of economic and social problems and challenges such as loss of land and traditional culture, aging population and stagnation of tribal industry development. Therefore, the original self-sufficient tribes began to prone to “poverty”, and this is one of the most critical social issues for Taiwan to cope with. The purpose of this paper is to discuss the concept of "social economy" in the aboriginal tribes, to develop and restore the sharing economic cooperation model, to increase collective interests and to set up tribal social enterprises, so as to address the crucial social issues.This study will adopt the method and experience of socio-economic analysis to study the action plan of Seediq, a division of Taiwanese aboriginals, and their experience of social and economic organization and operation, and reflection on the social enterprise system. The main research is to explore the social economy in the Meixi tribe, the status quo and future development, and how to employ social innovation to promote the tribal social enterprise planning and business model.


Author(s):  
Achilleas Kontogeorgos ◽  
Fotios Chatzitheodoridis

In Europe 160 million people are members of social economy enterprises and mutual societies. Members that work at social enterprises usually are bound with an employee relationship with their organization; on the other hand participating in a social enterprise could be their only chance to find a job, especially for economies that face a long-term recession such as the Greek economy. Social enterprises and entrepreneurs invest in reciprocity which represents that positive actions will inspire reciprocal positive actions. The main objective of this study is to examine the effect of reciprocity on members’ decision either to invest in social enterprises or to work for them acquiring in both cases the necessary shares. For this reason, a survey was conducted among Greek members of social enterprises listed in the Greek Social enterprises directory, to investigate their aspects about reciprocity and if these aspects affect their decision to work in a social enterprise or support financially them. The survey process returned 142 fully completed questionnaires. The analysis identified a sub group (5 over 27 items) of the questions used to measure reciprocity that can be used to classify participants into shareholders - members (investors) and shareholders - workers in social enterprises. It is worth mentioning that sex or other demographic characteristics of the respondents do not affect this classification while there are only aspects of positive reciprocity that have either positive or negative effect on the possibility to work in social enterprises. Social entrepreneurs and the Greek state could use these findings in order to direct and manage their expansion efforts.


The purpose of this chapter is to provide an outline and overview legal framework for social enterprises, including funding and procurement policies to accelerate the growth of social enterprise ecosystem. The legal framework specifically designed for UK social enterprises is known as Community Interest Company (CIC). The internal governance rules, the permissibility of direct economic activities and the rules governing profit distribution for a CIC are discussed. The chapter explains procurement policies introduced in the United Kingdom to ensure deliver and accountability for services provided by social enterprises. Procurement is increasingly seen as the key to delivering desired outcomes for government funded programmes and it provides the link between policy and delivery. The chapter also discusses a number of funds and loans structures established by the government such as: Future Builders, The Social Enterprise Investment Fund, and Big Society Capital (BSC) to encourage the development of third sector social enterprises.


2019 ◽  
Vol 29 (1) ◽  
pp. 21-25
Author(s):  
Venelin Terziev ◽  
Natalia Bekiarova ◽  
Marin Georgiev

In the last decade the concept of development and promotion of social economy and social entrepreneurship are part of EU policy to tackle the social exclusion of persons in a vulnerable position. Also, the model of social economy is one of the key instruments for achieving social objectives within the framework of the sustainable and inclusive growth. Social benefits are measured by integration and employment of disadvantaged people, the contribution to the process of social inclusion of other vulnerable people, and the economic indicator is expressed by saved public funds for social welfare, on the one hand, and the additional funds compensating the social costs of long-term unemployment. What is important to happen is to create suitable conditions for the development of social enterprises with the widest possible range - vulnerable groups themselves and their problems are diverse and different, and the "answer" to their needs must be flexible in order to be efficient and effective; "way to solutions" is not important (the path may be different, as are diverse and vast opportunities for economic initiatives) that leads to the result itself, the result is important - better integration and sustainable tackling of social exclusion.The Economic and Social Council of the Republic of Bulgaria (ESC) believes that social enterprises in Bulgaria are still an untapped business model. Current social enterprises are mainly non-governmental organizations by applying the relevant legislation creating social enterprises whose business is focused on the realization of the social purpose and mission of the organization. Social enterprises in Bulgaria operate in various sectors, the most serious part are in: the delivery of social services; providing jobs for people with disabilities; mediation in finding employment of unemployed persons; provision of health services; аctivities in the field of education and others.In realizing these activities the leading is not the end product but the achieved social effect on individuals themselves expressed in obtaining the necessary support to integrate into society. In this sense, there are three basic models of social enterprises: The most common model is the one that creates jobs and develops the workforce. By business jobs are created primarily for people with disabilities. Most often the social enterprise is the employer of people with disabilities in order to achieve the integration of persons with disabilities in the labor market and create conditions for a better life. Another popular model of a social enterprise is the one in which the enterprise produces goods and seeks markets, also engaging with their distribution. Most often social enterprises involve persons with disabilities in the form of occupational therapy involved in the production of certain goods. Existing social enterprises in Bulgaria within this model are engaged in the manufacture of certain products by persons who are unemployed or socially excluded. The aim is to enable them to work and improve their social inclusion. The third existing model in Bulgaria is related to the provision of social services generally through payment of external customers, while social enterprise provides social services to its members. Payment is under contract with the state or a municipality. Within this model, services are provided to different users paid directly to social enterprise for direct service.


