Co-funded by the Europe for Citizens Programme
of Europe Union
European Network for Social Integration Entrepreneurship:
social inclusion and development of rural regions for a better
European future – ENSIE – 588997-CITIZ-1-2017-1-1SK-CITIZ-NT
Manual of Best Practice regarding Social Integration Enterprises
Social enterprises combine societal goals with an entrepreneurial spirit. These organisations
focus on achieving wider social, environmental or community objectives. The European
Commission aims to create a favourable financial, administrative and legal environment for
these enterprises so that they can operate on an equal footing with other types of enterprises in
the same sector. The Social Business Initiative, launched in 2011 identified actions to make a
real difference and improve the situation on the ground for social enterprises.
Social Economy and Social Entrepreneurship in the projekt partners
By adopting Act 112/2018 on Social Economy and Social Entrepreneurship, the Slovak
Republic creates a favorable environment for the development of the social economy and
introduced the order of concepts and regulations into the social business segment. The law
removes obstacles that prevented the development of the social economy in the past and,
through the system of support, helps to increase the social entrepreneurship in Slovakia. The
support system consists of direct and indirect effective support. The direct form consists of
investment, compensation and compensatory allowance. Investment aid shall cover investments
including operating costs. Compensation aid is used to cover the lower productivity of workers
from their disadvantages for 24 months. The compensatory allowance is linked to the loss of
the employee who has already been trained, and therefore this loss affects the performance of
the social enterprise. At the same time, the newly-enacted law contains rules to prevent the
status of a social enterprise by preventing the abuse of available support.
In the Czech Republic, ” social business” has a long tradition, mainly in the countryside.
Already in the territory of the Habsburg Empire, the Czech cultural and economic identity was
based on volunteer activities of civil society.
In the Czech Republic, the first information and touching of the topic emerged from the end of
the nineties on the level of the cooperative unions, the foundation for a broad discussion was
the emergence of the National Thematic Network for Social Economy in 2005 under the
EQUAL program. After two years of joint work and the search for consensus, we created the
first Czech definitions and principles. These were repaired in 2011 and the main features of the
social enterprise were grouped under three main principles – social, economic and
environmental, which were merged with a local dimension. In a simplified way, it can be said
that the Czech concept is broad and the emphasis is on business, that is, to make social
enterprises profit. Among social enterprises, we count not only intergration social enterprises
that employ disadvantaged people, but also those businesses that are ecologically oriented,
support local development, or trade fair trade. Social businesses also include nonprofit
businesses that earn and earn profits from their core business.
All major statistic records have registered an increase in the “third sector” labor. According to
ISTAT in Italy there are 61thousand and 776 “social enterprises”, 16.918 of which are social
cooperatives and 11.940 non profit organizations market oriented. To this number we need to
add 1.874 former social enterprises. It is interesting to see how, between 2011 and 2015, in the
very midst of the economic crisis in Italy, the number of social companies have increased over
30% and so have their working units, that have raised from a number of 320.513 to 383.828 .
It is though true that during the same period approximately 62.000 organizations have shoutdown (Il Fatto Quotidiano 15 december 2017).
In 2017 the Legislative Decree 112/17 marked an important reform in the social
entrepreneurship sector, widening the panorama of the Social Enterprise and determining
benefits and direct ex lege. The analysis of the entrepreneurial potential in this sector has
increased over the years by 30%, considering a basin of about 93,000 social enterprises. The
current legislation has allowed the expansion of social entrepreneurship status also to cultural
enterprises and innovative start-ups in the social sphere. This aspect is very relevant considering
the strong social inclination of culture and its importance at the economic level in Italy,
constituting 10 points of GDP. On a notional level, the Italian legislation inserts the Social
Enterprise as an Entity of the Third Sector, being a „qualification” that can be acquired by any
private entity that has the formal requisites. The social enterprises are therefore required to carry
out activities according to methods and purposes predetermined by the legislator. Important is
the approach, in the legislation, of multi-stakeholder governance among social enterprises, also
required by European policies.
Social entrepreneurship has started to attract the attention of the policy makers in Serbia after
2008, when the economic situation significantly deteriorated and when both political decisionmakers and professional public were forced to start actively looking for innovative solutions to
economic problems, such as high unemployment. As the result, Serbia has taken certain
measures in order to encourage the development of social entrepreneurship, first of all by
improving the legal framework, through programs for small and medium-sized enterprises and
training for Regional Development agencies. At the same time, there was mutual recognition
within the sector itself and networking of social entrepreneurs and civil society organizations,
with a goal to contribute to development of social entrepreneurship in Serbia through
cooperation, exchange of knowledge, experiences and information.
Social Integration Entrepreneurship in Croatia is mostly relied on NGOs. With the
Independence of Republic of Croatia the process of civil society development started mostly
with foreign funds like USAID etc. In the beginning of 2000 few of NGOs started to test social
entrepreneurship. Most of NGOs used those funds to create business models who had social
impact, employed marginalized groups in order to start integration of people who before didn’t
have chance to be on the market or to act as full members of the society. With the start of
negotiation to enter the EU, NGOs started to use pre-acession funds which enabled further SIE
development. Some of the organizations are still existing now and are leading examples of SIE
in the country (Act grupa, Humana Nova, Hedona, Deša etc..) In last 15 years except NGOs
there are organizations called WISEs (SMEs that work on the integration of disadvantaged.
Although the first social economic programmes appeared about 25 years ago, social economy,
social enterpreneurship are almost unkown concepts in Hungary. Although in the last 8-10 years
some forms of social enterpreneurships have got emphasized attention in Hungary. The number
of social cooperatives established by the local municipalities has been multiplied. Social
cooperatives give a new, special form of social economy, whose main objective- counter to
business organizations- firstly is not reaching profit but to fulfill other social and communal
goals (educational, social, cultural, employment, etc.) Other types of members of social
economy are associations, foundations and not-for profit Ltd.s.
Social enterpreneurship want to give an answer to social challenges, such as lack of paid jobs,
social exclusion, poverty, shrinking work-places, depopulation of rural regions, big migration
to cities.
The main characteristics of social enterprises are self-preservation on long term and
organization of economic activity on the open labour market. Social economy can be viewed
as the third economic sector – they operate on local level between private and public sector.
In Latvia 2017 and 2018 two important turning points have been taken to develop the social
business environment. For almost 10 years there have been different initiatives to establish a
legal framework for social entrepreneurship. Finally, in April 2018 the Social Entrepreneurship
Law, aiming to create a favorable environment for social entrepreneurship, came into force.
Meanwhile, a pilot project was launched by the Ministry of Welfare, involving Financial
institution ALTUM as a Cooperation Partner to administer the grant scheme – a new program
to support social entrepreneurship, which will make 12 million euros available until 2022.
These new regulations have defined social business context in Latvia.
The goal of setting up a social enterprise is to address societal challenges, including to employ
target groups – disadvantaged unemployed or disabled people, or mentally disabled, i.e., social
integration of work integration.
The state provides certain support to each social enterprise, which, in turn, will not be allowed
to distribute profits to its owners, but reinvested in attaining the objectives of the company, that
is, the creation of public good. The law also provides a list of support instruments as the right
of the state and local authorities to grant certain relief and support, namely, the right to donate
movable property, to grant real estate tax credits, and to provide social enterprises with their
property to be used free of charge. Social enterprises are able to engage volunteers to perform
tasks other than managerial duties, accounting, or the basic functions of the company.
Before the Law mostly social enterprises operated under the legal form of non-governmental/
non-profit and limited liability companies. Starting from 1. April, 2018, existing social
enterprises are able to continue work under existing legal status, but NGO’s cannot be
recognized as social enterprises under social enterprise law nether claim for financial support
under pilot project nor defined by Law on the Social enterprise.
In order for the company to acquire the status of a social enterprise, it must comply with the
five criteria laid down by law. The status is granted and its use is monitored by the Ministry of
Welfare.
According to the data of the Ministry of Welfare (13.09.2018.), 28 non-governmental
organizations and 47 limited liability companies are officially recognized as social enterprises.
Registered organizations are acting different fields: social integration, health promotion, sports
and culture, inclusive civil society, social and medical services, education etc.
More information: http://www.socialenterprisebsr.net/2018/08/educational-module-forsocial-entrepreneurs/
Social action in the azores and in particular in madalena do pico is done through the central
government and some non-government organizations support by the state.
The social inclusion in Madalena is made through two importante non-govermental
institucions: Santa Casa da Misericórdia e Cáritas.
In Portugal there is no specific legal form for social enterprise. Even so, a social enterprise
produces goods or services to resolv a need or solve a social problem; its vocation exceeds the
distribution of benefits by shareholders; has activity with positive and measurable social impact
and its management is transparent and participatory.
The government has made a great advance in this matter by providing various tools for those
who want to be a social entrepreneur.
A great example is SEA – Social Entrepreneurs Agency a multisectoral cooperative created in
2007 by a group of social entrepreneurs. Its corporate purpose is the development and
implementation of social entrepreneurship projects that contribute to social, economic, cultural
and environmental sustainability, in favor of local and integrated development. SEA opted for
the legal form of cooperative because it was intended to create a social enterprise. Given that
this legal figure does not exist in Portugal, cooperatives were the type of organization that was
closest to this model. Since 2008, SEA has been implemented in different territories to develop
projects that promote the economic integration of local communities and individuals. This
integration involves the creation of income-generating activities, for individual training and
development of entrepreneurial skills for the labor market, based on the Personal Brand
methodology, or for the generation of new social businesses that contribute to the creation of
new jobs. In its intervention, SEA seeks to create innovative social solutions based on people-centered and place-based strategies with a high social impact that respond to the current needs of an ever-changing labor market.
In the Azores there are no social enterprises. The biggest competition for the appearance of
these companies will be the Catholic non-governmental organizations that have always been
dedicated to the social problems of the small localities.
In Romania the term of social economy is relatively new. After 2015 the Romanian legislation
has assured the legislative framework. There are two types of social enterprises: the simple
European Network for Social Integration Entrepreneurship:
social inclusion and development of rural regions for a better
European future – ENSIE – 588997-CITIZ-1-2017-1-1SK-CITIZ-NT
social enterprise and the enterprise which employs disabled people. A Simple social enterprise
has social aims or of public utility. It has to expend 99% of its incomes on social aims. In case
of liquidation all remained materials have to be conveyed to social enterprises. It keeps the fair
attitude toward all employees when it comes to salaries, it does not exceed to 1-8 proportion in
that case. Enterprises which employ disabled people: 30% of employees must have some kind
of disability, they have to fight against exclusion. It is their obligation to offer the next facilities
to the employees: professional guidance, trainings, adapting the most adequate environment for
its employees.
The number of social enterprises in Slovenia is constantly increasing. At the end of 201719 it
was 254 registered social enterprises, but 7 were in the process of cessation (liquidation,
bankruptcy, prohibition of operation) or in transformation into a job center. Dominating legal
form were institutes (35.4%), following by co-operatives (28.3%), associations (25.6%) and a
smaller share of limited liability companies (10.2%). The majority of social enterprises had
their registered office in Maribor (20.5%), Ljubljana (16.5%) and Murska Sobota (5.5%). In 13
municipalities, there are 3-6 social enterprises, in 91 others only 1. According to the selected
main activity based on the SKD register (Standard Classification of Activities) are dominating
social enterprises operating on
one of the following areas: Other activities (28.7%), Education (15%), Professional, scientific
and technical activities (13%) and Health and social work (9.4%).
Conclusions:
– unclear use of basic concepts: social economies – SE, social entrepreneurship and social
enterprise – co.p., non – governmental organization – NGOs and NGOs, other terms in this field,
– relatively strong SE sector in Slovenia (tradition of community action and a strong
tradition of the NGO sector),
– sporadic (non-strategic) development of the SE sector,
– incorrect mapping of the second (private-economic) sector and third (socioeconomic)
sector; it is radically different ways of social organizations that need to be addressed and
measured in different ways,
– groups of social economy entities are: social enterprises, cooperatives, NGOs
organizations, disability enterprises and employment centres, reciprocal companies
Legislative overview
Slovakia
Law 112/2018, adopted by the National Council of the Slovak Republic on 13 March, amends
and updates 17 relevant laws in order to create a favorable environment for the development of
social enterpreneurship in Slovakia.
Substantial changes and amendments to relevant laws occurred in the area of the Commercial
Code Act No. 519/1991 Coll. and the recognition of a registered social enterprise which carries
out an economic activity in order to achieve a measurable positive social impact compared to
the previous version in which the business was carried out on its own and on its own
responsibility for the sole purpose of achieving only profit.
Amendment to Act no. 138/1991 on the Property of Municipalities, Act no. 278/1993 on State
Property Administration and Act no. 446/2001 Coll. on the Assets of Self-governing Regions,
allows the transfer of immovable property of a municipality, a Self-governing regions and a
state property to sell or rent at a lower price than the expert’s opinion has been issued to a
registered social enterprise as forms of investment aid.
Act no. 323/2015 on financial instruments funded by the European Structural and Investment
Funds allows, after the amendments, to financially support registered social enterprises also in
the form of operating costs.
Law 5/2004 on employment services creates scope for compensatory aid for disadvantaged or
vulnerable people in the social economy segment.
Amendment to Act no. 152/1994 Z.z. The Social Fund has allowed support for demand for
registered social businesses by creating and introducing service vouchers to come into force
and use 1.1.2019.
Amendment to Act no. 595/2003 Z.z. on Income Tax and Act No. No 222/2004 on Value Added
Tax governs value added tax relief on goods and services for an eligible customer from 20% to
10%. At the same time, it provides for income tax allowances for registered social enterprises.
Relevant amendments to the Act enter into force on 1.1.2019.
Czech Republic
Legislative – Social Business Act in the Czech Republic
The Act on Social Entrepreneurship has been in our hands for almost ten years. Currently, the
Act in the state of the approved material intention and the preparation of the paragraph,which
was not discussed even in the interministerial comment procedure. The prepared law responds
to the need to create a single legal environment for social business, where there is currently a
considerable inconsistency in the definition of social entrepreneurs. The law on social
entrepreneurship will not create a new legal form, it merely sets out the conditions that business
or legal a person wishing to benefit from the status of a social enterprise and benefits from this
status. For business the status of social enterprise, restrictions on profit management will apply
– more than 50% of profits must be used for the further development of socially beneficial
activities, and they will have the duty to monitor economic, social and environmental benefits.
Socially beneficial activities the enterprise supports part of its profits, in particular, activities of
environmental protection, culture, education, assistance to socially disadvantaged persons or
development of local communities.
The social enterprise will also be obliged:
– have rules for the participation of employees and members on the direction of the company,
– have at least 30% revenue from own revenues,
– not disturb local communities beyond the level necessary to condut business,
– employ at least 1 person and at the same time recruit at least one full-time employee for
a continuous period of at least 12 months before applying for a status of a social enterprise,
– publish your founding law,
– publish their final owners and have a transparent ownership structure,
– to prove the absence of overdue debts to the tax administration or social security,and
health insurance and contribution to the state employment policy,
– prove that he is not in the process of liguidation or bankruptcy,
– its statutory bodies are impeccable,
– has at least one acconting period as an entrepreuner, and at the same time fulfills all the
conditions for achieving the status of social enterprise
Intergration Social Enterprise
Entitlement to status The integration Social Enterprise will have an entity that meets the above
definition of a social enterprise that employs and socially integrates disadvantaged persons into
the bird market when:
– the proportion of disadvantaged workers is at least 30% of the average annual staff budget,
– perform demonstrable activities aimed at further employing these people on the labor
market or social integration, and provide psychosocial support to their disadvantaged
employees.
At present, the number of social enterprises in the Czech Republic is approximately 200
enterprises in the Czech Republic is approximately 200 enterprises – due to the absence of
valid legislation, there is no register of these companies.
Italy
Social entrepreneurship has started to attract the attention of the policy makers and institutions
in Italy since 2006, when the crisis of the welfare systems significantly exacerbated and when,
with the starting of federalism and subsidiarity, political decision-makers were forced to start
actively looking for innovative solutions to economic and social problems, such as high
unemployment, inequality, poverty, gender inequality. As a result, Italy has taken certain
measures in order to encourage the development of social entrepreneurship, first of all by
improving the legal framework (Decree n.155/2006 and Third Sector Code) and through
programmes for small and medium-sized enterprises (including cooperatives and consortia).
At the same time, there has been networking of social entrepreneurs and civil society
organizations, with a goal to contribute to the development of social entrepreneurship in Italy
through cooperation, exchange of knowledge, experiences and information. Currently there are
61,776 social enterprises in Italy.
In Italy, in the past two years, there has been new awareness both toward the so-called “third
sector” (that involving non profit organizations, cooperatives, associations) and social
economy, together with Corporate Social Responsibility. Starting from the n. 117 Legislative
Decree of july 2017 (that has just recently, august 2018, underwent a radical reform) and with
the establishment of a Third Sector National Council, the renewal of this sector is continuing to
take place. This latter is a national consulting organism consisting of 33 effective members and
just as many substitute members, who mean to be expression of all associations and the most
representatives associate networks in the country, but also of regional and local authorities, of
other public institution and qualified experts in each field.
Focusing on the analysis of data concerning the qualification of “social enterprise”, the law refers mainly to two subjects:
– social cooperatives, recognized as cooperatives by right;
– all private organizations that have assumed the status of a social enterprise according to current
legislation.
The law also allows Ecclesiastical Entities to be able to take on the status of Social Enterprise.
From the point of view of the statutory activities, the legislation defined the prohibition on the
allocation of part of the profits of the Social Enterprise, to increase the share capital for free or
to distribute dividends among the shareholders.
From a financial point of view, the norm determines the benefits of deductibility for companies,
equal to the allocation of a share of not more than 3% of profits for social enterprises or the
Fondazione Italia Sociale or a deduction of 30% on those investing in the company social.
The definition of a cultural and creative enterprise with L. 205/2017 is part of this regulatory
framework. This legislation not only determines the status of Cultural and Creative Enterprise
but also determines important fiscal aspects, such as the introduction of the tax credit and which
constitutes the national economic driving force.
Serbia
Serbia still lacks adequate legal legislation for the functioning of social enterprises, and there
is insufficient level of knowledge about the potentials of this sector, which is not recognized as
a formal sector in Serbia. However, the beginnings of social entrepreneurship are already
reflected in several laws – primarily in the Law on Vocational Rehabilitation and Employment
of Persons with Disabilities, which, for the first time, introduces the term “social enterprise” in
our legislation. Despite the unfavorable legal and socio-economic framework, social
entrepreneurship in Serbia currently exists in the form of individual initiatives that address
unemployment and social exclusion problems in individual cases. Having in mind the socioeconomic conditions in the country, opportunities for new forms of support in all areas of the
social protection system in Serbia are opened. The labor market is still underdeveloped and too
weak to take on the role of a key factor in social integration.
There are seven legal forms of businesses that have been recognized in Serbia as those that fully
or approximately correspond to the social enterprise concept: associations of citizens;
cooperatives; enterprises for employment and professional training of persons with disabilities;
spin-off enterprises (most frequently in the form of a company with limited liability and a jointstock company); foundations; business incubators and development agencies. Most of the stated
legal forms correspond to the category of social enterprises by their basic status but not in a
formal way. It is expected that new draft law enters the parliamentary procedure by the end of
the year 2018. Most of the “social enterprises” we have today are trying to point out week spots
of this law as very limiting for them.
Croatia
Republic of Croatia as a young country had a tremendous history in legislative that changed
from socialism to democracy. All the laws are in accordance with the European acquis, but some
are not in accordance with current economy development. For example, the Law on
cooperatives for 2013. is in acquis with EU legislative but is not following the trends in
cooperative development. While coops are the leaders in social economy development for most
EU countries like Italy, Spain, Denmark, Germany, or Belgium, in Croatia the law is actually
slowing down the sector. Part of the problem is probably in the government strategy on how to
position Croatia on the EU map, or lack of understanding from decision makers. EU funds can
partly help the sector to develop but there is always a question what after the fund, or the
project? As there is lack of legislative support, other types of support are not developing too.
For example, institutional support for SE or financial support. In this environment is hard to
measure social impact of SE but also to talk about the sector because is almost invisible.
Till the end of the year we are expecting new Law on cooperatives that will be more adjusted
to SE. As we have Strategy for SE development form 2015. the Law on SE is still to be
expected.
Current SE are operating as NGOs, coops, SMEs or public institutions. All of them are non for
profit under the accounting law, Law for non for profit bookkeeping 2015. There is the Law for
associations form 2015. which opened the space to legally work on the market. SE that are
SMEs are operating under the Law for companies, which can be also adjusted.
Hungary
Several different legal forms of social entepreneurships exist in Hungary, but one thing is
common in all of them. It is necessary for all social enterpises that besides economic activity
social aspect also has to be emphasized.
In case of social cooperatives the establishment and operation is regulated by the 2006. X. law,
which expresses the positive attitude of the government toward social enterprises.
To establish a cooperative seven members are required, of which one has to be the local
government (municipality) or any charity organizations. All the members have to pay property
contribution, determined by the Assembly Members. According to one of the main principals
of social cooperatives, one member has one vote in decision making independent of property
contribution. All the members of the cooperative have to participate in economic activity
through personal assistance. It is very important that a given part of the income from economic
acitivity has to be spent on communal objectives fixed in the founding document, such as
educational, cultural, etc., goals.
In case of cooperatives a special form of employment exists. If someone from the members is
unemployed and registered in the National Employment Office, it is allowed to be employed in
the cooperative as „sui generis”. This Latin word means members’ work in the organization,
for which special taxation rules are applied in Hungary. The members, who are employed as
sui generis can get their wages in products of the cooperative without paying any kind of taxes
after this kind of income. Also the employer gets several different kind of taxation reduction
after this form of employment.
At any other aspects social cooperatives have to act on the competitive market as any other
enterprises, all the taxation rules regarding them are the same.
Latvia
The Social business Law in Latvia came into force April 2018, aiming to create a
favorable environment for social entrepreneurship.
The goal of setting up a social enterprise, in accordance with the Law, is to address
social or societal challenges, which is:
– a market operator, who produces goods and services;
– the profits made are reinvested in achieving the social goal;
– employed employees;
– employ or plan to employ target groups – disadvantaged unemployed or disabled people,
or mentally disabled (social integration of work integration)
The law also defines the activities in which social enterprises are not allowed to engage,
such as the production of and trade in arms and ammunition, alcoholic beverages, tobacco, as
well as gambling and betting, and financial and insurance services.
The Law also provides a list of support instruments as the right of the state and local
authorities to grant certain relief and support, namely, the right to donate movable property, to
grant real estate tax credits, and to provide social enterprises with their property to be used free
of charge. Social enterprises will be able to engage volunteers to perform tasks other than
managerial duties, accounting, or the basic functions of the company.
Social entrepreneurship Law clearly states the definition of social enterprise: A social
enterprise is a limited liability company, that has received the status of social enterprise
pursuant to this Law, and that performs operations with a positive social impact (for example,
provision of social services, creation of inclusive civic society, promotion of education, support
of science, environmental protection and conservation, animal protection, or safeguarding of
cultural diversity).
The status of social enterprise can be assigned to a limited liability company, the majority stake
of which does not belong to one or more public entities, if the target group employment is stated
as its purpose in its articles of incorporation.
Companies that have acquired the status of social enterprise will be able to exclude a number
of expenses from the corporate income tax base, such as the following:
– The costs of rehabilitation and social inclusion measures for employees
– The costs of integrating people into the labor market
– The acquisition of assets that serve the objectives set out in the articles of incorporation
– The donations to public benefit organizations
The other part of support instruments is formulated as the right of the state and the local
authorities to grant certain relief and support for social enterprises. This includes:
– the right to donate movable property
– to grant real estate tax credits
– to provide social enterprises with their property to be used free of charge.
Social enterprises will be able to engage volunteers to perform tasks other than managerial
duties, accounting, or the basic functions of the company.
More information: http://www.socialenterprisebsr.net/2018/08/educational-module-forsocial-entrepreneurs/
Portugal
Social impact action in the Azores and in particular in Madalena do Pico is mostly done through
the central government and some non-governmental organizations supported by the state.The
social inclusion in Madalena is made through two important non-governmental institutions:
Santa Casa da Misericórdia and Cáritas. In Portugal there is no specific legal form for social
enterprise. Even so, a social enterprise is defined as one that produces goods or services to
resolve a need or solve a social problem; its vocation exceeds the distribution of benefits by
shareholders; has activity with positive and measurable social impact and its management is
transparent and participatory. The government has made a great advance in this matter by
providing various tools for those who want to be a social entrepreneur.A great example at
Portugal’s national level, is SEA – Social Entrepreneurs Agency a multisectoral cooperative
created in 2007 by a group of social entrepreneurs. Its corporate purpose is the development
and implementation of social entrepreneurship projects that contribute to social, economic,
cultural and environmental sustainability, in favor of local and integrated development. SEA
opted for the legal form of cooperative, once, as mentioned above, there is no specific legal
figure for social enterprise in Portugal, and cooperatives still is the closest to this model.
Romania
The legal framework of social economy
In Romania, Law 219/2015 provides the legal framework for social economies.
The following entities can start a social business:
– Cooperatives
– Credit cooperatives
– Foundations
– Self-help funds for employees
– Self-help fund for retirees
– Agricultural businesses
– Other legal entities, which have the objectives and principles of the social economy in the
founding regulations
Subject of social economy
– strengthening economic and social cohesion;
– employment;
– the development of social services.
The objectives are achieved through the following activities:
– The provision and / or execution of goods, services contributing to the well-being of the
community or its members;
– Supporting, in particular, activities that create or can provide jobs for the employment of the
vulnerable group;
– Developing training programs tailored for the vulnerable group;
– Developing social services to increase the employability of people on the labor market of the
vulnerable group.
Financing Option
To strengthen the social economy, Romania allocated € 20 million in support under the
Solidar programme.
In order to receive support in the social enterprise, at least 10 people should be involved from
the target group.
Eligible activities under the Solidar programme:
Counseling, mentoring, training in the professional or social field, developing skills of people
working within the business.
Counseling on business development.
Increasing production capacity, exploring opportunities for marketing products, works and
services.
Facilitate the visibility of social enterprises.
Ensure workplace conditions according to the needs and abilities of persons.
Taking over the experience of other Romanian or European Union communities.
Developing cooperation networks, learning about and disseminating good practices.
Slovenia
The Social Entrepreneurship Act (ZSocP) (Official Gazette of the Republic of Slovenia, No.
20/2011) was adopted in March 2011 and started to apply in January 2012. From 1 January
2015 onwards the Ministry of Economic Development and Technology was responsible for this
field.
During the period of application of the law, there was a need to supplement or amend those
provisions of the law that in practice discouraged legal entities from registering the status of a
social enterprise or made it difficult to maintain it. For this reason, the Act Amending ZSocPthe Social Entrepreneurship Act (ZSocP-A) (Official Gazette of the Republic of Slovenia, No. 20/11, 90/14 – ZDU-1I and 13 / 18) was adopted on 15 February 2018 and entered into force on 15 March 2018.
The key changes to the new law are:
1. The abolition of type A and B of social enterprises, which have separated social enterprises
according to whether they obtained status from the title of implementation of statutory activities
(type A) and to social enterprises that obtained employment status of the proportion of people
with disabilities ( type B) .
2. Facilitating the implementation of social entrepreneurship in all areas of economic and noneconomic activities that go beyond the integration of vulnerable target groups and the provision
of social services of general interest and gives more opportunities for generating social
innovations.