2017 ◽  
Vol 5 (10) ◽  
pp. 175-183
Author(s):  
Irina Atanasova

Social entrepreneurship has to be perceived in the context of social economy. It is the production, supply and / or organization of consumption of goods with a socially significant effect. The objectives of the paper are: to define the essence of the social entrepreneurship, its relation to the other business models and the social enterprise as an organizational subject of social entrepreneursh. The institutional framework and the legal foundations of these processes in the EU and Bulgaria have been outlined. Some specific problems - institutional, legal, economic are concerned and directions are given for solving them.


2019 ◽  
Vol 17 (Suppl.1) ◽  
pp. 488-495
Author(s):  
Hristina Blagoycheva

The purpose of this article is to investigate the possibilities of integrating the activity of social enterprises into the regional sustainable development goals. Traditionally, from an economic point of view, the social enterprises are not a dominant form of business management that contributes to the regional development. But in the article, they are seen as major players within the social economy that can facilitate a sustainable local and regional development. The benefits of the social enterprises are that they manage to combine economic, environmental and social goals in "one basket", thus helping to meet diverse local and regional needs. Based on studied academic discussions and the European Union's experience in building different approaches to developing social entrepreneurship, attempts are being made to address the challenges facing social enterprises at the regional level. Various opportunities are also considered to overcome these challenges.


2019 ◽  
Vol 11 (1) ◽  
pp. 29-42
Author(s):  
Marcela Chreneková

Abstract The exclusion of individuals from the labour market directly affects the economic situation of their households. The main objective of the social economy is to address this situation. With the development of the social economy, efforts to assess its effects are intensified. The ambition of the paper is to express the extent of social economy in terms of rurality of regions of the Slovak Republic, identify its actors, sectors, where its entities operate and to illustrate both direct and indirect effects of the social economy. Industrial production is the most attractive sector for Slovak social enterprises. A small proportion of social enterprises operate in information, communication services and education. The largest number of sheltered workshops and workplaces operates in wholesale and retail trade and services related to sales. Geographical distribution of the social economy entities in Slovak districts (LAU 1) showed dependence of social economy intensity on rurality. Impact of a social enterprise is strongest in the local territory. However, single social enterprise can bring wide regional, national and even supranational effects.


Author(s):  
Marie J. Bouchard ◽  
Paulo Cruz Filho ◽  
Tassadit Zerdani

This article explores how the social enterprise concept is used in Québec. Focusing on the historical, institutional, and current conceptual understanding of the social economy in Québec, it explores the related definitions, terminology, and typologies currently in use. The term “social enterprise” is near absent in Québec, mainly due to the highly recognized notion of social economy. However, not all Québec enterprises that pursue social goals fit into the social economy institutional definition. This article proposes a conceptual framework for understanding the modalities of Québec’s field of social economy and other social purpose enterprises. It suggests that “social enterprises” in Québec are those that participate in the social purposes of the social economy without sharing the core and institutionalized characteristics of social economy enterprises.Cet article explore l’usage du terme « entreprise sociale » au Québec. Se basant sur des aspects historiques, institutionnels et conceptuels, l’article explore les définitions et les typologies qui ont cours aujourd’hui. L’expression « entreprise sociale » est rarement mentionnée, dû à la forte reconnaissance de l’économie sociale. Toutefois, il existe des entreprises au Québec qui, tout en poursuivant des objectifs sociaux, ne correspondent pas à la définition institutionnelle de l’économie sociale. La principale contribution de cet article est de proposer un cadre conceptuel pour comprendre le champ de l’économie sociale et des autres entreprises à finalité sociale. Il suggère que les « entreprises sociales » sont celles qui participent aux objectifs sociaux de l’économie sociale mais qui n’en ont pas les caractéristiques institutionnelles.


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