3. Elimination of restrictions on the registration of the status of a social enterprise for legal
entities with the status of company for disabled persons and an employment centre, as they are
also part of the social economy.
4. The amendment of the law approaches European practices that address the wider context of
the social economy, which includes social entrepreneurship, by making certain concepts clearly
defined. This means extending the Council for Social Entrepreneurship to the Council for social
economy and The development strategy of social entrepreneurship into the Social Economy
Development Strategy.
5. The full (100%) limit of profit distribution to emphasize the principle of non-profitability,
and the fact that the status of a social enterprise is truly chosen by non-profit legal entities whose
main activity is the achievement of social effects and not the payment of profits.
6. Introduction of the measurement of social effects that social enterprises will have to publish
and report on annually to the competent ministry.
EXAMPLES OF GOOD PRACTICE
PARTNER COUNTRY: SLOVAKIA
| Organization Data (social entrepreneurship organization) | |
| Legal name /Business name | Wasco, družstvo |
| Country: | Slovakia |
| Legal form: | družstvo |
| Registration number: | n/a |
| Registration date: | 2014 |
| Registration authority | Ivan Mako |
| Legal Address | |
| Street name and house number: | Strojárenská 10 |
| Region: | Banskobystrický |
| Postal code: | 97446 |
| Internet homepage: | www.wasco.sk |
| Main Phone: | 0905139573 |
| Main Contact Person | |
| Contact title: | Ms. |
| Contact position in organisation: | Coordinator |
| Contact last name | Vozárová |
| Contact first name | Andrea |
| Contact phone | +421915996881 |
| Contact e-mail: | mako@wasco.sk |
| Organization description | |
| Object of activity | Washing and ironing |
| Objectives and mission of the organization |
Employing disadvantaged persons and persons with disabilities, long term unemployed, single mothers and members of minority groups. |
| Number of employees: | 25 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
22 |
| An example of good practice | |
| Description of the activity max. 1500 characters |
The social enterpreneurship Valaská focuses on two main bussines aspects which ensures financial sustainability, ironing and laundry services. The services are provided on the open labour market. The quality of each order for custumer is ensured and protected by a quality card. The quality card serves for both, ensure the quality of the provided services and tracking back employess who were responsible for procesing an order. The integration process of a potential employee who come from disadvantaged environment or is a person with disability/ies is procesed through various stages. A person with low previous working experience is adjusted to perform simplier work tasks with lower intensity of working time. After the period of 2-3 months, the person who accomplished first phase is entrusted by more complex working requirements also the time intensity spent in work increases. The boost for ensuring of social enterpreneurship is substitute fullflilment of the services orders as a result that the socila enterpreneurship is registred as protected labour environmnent where people with disabilites work. Part of the social enterpreneurship is community service provision such as terrain social work and community center which is financed from the European structural funds as national projects. As a result, the project Valaska was able to integrate on the open labour market numerous number of people. |
| Target group | marginalized groups – Roma and non Roma, single mothers, persons above 50, people with foster care experience |
| Sources of financing the organization’s activities |
Multiple source of financing – grants from the international donors, donation from the state administration through donation scheme, community service provision /terrain social work, community center/ |
| Results of success, positive experience |
Employing people with different stages of disabilities and disadvantages within the social enterpreneurship and open market. Decreasing coexistence tension between majority and minority groups. Launching social economy within the region. Decreasing the regional differences. Emporing Roma community. |
| Problems, limitations, development limits |
Lack of infrastructure for developing and unlocking potential of social economy, lack of public procurement with social enterpreneurship aspect, lack of human resources to enter the middle and higher management based on the lack of finance and motivation of people to work with disadvantaged people. |
| Suggestions, recommendations/ | Applying the social aspect within the public procurement process, establishing social enterpreneurship infrastructure and applying good practices from other countries within the Slovak concept, creating favorable environment and conditions to enhance and develop underepresented share of the social economy with financial instruments in order to provide more life opportunities for disadvantaged and people with disparities. |
PARTNER COUNTRY: CZECH REPUBLIC
PARTNER COUNTRY: ITALY
| Organization Data (social entrepreneurship organization) |
|
| Legal name /Business name | Clematis Social Cooperative Municipality of Martinsicuro |
| Country: | Italy |
| Legal form: | Social Cooperative |
| Registration number: | 01798430672 |
| Registration date: | 15/04/2011 |
| Registration authority | Italian Chamber of Commerce |
| Legal Address | |
| Street name and house number: | Via del Semaforo 1, Martinsicuro (TE) |
| Region: | Abruzzo |
| Postal code: | 64014 |
| Internet homepage: | http://www.coopclematis.it |
| Main Phone: | +39 347 553 9135 |
| Main Contact Person | |
| Contact title: | Ms. |
| Contact position in organisation: | President |
| Contact last name | Ciapanna |
| Contact first name | Morena |
| Contact phone | +39 347 553 9135 |
| Contact e-mail: | cooperativa.clematis@gmail.com |
| Organization description | |
| Object of activity | |
| Objectives and mission of the organization | Objectives- To offer high quality services to children, adults, the elderly, people with psychological or social disadvantage. Mission- To present a series of proposals to families, sportsmen and tourists, schools, organised groups, associations and bodies of the social sphere, some of them are valid for the whole year, such as the Psycho Pedagogical Center, others refer to specific time periods. |
| Number of employees: | 18 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
We have 20 employees, out of which 14 are permanently hired and 6 are temporary. There are 8 disadvantage people. There are, also, one scholarship and 4 apprentices. |
| An example of good practice | |
| Description of the activity max. 1500 characters |
CLEMATIS is a social cooperative, whose members and collaborators are professionals in the social-health, agronomic and environmental fields. The extraordinary naturalistic wealth of the “La Pineta Park” allow us to offer high quality services oriented to children, adults, the elderly, people with psychological or social disadvantage. “La Pineta Park”, headquarters of the Cooperative, is located in the south-west of the city of Martinsicuro. The Park is a place dedicated to the promotion of psycho-physical and relational well-being and it is proposed as an answer to important needs of the community, linked to natural spaces, conviviality and healthy environmental stimulus. The proposed programs are structured according to the needs of the target group: educational and cultural activities, ecological paths, social farm/pet-therapy, allround events and sporting events. |
| The promotion of well-being is the ‘fil rouge’ that connects these initiatives; our great ally is Nature. The contact with the natural elements affects the mood and human behavior determining therapeutic effects against stress, anxiety, conflict and depression. We are pleased to present a series of proposals to families, sportsmen and tourists, schools, organised groups, social associations and social bodies, some of them are valid for the whole year, such as the Psycho Pedagogical Center, others refer to specific time periods. |
|
| Target group | Direct target group as a user of our social services are children, adults, the elderly, people with psychological or social disadvantage |
| Sources of financing the organization’s activities |
We are a non-profit organisation. The sources of financing are: agreements with varous municipalities for socio-educational and environmental services; crowdfunding projects; other paid activities; donors. |
| Results of success, positive experience | As our success we offer stories of users of our services and their families. We have stories that grew in the hearts of the users, we agree that they are also the hardest and most valuable ones. |
| Problems, limitations, development limits | Our funding opportunities are limited but growing. |
| Organization Data (Social Entrepreneurship Organization) | |
| Legal name / Business name | Municipality of Santa Severina |
| Country: | Italy |
| Legal Form: | Local Public Authority |
| Registration Number: | |
| Registration Date: | |
| Registration Authority | |
| Legal Address | |
| Street Name and House Number: | Piazza Campo, 21 |
| Region: | Calabria |
| Postal Code: | 88832 |
| Internet Homepage: | www.comunesantaseverina.gov.it |
| Main Phone: | (+39) 0962-51062 |
| Main Contact Person | |
| Contact Title: | Mr. |
| Contact Position in Organisation: | Project Manager |
| Contact Last Name | Dell‘Aquila |
| Contact First Name | Luigi |
| Contact Phone | (+39) 338-6064306 |
| Contact E-mail: | luigixdellaquila1@gmail.com |
| Organization Description | |
| Object of Activity | The Municipality of Santa Severina provides for the management of public services that have as their object the production of goods and activities aimed at achieving social goals and promoting economic and civil development and the choice of the form of management is subject to a prior assessment of the various forms envisaged by the law and by the present statute |
| Objectives and Mission of the Organization |
The objectives and mission of the Municipality of Santa Severina consist mainly in developing and implementing programs, projects and initiatives aimed at ensuring local economic, social and territorial development in all its forms and manifestations, with particular attention to disadvantaged people to the labor market, vulnerable and marginalized and to economic migrants and asylum seekers |
| Number of employees: | 8 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
0 |
| An Example of Good Practice | |
| Description of the Activity max. 1500 Characters |
A good practice carried out by the Municipality of Santa Severirna is the Free Academy of European and Oriental Languages which represents a place of high formation and meeting between young students and Teachers from all over the world. The activity of Free Academy of European and Oriental Languages it includes both the organization and the actual realization of the courses and claims to contribute to the rediscovery of the common cultural roots of the peoples overlooking the Mediterranean area. The activities carried out in the last three years by the Free Academy of European and Oriental Languages, in addition to linguistic training, involved the creation of ad hoc cultural actions and events (such as workshops, meetings, conferences, exchanges) organized from time to time. time and linked to specific topics of interest. In addition, this institution – established by the Municipality of Santa Severina – works in close collaboration with the other local authorities and institutions (especially the Region and Province) and is affiliated with the University Linguistic Center of the University of Calabria in Cosenza. Parallel to the on-site activity, has signed a series of memoranda of understanding: 1) preparation of educational and teaching staff for exchanges, visits, study seminars; 2) |
European Network for Social Integration Entrepreneurship:
social inclusion and development of rural regions for a better
European future – ENSIE – 588997-CITIZ-1-2017-1-1SK-CITIZ-NT
| participation of teachers in scientific meetings; 3) deepening and widening of the knowledge of the calabrian literature and that of the Magna Grecia area; 4) international relations |
|
| Target group | Young Students and teachers coming mainly from developing countries, artists, economic migrants and asylum seekers |
| Sources of financing the organization’s activities |
Own resources and resources coming from participation, through the presentation of specific and thematic project proposals, to the European, national and regulatory financing programs |
| Results of success, positive experience |
Increasing the culture of the recipients of the activities, in the acquisition of skills and abilities (also non-formal), increasing dialogue and understanding between different peoples and increasing cultural integration with the local population |
| Problems, limitations, development limits |
The limits to the development and increase of the assets of A are mainly derived from the scarcity of available financial resources |
| Suggestions, recommendations | None |
PARTNER COUNTRY: SERBIA
| Organization Data (social entrepreneurship organization) | |
| Legal name /Business name | Organization: Horse club Arandjelovac Social enterprise: Varoš |
| Country: | Serbia |
| Legal form: | Civil society organization |
| Registration number: | 17767763 |
| Registration date: | 02/13/2017 |
| Registration authority | Serbian Business Registers Agency |
| Legal Address | |
| Street name and house number: | Alekse Šantića 28, Aranđelovac |
| Region: | Šumadija District |
| Postal code: | 34300 |
| Internet homepage: | http://www.konjickiklubarandjelovac.rs/sr-yu |
| Main Phone: | +38160 7110577 |
| Main Contact Person | |
| Contact title: | Mrs. |
| Contact position in organisation: | Manager for fundraising and communications |
| Contact last name | Janković |
| Contact first name | Gabriela |
| Contact phone | +38160 48 49 454 |
| Contact e-mail: | kkarandjelovac@gmail.com |
| Organization description | |
| Object of activity | |
| Objectives and mission of the organization |
The goal-Young by their nature is realized by an open and successful Arandjelovac with their creativity |
| Mission-The Power of the Young and the Power of Nature for an open and successful Arandjelovac |
|
| Number of employees: | 18 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
We have 18 employees, out of which 5 are permanently hired, and 13 are temporary and occasional. From temporary and occasional engaged 8 are disabled persons, of which one is a woman and a Roma woman, 4 are women from the village, one of whom has fled, one victim of violence and one divorced. And from the constantly engaged we have one refugee person, three women from the village, one of whom is a member of the national minority |
| An example of good practice | |
| Description of the activity max. 1500 characters |
Our organization is one of the 6 organizations in Serbia which realizes the social service of hyporehabilitation. This service is used by 30 OSI from Arandjelovac, and occasionally i persons from neighboring municipalities. Service is not charged end users, but organization of the asset provides project and in partnership with the Red Cross Arandjelovac and UG OSI “Passengers”. In addition to hypotherapy, we also provide a socially accredited Youth Club at Risk Service, which aims to help young people in this sensitive period, where the demands of the environment and family are often in conflict. We also have a social enterprise Varos, which produces and sells organic berries, as well as the provision of horseback services such as recreational riding and the business offer of timbuilding and leadership programs. |
| Target group | youth |
| Sources of financing the organization’s activities |
Mi smo neprofitno udruženje građana, prihodi koje ostvarujemo profitnim aktivnostima pokrivaju oko 12% naših troškova. |
| Results of success, positive experience |
As our original success, we offer stories of users of our therapies and their families. |
| But not only a successful story, everyone does it. We have stories that grew in the hearts of the users. We agree that they are both the hardest and the most valuable. Sanelina’s story Sanela is a 12-year-old girl with autism, a child with the most serious medical records in our city. She has psychosis and autism, wears diapers and can not do anything on her own. Sanela is completely asocial and refuses to integrate with others. During every hypotherapy, she just sits in the corner, and her mother confirmed that Sanela did not have any of her “episodes” here. Nothing’s happening. Just sit down. Sanela’s mother claims that only after sitting around the horse, she actually sleeps all night. One day Sanela jumped onto the horse, with our help. Then she touched the horse’s hair and started laughing. The mother was overflowing with happiness when Sanela laughed. “My daughter laughed for the first time in her 12 years of age. For the first time my daughter laughs,” she cried. We did not do this, the therapeutic horse did it. Stories of other users: -Bogdan (3), autism, his first word was “Lisa” – the name of our therapeutic horse, which he uttered while licking her. -Nata (15), autism, begins to socialize with children after hypotherapy. -Nikola (11), hardly falling behind in psycho-physical development, learned what is left and what’s right. – Aca (9), falling into psycho-physical development, during our therapy, realized where his nose was. -Bane (15), hard to fall into psycho physical development, is not afraid of leaving home anymore. -Vuk (12), a paralysis paralysis, seriously lagging behind in psycho-physical development, improved motor movement freed from spasms and, consequently, pain. -Sara (10), celebrity paralysis, seriously lagging behind in psycho-physical development, improved motor movements, began to socialize with children, free from cramps. -Teodora (12), microcephalus paralysis, seriously lagging behind in psycho-physical development, coming out of the house, free from pain. |
|
| Problems, limitations, development limits |
All our profitable activities depend on weather conditions, and our funding opportunities are limited. |
European Network for Social Integration Entrepreneurship:
social inclusion and development of rural regions for a better
European future – ENSIE – 588997-CITIZ-1-2017-1-1SK-CITIZ-NT
| Suggestions, recommendations/ |
| Organization Data(social entrepreneurship organization) | |
| Legal name /Business name | Organization: Citizens Association Leka Social enterprise: The Kind Transporter |
| Country: | Serbia |
| Legal form: | Civil society organization |
| Registration number: | 28103131 |
| Registration date: | 8 February 2013 |
| Registration authority | Serbian Business Registers Agency |
| Legal Address | |
| Street name and house number: | Trg Republike 52/ L14, Pirot |
| Region: | Pirot District |
| Postal code: | 18300 |
| Internet homepage: | http://ugleka.pirot.org |
| Main Phone: | +381607486230 |
| Main Contact Person | |
| Contact title: | Mr. |
| Contact position in organisation: | Chairman of the Board |
| Contact last name | Zivkovic |
| Contact first name | Aleksa |
| Contact phone | +381607486230 |
| Contact e-mail: | udruzenjeleka@gmail.com |
| Organization description | |
| Object of activity | Helping elderly citizens, environment protection |
| Objectives and mission of the organization |
|
| Number of employees: | 0 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
|
| An example of good practice | |
| Description of the activity max. 1500 characters |
| The Kind Transporter- free services for members (from November 2012 until January 2017 services were completly free of charge for all residents older than 70 years of age) older than 70 years of age: groceries and medications delivery, paying utility bills. All services are provided by bicycle during all year. |
|
| Target group | Eldelrly people, youth |
| Sources of financing the organization’s activities |
City of Pirot, donation from entities, membership fees, providing commercial services to entities and individuals |
| Results of success, positive experience |
Many awards, TV, newspapers and internet coverage as well as two times on billboards all over country |
| Problems, limitations, development limits |
Defining problem and offering solution for it (going from zero to one) is NOT a problem. Problem is growing from one man army in the field to youth that wants to get their first job& volunteering experience and expand other projects |
PARTNER COUNTRY: CROATIA
| Organization Data (social entrepreneurship organization) | |
| Legal name /Business name | Humana Nova Istra |
| Country: | Croatia |
| Legal form: | cooperative |
| Registration number: | 130068331 |
| Registration date: | 2017. |
| Registration authority | Trgovački sud u Pazinu/Court in Pazin |
| Legal Address | |
| Street name and house number: | Rudarska 3 |
| Region: | Istria |
| Postal code: | 52220 |
| Internet homepage: | / |
| Main Phone: | / |
| Main Contact Person | |
| Contact title: | Cooperative manager |
| Contact position in organisation: | manager |
| Contact last name | Galović |
| Contact first name | Marijan |
| Contact phone | / |
| Contact e-mail: | marijan@humananova.hr |
| Organization description | |
| Object of activity | Collection and reuse of textile |
| Objectives and mission of the organization |
Objectives: 1. waste reduction (textile) 2. circualar economy 3. employment of marginalized groups (older women/men, people with disabilities, etc) |
| Number of employees: | 10 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
9 |
| An example of good practice | |
| Description of the activity max. 1500 characters |
Social coop Humana Nova Istra (in Labin) is working in this fields: 1. textile collection trough specialized containers and from partners (Red cross, utility company 1. maj, NGOs, physical persons) |
| 2. in the sorting space of 120 m2 employees are sorting textile on used and not used, and preparing it for reuse and sales trougout second hand shop 3. textile that is not for sales is divided in cotton which can be sold as industrial cleaning wipes, and the rest is ready to recycle 4.educational activities and campains for local comunity in order to raise awarenss about negative impact of textile industry 5. projects (EU funds, national funds etc..) |
| Target group | People with disabilities, disadvantaged people, older women and men, people in gerenral (to educate about the sense on environment protection and /or negative impact of textile industy) |
| Sources of financing the organization’s activities |
Zavod za vještačenje i profesionalnu rehabilitaciju (Expertise and Professional Rehabilitation Institute), cooperative memeber loans, self financing (activities on the market) |
| Results of success, positive experience |
Cooperative is operating less than a year and in this short period it managed to test working process of collecting textile, sorting it and than sell it trough second hand shop and to foreign countires. Also, cooperative employs 10 people from whom 9 are from disadvantaged groups or with disabilities. At the moment cooperative is in process of openning second store, and a third one in a month. This sales channel is managin to have 50% of revenue and can help to reach the break even point even before its planned. In this period coop managed to have strong partnerships with local utility company, Red cross organizations and lots of physical entities who are keen to collect and bring old and used textile to the sorting place. |
| Problems, limitations, development limits |
In the begining there were problems related to testing of the working processes due to constant change of employees. Also for social coops there is lack of initial capital to start the production, but they managed to overcome it with small loans from their owners. Develompent limits are mostly related to small size of the sorting place so they needed to take an extra place nearby which in the future will couse them some extra costs. |
| Suggestions, recommendations/ | None |
| Organization Data (social entrepreneurship organization) | |
| Legal name /Business name | Punkt d.o.o. |
| Country: | Croatia |
| Legal form: | ltd |
| Registration number: | 04587561 |
| Registration date: | 2016. |
| Registration authority | Trgovački sud u Pazinu/Court in Pazin |
| Legal Address | |
| Street name and house number: | Marsovo polje 12, Pula |
| Region: | Istria |
| Postal code: | 52100 |
| Internet homepage: | / |
| Main Phone: | 052 670 217 |
| Main Contact Person | |
| Contact title: | CEO |
| Contact position in organisation: | manager |
| Contact last name | Kasumović-Maružin |
| Contact first name | Danijela |
| Contact phone | / |
| Contact e-mail: | danijela.kmaruzin@gmail.com |
| Organization description | |
| Object of activity | Restaurant and catering, social services |
| Objectives and mission of the organization |
Objectives: 1. social integration of people with disabilities 2. job cretion in sector of catering and agriculture 3. employment of marginalized groups (older women/men, people with disabilities, etc) |
| Number of employees: | 8 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
4 |
| An example of good practice | |
| Description of the activity max. 1500 characters |
Punkt ltd is situated in Pula, close to the city centre and is specialised in catering and agriculture. Catering, rastaurant and take out is core business of Punkt, in which is 5 people employed. The CEO Danijela is educational rehabilitator in local school for children with disabilities where she realised that children after going aout of the school program are faced with uneployment and social exclusion. Because of that she wanted to create a place where those types of people can practice and work, earn normal salary to have decent life. Besides catering Punkt is developing services in agriculture such as planting and taking care of plants. |
| Target group | People with disabilities, disadvantaged people, older wimen and men, people in genenral (to educate about the sense on taking care about deprived people) |
| Sources of financing the organization’s activities |
Zavod za vještačenje i profesionalnu rehabilitaciju (Expertise and Professional Rehabilitation Institute), bank credit, loans from the owner, selffinancing (activities on the market) |
| Results of success, positive experience |
In order to create this type of business, the owner spent more than 8 months to find propper place, equipment for the restourant and initial capital. From the very beginning, opening was in January 2017., the support from local community was more than expected. Most of the problems were connected to employees, because of the target group who have invalidity, and even now there is a struggle to find adequate employees. No matter, each day for Punkt is a prove that people with disabilities can be employed can work and can have life like other people. Because of our mission we created large list of client who are taking rather our services then from others, because they know that is our responsability to suppoer this types of business and integration. |
| Problems, limitations, development limits |
In the begining there was problems related to test the working process due to constant change of employees. But now we are prepared to changes. |
| Suggestions, recommendations/ | None |
PROJECT PARTNER: HUNGARY
| Organization Data (social entrepreneurship organization) | |
| Legal name /Business name | Rozvágy-Text Social Cooperative |
| Country: | Hungary |
| Legal form: | social cooperative |
| Registration number: | 05-02-000968 |
| Registration date: | 16/09/2013 |
| Registration authority | Registry Court of Miskolc |
| Legal Address | |
| Street name and house number: | Vöröshadsereg street 31. |
| Region: | Nagyrozvágy, Borsod-Abaúj-Zemplén county |
| Postal code: | H-3965 |
| Internet homepage: | ww.w. rozvagytext.hu |
| Main Phone: | +36204484099 |
| Main Contact Person | |
| Contact title: | |
| Contact position in organisation: | managing director |
| Contact last name | Orsolya |
| Contact first name | Hogya |
| Contact phone | +36204484099 |
| Contact e-mail: | hogya.orsolya@gmail.com |
| Organization description | |
| Object of activity | sewing, embroidery |
| Objectives and mission of the organization |
improving working, living, educational level of members through activities which are viable on the competitive market |
| Number of employees: | 7 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
7 |
| An example of good practice | |
| Description of the activity max. 1500 characters |
Based on an earlier public employment programme the Municipality of Nagyrozvágy has decided to establish a social cooperative. Sawing activity has had a high tradition in Nagyrozvágy, for almost 50 years a sawing factory operated in the village until it was closed. Experienced employees were given to start sawing again. Local government is one of the seven founding members. Thanks to a national support an embroidery machine was also purchased. The main products of the sawing factory are different types of flags (national, EU, historical, etc) also with embroided coat-of-arms. The mission of the cooperative is to give a chance for those, who are permanenty unemployed, their posy is to give a fisfing rod intead of fish for those who are socially disadvantaged. In the glory days the cooperative had 10 employees, at the moment 7 people work for the organization. Long-term objective of the cooperative is self-preservation and profitability. |
| Target group | Disadvantaged people, mainly those who are permanently unemployed. Those people are targeted, who would like to find a job in Nagyrozvágy, and are under-educated. |
| Sources of financing the organization‘s activities |
Two big sources of financing exist in the organization. One of them is the income from economic activites of the cooperative, while the other significant group of sources is national and EU supports. Rozvágy-Text has had two big EU projects, financing mainly employment and equipment procurement. |
| Results of success, positive experience |
The most important success of the organization is that it can survive on the competitive market, producing marketable goods. Although the employees are disadvantaged people, the products have a good quality and big added value. It is very important that on local level it can give jobs to many people, and help them to improve their skills to find jobs on the first labour market. The cooperative is an active member of the local communitiy, finances several local events. |
| Problems, limitations, development limits |
The biggest problem is the under-education of employees, therefore significant amount of money has to be spend on trainings and education. It is very hard to find motivated people. Only some dedicated people participate in activities. |
| Suggestions, recommendations/ | It is very important that a social cooperative has to act on the market as any other members, produce competitive goods. On the other hand though it has to be socially sensitive, therefore it must spend money on social issues of the members, such as skills development, education, etc. |
| Organization Data (social entrepreneurship organization) | |
| Legal name /Business name | Youth for the Bodrogköz Association |
| Country: | Hungary |
| Legal form: | association |
| Registration number: | 64449 |
| Registration date: | October 3, 2007 |
| Registration authority | Court of Miskolc |
| Legal Address | |
| Street name and house number: | Rákóczi Ferenc street 60. |
| Region: | Nagyrozvágy |
| Postal code: | H-3965 |
| Internet homepage: | |
| Main Phone: | +36309397675 |
| Main Contact Person | |
| Contact title: | |
| Contact position in organisation: | chairman |
| Contact last name | Sáriczki |
| Contact first name | Krisztián |
| Contact phone | +36204484099 |
| Contact e-mail: | sariczki.krisztian@gmail.com |
| Organization description | |
| Object of activity | communitiy development |
| Objectives and mission of the organization |
increase of youth activity, education for democracy, support of disadvantaged youth, education and research, organization of youth programmes, development of the Bodrogköz region |
| Number of employees: | 1 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
1 |
| An example of good practice | |
| Description of the activity max. 1500 characters |
The Youth for the Bodrogköz Association was established in 2007, with the participation of 10 young people living in Nagyrozvágy. Actually 10 friends have decided to make a legal form to achieve their objectives, namely to organize programs for the youth, to make them active members of the local community. They started with small steps, first participated in local initiations, such as park cleaning, garbage collection, etc. Later thanks to different national and EU proposals, several projects has benn carried out by the Association. They have started a Youth Club, where youth can spend their free time meaningful, and several services are also provided there: helping in preparing CVs, IT point, etc. They have a project called „Click Grandma“, where they teach IT knowledge to elder people. They have organized several communal events for the whole reagon, sponsored singers, bands, craftsmanship, etc. Thanks to an EU project, a park has been formed in Nagyrozvágy, where Hungary is illustrated with its counties. The“mini Hungary“ helps children to learn about Hungary’s geography using it as a tool of non-formal education. Through its activitiy the Association broadcasts towards its target group the importance of democracy and the active involvment in citizens‘ issues (such as participation in elections, etc. |
| Target group | youth under the age of 29 living in the Bodrogköz region |
| Sources of financing the organization’s activities |
the main sources of financing are income from participating in researches the other part of financial sources comes from donation, national funds, and the 1 % of personal income tax oppered by tax-paying employees |
| Results of success, positive experience |
In the last 10 years the Association has been carried out several successful projects. It operates a Youth Club in Nagyrozvágy, established a youth park also in Nagyrozvágy. Unfortunately nowadays young people are tend to be very inactive in communal life, but thanks to the Association in Nagyrozvágy there is a significant group of youth working for the community. The Association is very active in participating proposals, which mean the main financial support of operation. The key factor of success is the management team, whose members are experts in several different field of organization management, doing their work for free. |
| Problems, limitations, development limits |
Without national and EU support it is very hard to survive. It is very hard to find motivated people, who work for low amount of money or even without any payment in the civil sector. |
| Suggestions, recommendations/ | To strengthen civil, not-for profit sector is very important in each country. By their activities they provide niche replacement services. Volunteering is a strong tool, it is the best factor of motivation. |
PROJEKT PARTNER: LATVIA
| Organization Data (social entrepreneurship organization) | |
| Legal name /Business name | SIA BlindArt |
| Country: | Latvia |
| Legal form: | Business entity (SIA) |
| Registration number: | 40203079251 |
| Registration date: | 05.07.2017 |
| Registration authority | |
| Legal Address | |
| Street name and house number: | Mazā Muzeja street 1-4 |
| Region: | Riga, Latvia |
| Postal code: | LV-1050 |
| Internet homepage: | www.blindart.lv |
| Main Phone: | +371 67613490 |
| Main Contact Person | |
| Contact title: | Mr. |
| Contact position in organisation: | Founder, Creative director |
| Contact last name | Hermanis |
| Contact first name | Andrs |
| Contact phone | +371 25608844 |
| Contact e-mail: | art@blindart.lv |
| Organization description | |
| Object of activity | Social Enterprise |
| Objectives and mission of the organization |
Through creative processes we stimulate integration of blind and visually impaired people in society. Inspire them to achieve higher goals and increase self confidence. We create products with additional value and develop social enterprise environment in Latvia. |
| Number of employees: | 7 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
4 |
| An example of good practice |
European Network for Social Integration Entrepreneurship:
social inclusion and development of rural regions for a better
European future – ENSIE – 588997-CITIZ-1-2017-1-1SK-CITIZ-NT
| Description of the activity max. 1500 characters |
BurBur is a project conceived by the social enterprise “BlindArt” and made possible by various stakeholders including the Association of the Sightless, the Latvian Academy of Art, the European Social Fund, and development finance institution ALTUM. It is the first cooperation of its kind in Latvia designed to support social entrepreneurship and provide new sources of employment for people whose road to participation in the labour market is often fraught with obstacles. In this project four sightless and visually impaired women are hired to make five different kinds of design products inspired by an age-old Japanese shibori technique. By adapting this method to the contemporary aesthetic standards and technological opportunities, the sightless and visually impaired people create unique fabrics in various 3D textures striking the perfect balance between handicraft technologies and innovation. The collection includes poufs, cushioncases, cushions, rectangular and triangular bags, as well as shopping bags. The production of every material requires tremendous care and effort making each product truly unique and distinctive. |
| Target group | Blind and visually-impaired people |
| Sources of financing the organization’s activities |
European Social Fund, and development finance institution ALTUM |
| Results of success, positive experience |
We developed in market 7 new and unique products and provide with a job opporunities 4 women with sight issues. |
| Problems, limitations, development limits |
Too much bureaucracy in funding process. As a social enterprise we do not have any valuable benefits comparing to usual business entities. |
| Suggestions, recommendations/ |
| Organization Data (social entrepreneurship organization) | |
| Legal name /Business name | Sabiedrība ar ierobežotu atbildību „Visi var“ / Limited liability company „Visi var“ |
| Country: | Latvia |
| Legal form: | Limited liability company, social enterprise |
| Registration number: | 40203121205 |
| Registration date: | 30.01.2018 |
| Registration authority | Register of the Enterprises of the Republic of Latvia/ SE status registered in Ministry of Welfare of Latvia |
| Legal Address |
| Street name and house number: | Siguldas novads, Sigulda, Čiatūras iela 13 |
| Region: | Sigulda |
| Postal code: | LV-2150 |
| Internet homepage: | https://www.facebook.com/socialaisuznemumsVisiVar/ |
| Main Phone: | +37126371923 |
| Main Contact Person | |
| Contact title: | Chairman of the Board |
| Contact position in organisation: | Chairman of the Board |
| Contact last name | Anita |
| Contact first name | Zakatistova |
| Contact phone | +37129347223 |
| Contact e-mail: | almelija@gmail.com |
| Organization description | |
| Object of activity | Charity shop |
| Objectives and mission of the organization |
The goal of the company is to promote and support the employment, welfare and education of social risk groups by conducting business, organizing educational and work-enhancing measures, and supporting the implementation of charitable projects. The company’s profits are diverted to achieve this goal. |
| Number of employees: | 11 employees (5 employees at the charity store and 6 employees per company contract). |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
9 people in social risk groups (pre-retirement age, single mothers, mothers with disabled children, autistic people, people with functional and mental disorders. |
| An example of good practice | |
| Description of the activity max. 1500 characters |
The social enterprise “Visi var” acts as a charity store whose profits are geared towards various charity projects. Already, the company has exported a sewing plant employing 6 people belonging to one of the risk groups (person with functional disorders, mental disorders, retired person, autistic person, lonely mothers, etc.). Initially, people have the opportunity to learn sewing skills and build an understanding of how to work with potential customers. After work training with a person, an enterprise contract is concluded, which stipulates the reimbursement of paid work. The sewing workshop has made it possible for the person from the risk group to return to the labor market, to determine his own hours of work, taking into account his state of health and socializing with other members of the community. Our employees are breaking the stereotypes of society and proving that people from different risk groups are able to perform their work in a high quality and fast way, and they are reliable and highly motivated as employees. The next steps in the social enterprise “Visi Var” are to create both a candle and ceramic plant and a wood processing plant that will be able to |
| work even more people who are not able to enter the standardized labor market. The products manufactured by the factories are sold in our charity store, on the Internet, as well as by private orders. |
|
| Target group | Persons with disabilities, people from different risk groups and other people who have difficulty in working full time. |
| Sources of financing the organization’s activities |
Shop profits, donations, projects. |
| Results of success, positive experience |
The social enterprise has already set up the first sewing unit, employing 6 people from the social risk group. They are included in the labor market (they are no longer beneficiaries but taxpayers). Employees have the opportunity to socialize and gain new skills in marketing, customer service and ordering. With the help of various social activities and published information on the Internet, a broader and deeper understanding of social entrepreneurship and its necessity is being made in society. |
| Problems, limitations, development limits |
1. Favorable state policy and tax rate; 2. There is no public support for these types of social enterprises; 3. Difficulty in realization of production; 4. Difficulties in marketing issues. |
| Suggestions, recommendations/ |
PARTNER COUNTRY: PORTUGAL
| Organization Data (social entrepreneurship organization) | |
| Legal name /Business name | CÂMARA MUNICIPAL DA MADALENA DO PICO |
| Country: | Portugal |
| Legal form: | Municipality of the Portuguese Republic |
| Registration number: | 512070946 |
| Registration date: | Non-Applicable |
| Registration authority | Non-Applicable |
| Legal Address | |
| Street name and house number: | Largo Cardeal Costa Nunes, Madalena do Pico, Pico Island, Azores |
| Region: | Azores |
| Postal code: | 9950-324 |
| Internet homepage: | www.cm-madalena.pt |
| Main Phone: | +351 96 82547 95 |
| Main Contact Person | |
| Contact title: | Mr. |
| Contact position in organisation: | European Affairs and European Project Management External Advisor |
| Contact last name | Barbosa |
| Contact first name | Steven |
| Contact phone | +351292 628 700 |
| Contact e-mail: | Steven.barbosa3waec@outlook.es |
| Organization description | |
| Object of activity | Town Hall of Municipality, providing direct support to local citizens |
| Objectives and mission of the organization |
The Municipality of Madalena do Pico, has several powers and responsibilities, developing activities in general terms in several areas worth mentioning. The following are under direct dependency of the Mayor or the Councilman in charge of the delegated competence: Judicial, Cultural, Tourism, Town Library, Social Service and Education; Youth, Sports and Entrepreneurship; Civil Protection and Veterinary services. |
| Number of employees: | With direct and indirect employed people is around 200 employees. |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
Around 10 |
| An example of good practice | |
| Description of the activity max. 1500 characters |
The Local Agency for Employment (ALPE) was aimed at facilitating and promoting the professional integration of unemployed young people and adults of the municipality of Santa Maria da Feira. It’s a platform to integrate local synergies in employment, education-training and creation of the business itself. (http://www.direitosedesafios.com/mnu12849.php) ESLIDER-PORTUGAL aims to actively contribute to the recognition of the Third Sector, promoting its transparency, professionalism and modernization, working with public and private institutions to develop its legal regulations It was born in 2011 with the exclusive partnership of EUCLID NETWORK – the European network of leaders of Civil Society. (http://esliderportugal.org/pt/inicio/) |
| Target group | Young people with less opportunities; Elderly population; Disabled and General unemployed people. |
| Sources of financing the organization’s activities |
Public Funding (National and Regional Governments, European Union Structural funds, namely European Social Fund) |
| Results of success, positive experience |
Direct support to vulnerable population, a response so far non existent; Professional paths to young people without professional or education outcomes; Better employment success to less advantageous population. |
| Problems, limitations, development limits |
The solutions presented makes people depend on public powers to provide assistance, without providing solutions for autonomy and self-reliance; Even though youngsters with less opportunities find a |
European Network for Social Integration Entrepreneurship:
social inclusion and development of rural regions for a better
European future – ENSIE – 588997-CITIZ-1-2017-1-1SK-CITIZ-NT
| professional path, most of them end up in low social classes, not fulfilling their aspirations and maintaining very low salaries. This last situation should be rethought at EU level when considering the outcomes of the use by national and regional authorities of EU funds such as European Social Fund. |
|
| Suggestions, recommendations/ | Create mechanisms for self-autonomy and reliance, proofing tools for less opportunity population to be able to entrepreneur ways out of disadvantageous situations. |
PARTNER COUNTRY: ROMANIA
| Organization Data (social entrepreneurship organization) | |
| Legal name /Business name | Association of Physically Disabled from Harghita County |
| Country: | Romania |
| Legal form: | NGO |
| Registration number: | 5/2/2/1990 |
| Registration date: | 02.02.1990 |
| Registration authority | Court of Miercurea Ciuc |
| Legal Address | |
| Street name and house number: | Márton Áron, nr.50 |
| Region: | Hargita County |
| Postal code: | 53211 |
| Internet homepage: | http://handicaphr.ro/english/index.htm |
| Main Phone: | 0040266316204 |
| Main Contact Person | |
| Contact title: | Mr. |
| Contact position in organisation: | President |
| Contact last name | Csaba |
| Contact first name | Józsa |
| Contact phone | 0040734158299 |
| Contact e-mail: | handicap@sec.ro |
| Organization description | |
| Object of activity | Its main goals are: defending the rights of those with disabilities and raising consideration and respect for the existing rules on physical disabilities. |
| Objectives and mission of the organization |
At the beginning of theirs activity, the Association has provided social services, information, council and orientation regarding various field of interest. They have established lobby and advocacy campaigns in the domains of obtaining and respecting those with disabilities. They consider it very important to promote the right to work, so they have initiated activities that offered ways to an easier social integration. |
| Number of employees: | 50 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
50 |
| An example of good practice |
| Description of the activity max. 1500 characters |
First good peactice: In December 1997, with the help of Caritas Alba Iulia, Miercurea Ciuc subsidiary, we have initiated occupational workshops for the physically and mentally disabled people. These individuals perform an activity listed as occupational therapy. These workshops have a huge role not only in the association’s life, but in the physically and mentally disabled people’s life, because the main goal is not an economic benefit but a moral background: these people can feel useful and they belong somewhere. Candle manufacturing workshop The workshop activity is carried out by 4 people. They manufacture simple and decorative candles, and the final products are presented in national and international expos. Weaving workshop In the workshop the finite products are made on the hand operated weaving machine. Two persons deal with this, one of them prepares the rough material and the other manufactures the products. Tailoring workshop In this workshop two persons produce table cloths and different household textiles. The products they have manufactured have been awarded on several occasions, expos and fairs. Archiving workshop The disabled persons offer archiving services for firms and public institutions. This activity includes numbering, perforating and filing the documents. This activity is carried out by groups of 3-4 disabled persons. Regional office of counseling The Association has created counseling offices and occupational workshops in Gheorgheni and Odorheiul Secuiesc. The beneficiaries of these offices are the disabled people from these towns and surroundings. The workshops have been renewed and equipped adequately for functioning. Back shop Within the Association continuously functions a back shop for repairing medical equipments and devices designed for disabled people. Second good practice: The association runs/owns a transportation service which is avaible for every disabled people who needs to get from a location to the other. The tickets are from the Harghita County Social and Child Protection Directorate from whom the association will be paid back the ticket prices. This includes a niche gap providing great help for people with disabilities since many of them can not handle the transport of people with disabilities and the price of these tickets will be retunerd to the association. |
| Target group | physically and mentally disabled people |
| Sources of financing the organization’s activities |
Projekts Donations Own reveneu They don’t have national government support!! |
| Results of success, positive experience |
Association receive evaluation and council from our partners, which contains a personalized testing of each individual as well as carefully guiding the person in question towards the right workshop or the perfect calling, taking into account the handicap the individual is suffering from. Így sok fogyatékkal élő számára munkát tudunk biztosítani, akiket máshol nem alkalmaznának. |
| Problems, limitations, development limits |
Unfortunately the 448/2006 act regarding promovation and shielding disabled people’s rights was modified in 2017. Pursuant to its new form local governments weren’t allowed to buy products or services from disabled people, but they were forced to hire by the number of 50 employee 4% disabled people or to pay the corresponding amount of money to the state itself. This measure meant to many associations a big slash. This association remained with only two clients after the law was modified. |
| Suggestions, recommendations/ | Associations must achieve that the government is not going to make make a decision in which they are concerned without consulting with them. |
PARTNER COUNTRY: SLOVENIA
| Organization Data(social entrepreneurship organization) | |
| Legal name /Business name | Organization: Citizens Association Leka Social enterprise: The Kind Transporter |
| Country: | Serbia |
| Legal form: | Civil society organization |
| Registration number: | 28103131 |
| Registration date: | 8 February 2013 |
| Registration authority | Serbian Business Registers Agency |
| Legal Address | |
| Street name and house number: | Trg Republike 52/ L14, Pirot |
| Region: | Pirot District |
| Postal code: | 18300 |
| Internet homepage: | http://ugleka.pirot.org |
| Main Phone: | +381607486230 |
| Main Contact Person | |
| Contact title: | Mr. |
| Contact position in organisation: | Chairman of the Board |
| Contact last name | Zivkovic |
| Contact first name | Aleksa |
| Contact phone | +381607486230 |
| Contact e-mail: | udruzenjeleka@gmail.com |
| Organization description | |
| Object of activity | Helping elderly citizens, environment protection |
| Objectives and mission of the organization |
|
| Number of employees: | 0 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
|
| An example of good practice | |
| Description of the activity max. 1500 characters |
The Kind Transporter- free services for members (from November 2012 until January 2017 services were completly free of charge for all residents older than 70 years of age) older than 70 years of age: groceries and medications delivery, paying utility bills. All services are provided by bicycle during all year. |
| Target group | Eldelrly people, youth |
| Sources of financing the organization’s activities |
City of Pirot, donation from entities, membership fees, providing commercial services to entities and individuals |
| Results of success, positive experience |
Many awards, TV, newspapers and internet coverage as well as two times on billboards all over country |
| Problems, limitations, development limits |
Defining problem and offering solution for it (going from zero to one) is NOT a problem. Problem is growing from one man |
| army in the field to youth that wants to get their first job& volunteering experience and expand other projects |
| Suggestions, recommendations/ |
| Organization Data (social entrepreneurship organization) | |
| Legal name /Business name | MLADINSKI CENTER BIT, zavod za drugo izobraževanje, izpopolnjevanje in usposabljanje, socialno podjetje (English: Youth center BIT, social enterprise) |
| Country: | Slovenia |
| Legal form: | Social enterprise/NGO |
| Registration number: | 945799568 |
| Registration date: | 24.01.2005 |
| Registration authority | District Court Novo mesto |
| Legal Address | |
| Street name and house number: | Trg svobode 1 |
| Region: | Črnomelj |
| Postal code: | 8340 |
| Internet homepage: | www.mc-bit.si |
| Main Phone: | +386 70 550 718 |
| Main Contact Person | |
| Contact title: | Program Manager and President of the board organization |
| Contact position in organisation: | Program Manager |
| Contact last name | Vitkovič |
| Contact first name | Klemen |
| Contact phone | +386 70 550 718 |
| Contact e-mail: | Vitkovic.klemen@gmail.com |
European Network for Social Integration Entrepreneurship:
social inclusion and development of rural regions for a better
European future – ENSIE – 588997-CITIZ-1-2017-1-1SK-CITIZ-NT
| Organization description | |
| Object of activity | Our main objects of activities are youth work, educational tourism and development of local community |
| Objectives and mission of the organization |
The program objectives are: – To encourage active youth participation and European citizenship; – To inform youth about different topics, connected with everyday life; – To offer adequate advice and to refer users to the suitable institutions; – To provide conditions, that will enable youngsters to spend their spare time in a creative way; – Non-formal education and training for youth work; – Promotion and involvement of young people in voluntary work; – To raise awareness and reduce the consequences of delinquent behavior among youth; – To encourage self-initiative and creativity of young people; – Direct and constant communication with the local youth in order to fulfill their needs; – To promote political (participation in decision-making processes) and social youth participation; – To provide participation of local youth in international activities; – Cooperation and networking with similar organizations of local, national and international level. |
| Number of employees: | 3 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
1 |
| An example of good practice | |
| Description of the activity max. 1500 characters |
In 2016, when Youth center BIT received a start up subsidy from the Ministry of the Economy, the team started with the renovation of a demolished student dormitory, whose owner is the Municipality of Črnomelj, and transformed it to the Touristic Educational Center. |
| With the help of the subsidies, the bedrooms, the living room, the conference room and the kitchen were renovated. The bathrooms and the apartment on the second floor of the building, in which, besides the Center, there are also premises of the local library and the school for children with special needs, still need to be renovated. Within two years since the establishment the Center hosted a large number of organized groups, such as youth exchanges, training courses, summer schools … In the center, there are 14 rooms and two apartments with three beds (and if necessary additional one) available for guests. All guests can use common rooms and the terrace, of which equipment is the result of one of the youth exchanges (Urban House) that took place under the auspices of MC BIT and in which participants also learned about social entrepreneurship as a tool for solving social problems. YC BIT also cooperates with Akrapovič, a company that employs a large number of foreign citizens, in the project of inclusion of foreign workers into local community. Currently, the Slovenian language course is conducted in the Youth center, in order to facilitate communication between the local population and foreign workers. |
|
| Target group | For the Touristic-Educational Center: organized groups such as youth exchanges, training courses, summer schools, music groups, sports teams … For inclusion into local environment: foreign workers |
| Sources of financing the organization’s activities |
In 2016 and 2017 Youth center BIT received next funding: – Erasmus+ hosting projects (youth exchanges, trainings of youth workers, European voluntary service); – Erasmus+ Sport – Civil society a fair play actor of EU; – Employment office of Republic of Slovenia – Municipality of Črnomelj; – Office of the Republic of Slovenia for Youth; – Ministry of culture; – Justice Gender equality (project Free to choose); – Ministry of economic development and technology (start-up subsidy for social enterprise). |
| Other funds were received from founders, donors and on the free market. |
|
| Results of success, positive experience |
For Touristic-Educational Center: The Center was much needed institution in the local community, since in the whole area before the Establishment of it, there was no facilities where organized groups could stay over night. With the opening of the Center, the numbers of tourists in Bela krajina is in the rise, which is also good for other local providers, that are in any way connected with tourism. |
| Problems, limitations, development limits |
Because of lack of the money, the bathrooms and the apartment in the Touristic-Educational Center are still not renewed and because of no elevator in the building we cannot host people with disabilities. |
| Suggestions, recommendations/ | In Slovenia, certain public services should be taken over by social enterprises. Users, the state and the employees would benefit from that action, since the public sector lacks orientation towards the user and entrepreneurship, as well as the system of rewarding employees is inadequate. |
| Organization Data (social entrepreneurship organization) | |
| Legal name /Business name | MLADINSKI CENTER BIT, zavod za drugo izobraževanje, izpopolnjevanje in usposabljanje, socialno podjetje (English: Youth center BIT, social enterprise) |
| Country: | Slovenia |
| Legal form: | Social enterprise/NGO |
| Registration number: | 945799568 |
| Registration date: | 24.01.2005 |
| Registration authority | District Court Novo mesto |
| Legal Address | |
| Street name and house number: | Trg svobode 1 |
| Region: | Črnomelj |
| Postal code: | 8340 |
| Internet homepage: | www.mc-bit.si |
| Main Phone: | +386 70 550 718 |
| Main Contact Person | |
| Contact title: | Program Manager and President of the board organization |
| Contact position in organisation: | Program Manager |
| Contact last name | Vitkovič |
| Contact first name | Klemen |
| Contact phone | +386 70 550 718 |
| Contact e-mail: | Vitkovic.klemen@gmail.com |
| Organization description |
| Object of activity | Our main objects of activities are youth work, educational tourism and development of local community |
| Objectives and mission of the organization |
The program objectives are: – To encourage active youth participation and European citizenship; – To inform youth about different topics, connected with everyday life; – To offer adequate advice and to refer users to the suitable institutions; – To provide conditions, that will enable youngsters to spend their spare time in a creative way; – Non-formal education and training for youth work; – Promotion and involvement of young people in voluntary work; – To raise awareness and reduce the consequences of delinquent behavior among youth; – To encourage self-initiative and creativity of young people; – Direct and constant communication with the local youth in order to fulfill their needs; – To promote political (participation in decision-making processes) and social youth participation; – To provide participation of local youth in international activities; – Cooperation and networking with similar organizations of local, national and international level. |
| Number of employees: | 3 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
1 |
| An example of good practice | |
| Description of the activity max. 1500 characters |
In 2016, when Youth center BIT received a start up subsidy from the Ministry of the Economy, the team started with the renovation of a demolished student dormitory, whose owner is the Municipality of Črnomelj, and transformed it to the Touristic Educational Center. With the help of the subsidies, the bedrooms, the living room, the conference room and the kitchen were renovated. The bathrooms and the apartment on the second floor of the building, in which, besides the Center, there are also premises of the local library and the school for children with special needs, still need to be renovated. Within two years since the establishment the Center hosted a large number of organized groups, such as youth exchanges, training courses, summer schools … In the center, there are 14 rooms and two apartments with three beds (and if necessary additional one) available for guests. All guests can use common rooms and the terrace, of which equipment is the result of one of the youth exchanges (Urban House) that took place under the auspices of MC BIT and in which |
| participants also learned about social entrepreneurship as a tool for solving social problems. YC BIT also cooperates with Akrapovič, a company that employs a large number of foreign citizens, in the project of inclusion of foreign workers into local community. Currently, the Slovenian language course is conducted in the Youth center, in order to facilitate communication between the local population and foreign workers. |
|
| Target group | For the Touristic-Educational Center: organized groups such as youth exchanges, training courses, summer schools, music groups, sports teams … For inclusion into local environment: foreign workers |
| Sources of financing the organization’s activities |
In 2016 and 2017 Youth center BIT received next funding: – Erasmus+ hosting projects (youth exchanges, trainings of youth workers, European voluntary service); – Erasmus+ Sport – Civil society a fair play actor of EU; – Employment office of Republic of Slovenia – Municipality of Črnomelj; – Office of the Republic of Slovenia for Youth; – Ministry of culture; – Justice Gender equality (project Free to choose); – Ministry of economic development and technology (start-up subsidy for social enterprise). Other funds were received from founders, donors and on the free market. |
| Results of success, positive experience |
For Touristic-Educational Center: The Center was much needed institution in the local community, since in the whole area before the Establishment of it, there was no facilities where organized groups could stay over night. With the opening of the Center, the numbers of tourists in Bela krajina is in the rise, which is also good for other local providers, that are in any way connected with tourism. |
| Problems, limitations, development limits |
Because of lack of the money, the bathrooms and the apartment in the Touristic-Educational Center are still not renewed and because of no elevator in the building we cannot host people with disabilities. |
| Suggestions, recommendations/ | In Slovenia, certain public services should be taken over by social enterprises. Users, the state and the employees would benefit from that action, since the public sector lacks orientation towards the user and entrepreneurship, as well as the system of rewarding employees is inadequate. |
| Organization Data (social entrepreneurship organization) | |
| Legal name /Business name | Društvo za spodbujanje kreativnih industrij Rokoroki, socialno podjetje (project Reciklarna) |
| Country: | Slovenia |
| Legal form: | Social enterprise |
| Registration number: | 4042344000 |
| Registration date: | 50599186 |
| Registration authority | Administrative unit Novo mesto |
| Legal Address | |
| Street name and house number: | Glavni trg 13B |
| Region: | Novo mesto |
| Postal code: | 8000 |
| Internet homepage: | Reciklarna FB page |
| Main Phone: | |
| Main Contact Person | |
| Contact title: | Mrs. |
| Contact position in organisation: | representative |
| Contact last name | Žalec |
| Contact first name | Polona |
| Contact phone | |
| Contact e-mail: | rokoroki.nm@gmail.com |
| Organization description | |
| Object of activity | Reuse of products |
| Objectives and mission of the organization |
Promotion of reusing for sustainable society, selling reused products for reasonable price, saving our environment, promoting sustainable lifestyle. |
| Number of employees: | 5 |
| – of which the number of disadvantaged people in the labor market, vulnerable, marginalized or disadvantaged in the social field |
3 |
| An example of good practice | |
| Description of the activity max. 1500 characters |
Project Reciklarna is environmental project of our society since 2015 in which we promote the concept of re-use as one of the aspects of a sustainable lifestyle. Reciklarna is a shop with used products and much more. Main activity is receiving, repairing and selling products that people want to put away but are still usable. We are here to make people rethink their shopping habits and possibilities of responsible shopping. The purpose of Reciklarna is to show how many useful objects find their space in the garbage, and at the same time draw attention to the lower quality of materials due to mass production. We pay special attention to textile, because it is recognized as a big problem in terms of disposal, when it is still usable in the form of clothing and other textile products. Here, the decline in the quality of materials is particularly obvious, since the materials are the easiest to compare. And also intensively promote |
| the reuse of furniture, we encourage many non-governmental and other organizations to use used furniture instead of new ones. We regularly organize events and workshops, where we represent reuse and at the same time encourage individuals to be accountable to the environment. We also prepare workshops for high school students and others (bags made of t-shirts, making slippers from pieces of various materials), host study groups, perform short lectures on environmental protection activities, preparing fashion show of reused clothes on the day of the Earth. |
|
| Target group | Every consumer, from young to older people. |
| Sources of financing the organization’s activities |
Financing from: – selling reused products, – state programmes for employing vulnerable groups, – local and national tenders. |
| Results of success, positive experience |
– 3 and a half years on the market, – increase of incomes, – increase of visability, – increase of number of employees, – increase of our activities. |
| Problems, limitations, development limits |
– lack of management knowledge, – lack of professional knowledge, – lack of financial fund for development. |
| Suggestions, recommendations/ | Enthusiasm is very important. |
FAQ
SLOVAKIA
I. Basic information on the social economy and social entrepreneurship:
1. What is the purpose of Law 112/2018 on Social Economy and Social Entrepreneurship?
“This law establishes social economy entities, social enterprises, organizations of the social
economy sector, providing support to enterprises in the broader sphere of the social economy and
defines the sector of social economy and state administration in the sphere of social economy” (§ 2
of the Act on Social Economy and Social Entrepreneurship 112 / 2018)
2. Why did this law actually arise and what does this law provide?
The Law addresses a need for systematic support for developing the sector of social economy – an
ecosystem to simplify, by motivating and supporting social entrepreneurship and the involvement
of disadvantaged and people with disparities in the process of work integration, as well as
providing better quality of public and community services to fulfill a measurable positive impact.
The basic pillars are:
a) Legislative environment created and established by Act 112/2018 on Social Economy and
Social Entrepreneurship, which updated and amended 17 different laws in order to create a
favorable atmosphere for the development of the social economy and social enterprise in the SR.
b) Advisory Infrastructure – National Project Institute of Social Economy. In seven regional
councils /self-governing regions/, apart from the Bratislava Self-Governing Region, professional
counseling centers will be set up /today 4 of them is fully operated/ to provide professional
counseling to support the establishment of social entrepreneurship.
(c) Available direct and indirect assistance in the form of financial instruments, public
procurement preferences and possible value added tax reductions.
3. What kind of population primary addresses the Law 112/2018 to help?
Disadvantaged and vulnerable people.
4. Who is a disadvantaged person according to law?
in the previous six months she was not employed except for her employment
in an employment relationship whose duration did not exceed a total of 40 days per calendar
year, and if the monthly wage or reward did not exceed the sum of the subsistence minimum for
one an adult natural person according to a special regulation, 1) and which
i. A person under 26 years of age – completed less than 2 years’ training, not employed for at least 6
months,
ii. More than 50 years old,
iii. Registered jobseeker for at least 12 months,
iv. Less educated than secondary vocational,
in. A lonely person living with one or more persons dependent on her care,
vi. A member of a national minority or an ethnic minority – development of
language skills, professional and work skills to be permanently employed in the labor market,
vii. A person who has permanent residence in the least developed district.
Persons with disabilities
She is recognized as disabled or not recognized, but has long-term health problems that prevent her from
joining the work environment.
1. Who is a vulnerable under Law 112/2018?
A vulnerable person for the purposes of this Act is:
i. the social service beneficiary according to a special regulation,
ii. a natural person in an unfavorable social situation,
iii. a child with special educational needs or a pupil with special needs,
iv. educational needs under a special regulation except for a child or pupil
v. a child or an adult person for whom social-rights measures are implemented
vi. child protection and social care
vii. junior adult physical education, adulthood, adulthood
viii. an individual who has been provided under the Care Agreement at an establishment
ix. social protection of children and social injuries after the execution of the court decision
x. reaching adulthood, or an adult person who has been entrusted with personal care
xi. other natural person than the parent, foster care, or issued by the court
xii. guardian,
xiii. a person reliant on the assistance of another person,
xiv. a person returning to the labor market after the end of maternity leave, if he does not
parental allowance, or after the parental allowance is over, 18 months from the end of the
maternity leave or from the end of receiving the parental allowance, if applicable is not later
than 6 months after the end of maternity or parental benefit kept in the register of jobseekers,
xv. persons related to the termination of termination of the exercise of personal assistance
or after the receipt of the cash allowance for care, 18 months after terminationpersonal
assistance or the end of receiving a cash contribution to if it is not later than 6 months after
termination of personal assistance, orfrom the end of receipt of the cash allowance for the
care taken in the records of the tenderers as employment,
xvi. a person who is the recipient of a retirement pension,
xvii. a person-non-entrepreneur whose monthly income does not exceed three times the
amount
xviii. natural person after release from imprisonment, detention or from
execution protective education,
xix. a person without nationality,
xx. an asylum seeker or a foreigner to whom additional protection is provided.
2. What activities can be considered as fulfilling the social impact under the Act 112/2018?
Providing health care
Providing social assistance and humanitarian care
Creation, development, protection, restoration and presentation of spiritual and cultural values
Protecting the human rights of fundamental freedoms
Education, upbringing and development of physical education
Research, development, scientific and technical services and information services
Creating protection and protecting the environment and protecting the health of the population
Services to support regional development and employment
Provision of housing, administration, maintenance and renovation of housing stock
I. Entities of the social economy and investment aid:
1. What types of social enterprises are recognized by Act 112/2018 in the wider area of the social
economy?
Non-economic activity:
a) Non-industrious third sector
b) Non-commercial activities of individuals for their own benefit (regular consumption of hobbies)
Economic activity:
(a) Normal commercial business activities / no support available or otherwise favored for these
enterprises in accordance with the Act 112/2018,
b) Social enterprises in the wider area / fulfills the social measurable impact but does not invest at least
50% of its profit to further development. The form of assistance will be regulated by a special regulation.
A social enterprise and a social enterprise invest at least 50% of the reinvested earnings in the further
development of a social enterprise are considered as enterprises with social impact (it is possible to
obtain support in § 17 a), b), c) and under § 19 par. Article 2 (a) and (b) of Law 112/2018. The relevant
sections 17 and 19 are included in the text under the paragraph. )
d) Registered social enterprises – (only for registered social enterprises are available all forms of support
under § 17 Investment aid, paragraph 1, letter a, in the case of reinvestment 100% of its profits to its
further development or apllying democratic administration If the social enterprise for example, invests
75% of its profits in further development, can not claim the forms of support under Article 17 (1) (d) to
(g),
§ 17 Investment aid
“(1) Investment aid shall be provided for the purpose of supporting investment or preparation of
investment and advisory services related to such preparation. Investment aid can be provided in a form
(a) a financial instrument,
(b) aid combined in one operation with a financial instrument under a separate regulation,
(c) conditional reimbursement of the financial contribution,
(d) non-repayable financial contribution,
(e) Subsidies for a registered social enterprise (hereinafter referred to as “subsidies”),
(f) the sale of a property at a price lower than the total value of the property or rent real estate at a
lower price than the value of the property rental determined by the expert opinions,
(g) income tax relief under a special regulation. “(Law 112/2018, § 17 Investment aid (1) (a) to (g))
§ 19Compensation assistance
“(1) Compensatory aid may be granted to an enterprise in the wider area of the social economy,
if, as a result of achieving a positive social impact, it is disadvantaged compared to entrepreneurs, who
perform similar activities for the purpose of making a profit.
(2) Compensatory aid may be provided in the form
(a) a financial instrument,
(b) aid combined in one operation with a financial instrument under the statutory instrument, 54)
(c) non-repayable financial contribution,
(d) subsidies. “(Law 112/2018, § 19 Compensatory aid, paragraph 1 (a) to (d))
It is important to emphasize the commitment of support to the development of social entrepreneurship,
which is directly linked to economic activity. This means that an economic activity is needed to obtain
a returnable and possible irreversible financial instrument. At the same time, the venture does not need
to make a profit, but must be able to repay its liabilities, including repayments of loans, loans, ect.
The basic division of social enterprises is:
a) social enterprise (registered)
(b) a social enterprise with a social impact
1. What are the types / forms of a registered social enterprise?
A registered social enterprise that achieves a positive social impact by fulfilling:
(a) The public interest is a public undertaking
b) A community interest, community-based enterprise
From the point of view of the activity, the registered social enterprise can be registered as
1. Integration social enterpreneurship
2. Social living enterpreneurship
3. Other registered social enterprises – (not specified) that meet all the conditions
of Law 112/2018 and carry out economic activity on the basis of public interest and
positive social impact.
I. Forms of support under Law 112/2018 for an integrative social enterprise
Direct:
I. Investment aid consists of an interest rate of around 0% and non-repayable financial assistance. In
order for a registered social enterprise to receive non-repayable investment financial assistance, it must
obtain a refundable financial assistance of at least 20% of the total non-repayable assistance. This means
that if a company requests non-repayable assistance of EUR 100,000, it must first receive a refundable
financial assistance with interest of around 0% in the amount of EUR 20,000,
II. Subsidy – In the case of the placement of a disadvantaged or vulnerable person and his / her transition
to an open labor market from a registered social enterprise, that enterprise may claim the subsidy as a
loss suffered as a result of the loss of a qualified worker,
III. Conditional reimbursement,
IV. Compensatory assistance – Act 5/2004 on Employment Services under §53f and §53g.
§53f Compensatory allowances to the integration enterprise are those of a worker who has gone
into the open market as compensation for the loss of a trained worker and at the same time caused
harm in production sense at disposal to a registered social enterprise.
In this sense, “The Office provides a monthly contribution to the integration enterprise
(a) terminating the employment relationship with the employee who was a disadvantaged person and
who has been employed by an employer who is neither an integration enterprise nor a dependent of an
integration enterprise until at least two years after the start of such employment and the employment
relationship of that employer is at least agreed half of the weekly working time. “(Law 5/2004 on
employment services, Article 53f (1) (a), more in the wording of the relevant law)
(1) The Office shall provide compensatory allowances to the Integration Undertaking, if one so requests,
in writing
(a) Wage costs associated with the employment of disadvantaged or vulnerable persons
(b) Additional costs associated with the employment of persons who are disadvantaged due to their
health (Law 5/2004 on employment services, §53 g (1) (a) and (b), more in the wording of the relevant
law)
Indirect:
i. Support for demand
ii. Procurement
iii. Tax measures
II. Social integration enterprise
How many people do I have to employ so I can get help for a social integration enterprise?
Min. 1 employee + founder of the company.
1. How many percentage of disadvantaged or vulnerable people do I employ so that I can register
as social integration enterpreneurship?
Disadvantaged – at least 30% of the total number of employees
At least 30% of the total number of employees are vulnerable
or 40% of disadvantaged people and vulnerable people out of the total number of employees
2. What is the maximum amount of investment aid to create one job for a disadvantaged or
vulnerable person in a social integration enterprise?
10.000 €
3. How is investment aid distributed to a social integration enterprise?
a. Conditionally reimbursable financial contribution – mediation of interest-free loan by
the bank,
b. Non-refundable financial contribution – up to € 500,000. It is possible to apply it more
than once to the maximum amount of 500,000 euros. This means that if the company
gets a € 50,000 subsidy in the first year and creates 5 jobs for vulnerable and
disadvantaged people, it still has room to grow and get more funding. However, these
funds are still linked to job creation with a maximum of EUR 10,000 per job. At the
same time, long-term sustainablility of jobs and enterpreneurship must be ensured,
c. Subsidy – a one-off allowance for the loss of qualified labor in the context of its
transition to an open labor market,
2. Compensatory allowance – Employment Services Act 4/2004 §53 f) and § 53 g)
6. How long can compensatory aid receive a social integration enterprise and which population groups?
For 12 months consecutively for a disadvantaged person, a compensatory allowance of up to 24 months
for consecutive calendar months may be used in the case of a severely disadvantaged person.
7. What VAT allowances can a registered social enterprise claim and under what conditions?
Reduction of the tax rate from 20% to 10% for 100% reinvestment of profit. A reduced tax rate of 10%
of the tax base is applied to goods and services under a special regulation.
The amount of the tax value added tax may not exceed 20% of the total approved investment aid in the
form of tax relief under a special regulation.
III. Social housing:
1. What conditions do I have to meet in order to establish a social housing company?
A social housing enterprise must meet a public-service character, in which self-governing regions does
not have a majority share and its positive social impact ensures the provision through beneficial rent of
housing. It must be a registered social housing enterprise.
2. Can self-government sell to the social enterprise at a lower price the property of the municipality, the
city, the VUC as it is exposed to an expert opinion?
Yes, but for at least 30 years, the social enterprise must not sell it. In the case of the sale of the property,
the local authority has the right to purchase the property for the original sale price. However, if the
purchaser buys the building and invests, this amount is divested and the original purchase price does not
apply.
IV. Trading conditions and social status recognition:
1. What conditions must be met and how is a social enterprise registered?
Conditions
Integration social enterprise – fulfills the conditions for achieving positive social impact
and the way of measuring it § 12ods. 1 and 2
Social housing enterprise – fulfills the conditions for achieving positive social impact and
the way of measuring it § 13 par. 1 and 3
Another registered social enterprise – has a greater positive social impact than an
entrepreneur doing similar activity for profit.
has an advisory body
has a basic document containing:
1. description of the main target according to § 5 par. (1) b)
2nd way of measuring positive Social impact
3. subject of economic activity
4. a description of how the goods and services that the applicant produces, deliver,
distribute, contribute to achieving a positive social impact (PSV)
5. the applicant’s commitment to use more than 50% of the profits to achieve the main target
according to
6. a description of the involvement of stakeholders through the Advisory Committee in
accordance with the application of democratic governance
7. a description of how the conditions are met
8. has its registered office in the case of a legal person or place of business in the territory
of the Slovak Republic, another Member State of the EU, in the case of a natural person
9. is trustworthy
10. has a project of a registered social enterprise, including a calculation
11. is blameless
12. observe in its internal organization and activities the conditions according to the
Commercial Code, statutes, etc.
13. does not have arrears on the insurance company
14. does not have any tax arrears in Slovakia
15. did not break the ban on illegal work over a 3-year period for the application
16. has no assets declared in bankruptcy
17. does not have the registered business status canceled
CZECH REPUBLIC
1. What is Social Business?
– social business are business activities that benefit society and the
enviroment
– plays an important role in local development and often creates job
opportunities for people with health, social or cultural disadvantages
– profit is largely used for the futher development of a social
enterprise.It is egually important for a social enterprise to achieve
profit as well as increase public benefit.
2. Principles of social enterprise?
– local
– economic
– environmental
– local
3. What condition must a social enterprise meet?
– have rules for the participation of employees and members on the direction
of the company,
– have at least 30% revenue from own revenues,
– not disturb local communities beyond the level necessary to condut business,
– employ at least 1 person and at the same time recruit at least one full-time
employee for a continuous period of at least 12 months before applying for a status
of a social enterprise,
– publish your founding law,
– publish their final owners and have a transparent ownership structure,
– to prove the absence of overdue debts to the tax administration or social security,
and health insurance and contribution to the state employment policy,
– prove that he is not in the process of liguidation or bankruptcy
– its statutory bodies are impeccable
– has at least one accounting period as an entrepreneur, and at the same time fulfills
all the conditions for achieving the status of social enterprise.
4. Cant he enterpreneur be a social enterprise?
For enterpreneurs with status of social enterprise, the restrictions on profit management will
apply – more than 50% of the profit must be used for the further development of socially
beneficial activities, and these businesses will have an obligation to monitor economic, social
and environmental benefits. The socially beneficial activity promoted by a social enterprise in
part of its profits is understood to mean, in particual, the activities of the area of
environmental protection, culture, education, assistance to disadvantaged persons or
development of local communities.
5. What are the current possibilities for financing social enterprises in the Czech
republic?
In principle, there are five sources of funding: own funds, grants, loans and credits,
contributions from the Employment Act, and other sources that can sometimes be combined.
1. OWNERSHIP: From the point of view of the entrepreneur, it is the safest source of
funding. We recommend that you create a financial reserve from your own resources
before you start a business.
2. GRANTS: A well-developed business plan, including a convincing financial plan, is
a prereguisite for obtaining a grant. Experience with Structural Fund grants already
exists in the Czech Republic.
3. LOANS AND LOANS: For loans and loans, there is even more to be paid for grants,
as a prereguisite for obtaining them is a well-developed business plan with a detailed
and realistic financial plan. Loans are given by financial institutions, which are mainly
concerned with their own profits, your social goals are essentially uninterested and
suspicious. Do not try to risk the loan or loan, and always remember the stability of
the business, you can not borrow more than you are able with reserve to pay off.
4. CONTRIBUTIONS TO THE EMPLOYMENT ACT: Only social enterprises employing
disabled
people are entitled to contributions from the Employment Act. This is essentially a
call-up allowance for employers, because people with disabilities are limited in their
performance. Even though these contributions are called grants, they act payment
for a service performed by disabled employers for the state. Those who employ
socially disadvantaged people are not entitled to any caller’s allowance. As a result,
most social enterprises employ disadvantaged people.
5. OTHER SOURCES: When setting up your business, you can also ask for sponsors and
donors.
They can contribute financially, not necessarily just money. It is usually easier for them to
make a donation.
ITALY
Develop 5 FAQ Social Integration Entrepreneurship FAQ (for example: definition of social
entrepreneurship, what legal forms of social enterprise exist, who can set up a social enterprise,
what are the sources of social business financing, etc.) typical of your country.
1) Which is the Italian legislation that covers Social Enterprises?
In Italy, Social Enterprises are considered part of the so-called “third sector” (together-with
charity organizations, Social Promotion Associations, philanthropic organizations, social cooperations, associative networks, and Friendly Societies). They all stand by the n. 117
Legislative Decree of july 2017 which has just recently underwent a radical reform: the n.105
Legislative Decree of august 2018.
2) What is the minimum percentage of “disadvantaged” labour that a non-profit organization
needs to occupy in order to be considered “social” by the Italian Legislation?
According to new legislation (n.105 Legislative Decree of the 3rd of august 2018) a non profit
organization can be considered “social” if at least 30% of it’s total labour force comes from a
so-called “disadvantaged” category. Each of these working units can be considered
“disadvantaged” for a maximum of 24 moths of continuous work, after which they can no
longer be included in that percentage.
3) How does Social Economy coexist with profit, under the Italian legislation?
According the Italian legislation, there can be “Social Economy” only when there is no or little
economic profit and, if present, this is re-invested within the company’s own social objective.
The n.105 Legislative Decree Reform has signed new limits to “profit distribution”: Starting
from this year (2018), Social Enterprises, when organized in the form of cooperatives, may
distribute profit to it’s associates under the form of “rebates” which, in specific cases, are
therefore no longer considered “dividends” (which are still not admitted).
4) How does the Italian legislation encourage for-profit businesses to deal with their CSR
(Cooperate Social Responsibility) and the peruse of a more social economy?
As of last year 2017, it has become mandatory for all businesses with, in average, over 500
employees per financial year, to publish a sustainability report towards transparent
communication of both positive and negative impact on all three sustainability plans: economic,
environmental and social.
SERBIA
What is social economy?
The social economy implies that social goals are more important than economic ones – and
that these social objectives are achieved in an economically sustainable way. The social
economy includes a number of organizations that operate in order to make the profit they
make towards fulfilling a particular social mission. The mission may relate to the health care
or cultural needs of people in the community, education, the preservation of the environment,
or the inclusion of different social groups through the creation of jobs.
How to finance start up of social enterprise?
State institutions dealing with the social entrepreneurship sector, mostly grants for
implementing social activities. Banks are least favorable as in other countries, but most easier
to get mone for starting your own business. There are also non returnable grants for young
enterpreneurs from the state. Other solution are international foundation that give grunts for
social inclusion and enterpreneurship and for development of this idea.
What are the differences between SEs and charitable organizations?
Social enterprise should be self-financing. The major income source should be generated by
selling goods and services, and that differentiates it from traditional non-profit organizations
or charitable organizations which are mainly supported by donation and sponsorship.
Can social enterprise receive donations?
Social enterprise can receive donation or sponsorship. However, social enterprise is a selffinancing business and it should rely on income generated by selling goods and services rather
than through grants and donations.
Structure of earnings of an employee?
Earned work and time spent at work (basic salary, earnings for work performance and
increased earnings) Earnings based on the employee’s contribution to the business success of
the employer (bonuses, bonuses, etc.) Other benefits in accordance with the general act and
the employment contract.
CROATIA
– What is the definition of social entrepreneurship?
Business based on the principles of social, environmental and economic sustainability, whereby
the generated profit / surplus of income is wholly or mainly invested in the welfare of the
community.
– What legal forms of social enterprises exist?
NGOs, SMEs (d.o.o., j.d.o.o.,d.d.,), cooperative, public institution, foundation, artisan
– all of them need to be nonprofit, and if they are for profit they need to reinvest at least 75% of
income
-with a social mission of organization
– Who can set up a social enterprise?
A social enterprise can be set up by physical and private entities. There is a restriction only
when the public authority is the only owner of the company, in that case the company is not a
SE although 100% of income is reinvested.
– What are the sources of social business financing?
In Croatia most of the SE can be financed trough
1. EU funds (European social fund)
2. National funds – Ministry of labor, Ministry of entrepreneurship, Ministry of culture, Ministry
of veterans
3. Erste foundation, Unicredit foundation, Nesst, Act group, Cooperative for ethical financing
(microloans, loans, or grants)
– What is the most common form of social enterprise?
Most common form is cooperative or NGO, there are more than 100 social enterprises in
Croatia mostly working with services and employment of
HUNGARY
Social economy: consists of social-communal enterpreneurships, which connect unsatisfied
needs with unused work force on local level. They are located between the state and the
market, and they fulfill both economic and social mission as well.
Legal forms of social enterprises:
– associations,
– foundations,
– social cooperatives,
– not-for-profit Ltd.s
Social cooperative: Social cooperatives are autonomous associations of those people, who
have been united for the purpose to fulfill their common economic, social and cultural goals
through their common properties and their enterpreneurship managed in a democratic way.
Principles of social cooperatives:
– voluntary and open membership,
– democratic member control: one member-one vote,
– participation of members in economic activities,
– autonomy and independence,
– education, training and sharing information,
– communal responsibility,
– cooperation of social coopoeratives
Main objectives of collaboration of social coopoeratives:
– taking advantage of joint tenders,
– market cooperation (buying each other’s products),
– information flow,
– horizontal cooperation (joint service structure),
– market intercession,
– common thinking, brainstorming,
– advocacy,
– creation of knowledge base,
– resource supplementation,
– clustering,
– knowledge share,
– joint marketing
Sources of social enterprise financing:
– members’ fee,
– income from economic activity,
– donations,
– EU and national funds and supports,
– preferential taxation,
– possibility of public work in special fields
LATVIA
1. What is a social business?
Social business involves the production of goods or services in order to solve a social
problem or to bring benefits to the public, rather than maximizing profits for business
owners. Social business types, formats, goods, services can be very diverse, social
enterprises can be large and small, internationally and locally, but they all share the desire
to generate high social added value through business methods.
2. What is the definition of a social enterprise?
The law states that “A social enterprise is a limited liability company that has the status of
a social enterprise in accordance with the procedures prescribed by this Law and which has
a social activity that produces a positive social impact (for example, the provision of social
services, the creation of inclusive civil society, the promotion of education, support for
science, protection and preservation, protection of animals or the safeguarding of cultural
diversity). ”
3. What legal form is better to choose when creating a new social enterprise?
According to the Law on Social Business, a social enterprise in Latvia is limited liability
company, which has acquired the status of social enterprise.
4. What is the social impact and how to measure it?
Social impact is the positive change that social entrepreneurs can make in measurable
quantitative or qualitative data. Social impacts are a tool for social enterprises not only for
evaluating and representing their own activities but also for improving and attracting
investors. Neither in the world nor in Latvia there is a common methodology for assessing
social impact, but there are several widely used social impact assessment tools.
5. What support do you have for social entrepreneurship in Latvia?
Support for social entrepreneurship can be divided into two types: financial and non-financial.
The largest financial support program specifically for social business is the support program of
the Ministry of Welfare and financial institution ALTUM. Social enterprises can also use other
state and local government business support instruments, such as Municipal Grants Program,
Agency of Investment and Development of Latvia and ALTUM. Similarly, social enterprises
can attract private investors willing to invest in the development of a social enterprise.
ROMANIA
1.What is the Social Economy?
Social Economy (ES) = an activity group organized independently of the public sector, aimed at:
a) the priority of individual and social goals towards profit growth;
(b) solidarity and collective responsibility;
(c) harmonizing the interests of associate members and the public weal and / or the community
interests;
(d) democratic monitoring of members over the activities carried out;
(e) voluntary and free association in organizational forms of social economy;
(f) separate legal personality, autonomy of administration and independence from public authorities;
(g) much of the financial gain / surplus is for public interest objectives, for the collectivity or the nonmaterial interests of the members.
2. Is there any known social enterprise in Harghita county?
In Romania social politics are in it’s infancy. In Harghita county we do have one enterprise which can
be seen as social one.
3. Why are enterprises that work in the social sphere acknowledged as social enterprises by the
law?
The reason for this is that they don’t accomplish all criterias needed for this so they cannot be officially
social enterprises.
4. Which one was the firs social enterprise in our county?
The first enterprise was the Association of Physically Disabled from Harghita County, founded in
1990, but because of the legal conditions cannot be legally a social enterprise.
5. Why was functioning for most of social enterprises made impossible in 2017?
The 448/2006 act regarding promovation and shielding disabled people’s rights was modified in 2017.
Pursuant to its new form local governments weren’t allowed to buy products or services from disabled
people, but they were forced to hire by the number of 50 employee 4% disabled people or to pay the
corresponding amount of money to the state itself. This measure meant to many associations a big slash.
This association remained with only two clients after the law was modified.
SLOVENIA
Definition of social entrepreneurship
Social entrepreneurship is part of a wider concept of social economy, defined by the legal
definition (ZSocP-A) as “an economy consisting of social enterprises, cooperatives, enterprises
for disabled persons, employment centers, non-governmental organizations (societies,
institutions, foundations) which are not created exclusively for the purpose of gaining profit,
operate for the benefit of their members, users or a wider community and produce marketable
or non-marketable goods and services.
What legal forms of social enterprise exist
The Social Entrepreneurship Act (ZSocP) (Official Gazette of the Republic of Slovenia, No.
20/2011) knew type A and B of social enterprises, which have separated social enterprises
according to whether they obtained status from the title of implementation of statutory activities
(type A) or social enterprises that obtained employment status of the proportion of people with
disabilities (type B).
Who can set up a social enterprise
The status of a social enterprise may be acquired by a non-profit legal entity – society, institute,
institution, cooperative, European cooperative, employment center, company for disabled
persons, other company, etc., which meets the principles of social entrepreneurship and the
conditions set out in the ZSocP-A, in particular:
– performs economic and non-economic activities,
– does not divide assets and surplus revenue,
– is independent and autonomous in relation to profit-making companies, public law legal
entities or local communities,
– provides an inclusive governance based on co-decision and democratic decisionmaking, and
– meets other conditions stipulated by The Social Entrepreneurship Act (ZSocP-A)and
the acts governing the legal organization of a particular type of non-profit legal entity.
Main characteristics of social enterprises
– they are established on the basis of a voluntary decision by the founders (autonomous
initiative);
– the purpose of establishing is not solely the acquisition of profits; the assets and the
surplus of revenues over expenditure are invested in the activity of a social enterprise;
the distribution of surplus income over expenditure is not permissible (nonprofitability);
– they are established with a view to permanently pursuing their activities and can recruite
the most vulnerable groups of people on the labor market, which is also a public interest
(the pursuit of activities in the public interest);
– members are acting on a voluntary basis (volunteering);
– they are independent – autonomous in their management;
– they are maket oriented – the production and sale of products or the provision of services
on the market are carried out in accordance with market laws;
– may include volunteering (inclusion of volunteering);
European Network for Social Integration Entrepreneurship:
social inclusion and development of rural regions for a better
European future – ENSIE – 588997-CITIZ-1-2017-1-1SK-CITIZ-NT
– individual decision-makers or owners do not have a dominant influence in decisionmaking; all members are elected by one member vote, regardless of the share of capital
invested (equity of membership);
– stakeholders also participate in the decision-making process (stakeholder participation
in management);
– provide transparent financial management and internal control over material and
financial transactions (transparent business);
– work permanently for the benefit of its members, users and the wider community
(socially beneficial operation).
What are the sources of social business financing
Social enterprises are mostly financed:
– from public funds,
– the provision of services in the public interest,
– the sale of services and products on the market.