Development of Entrepreneurial Skills in the Field of Social Services

1
Development of Entrepreneurial Skills in the
Field of Social Services

• The Case of Bulgaria
• Torino, 11-12, November, 2005
• CENTER FOR COMPARATIVE STUDIES
• SOFIA

2
Development of Entrepreneurial Skills in the
Field of Social Services

• The paper characterizes the changes and defines
  the perspectives of the three sectors
  education, healthcare and social services, from
  the point of view of the situation on the labor
  market, the state policy and social sphere
  priorities, and the expectations and demands of
  the population.

3
Development of Entrepreneurial Skills in the
Field of Social Services

• The objective is to propose an analysis and an
  evaluation of the opportunities for development
  of entrepreneurship in the social sphere. The
  potential of the employed in education and
  healthcare, and the growing needs of social
  services leads us to differentiate a new
  professional profile for the country that of
  the social entrepreneur.

4
?. Current socio-economic situation in Bulgaria

• Economic development
• Demographic situation
• Social situation

5
Economic development

• The economic development of Bulgaria after 1989
  could be divided into three periods
  
• The first period (1990 1996-97) may be defined
  as a period of shock adaptation to market
  imperatives.
  
• The second period (1997-2001) was marked by the
  introduction of the currency board arrangement
  
• The third period (2001-2004) is under way in the
  context of the pre-accession strategy of Bulgaria
  for membership in the European Union.

6
Main economic indicators
7
Economic development

• Despite the optimistic macro-economic indicators,
  Bulgarias economy is facing serious challenges
  
• Lower purchasing power parity per capita of the
  population (only ¼ of that in the EU - 15)
  
• Unemployment remaining above 10, which continues
  to be a very serious problem for the country
  
• Low average monthly real salary (about Euro 154
  in 2003), which is not more than 40 of its value
  in1990 and is much below the average figures for
  EU.

8
Demographic situation

• The population of Bulgaria is declining after
  1990 by more than 900 thousand persons. This
  de-population reflects the following
  
• Declining birth rates from 12.1 in 1990 to 9?
  in 2004.
  
• Growing mortality rates from 12.5 in 1990 to
  14.2 in 2004.
  
• Emigration based on estimates available, the
  number of Bulgarian emigrants over the last 15
  years reached between 500 and 700 thousand
  persons.

9
Demographic situation

• As a result of these processes, Bulgarias
  population is advancing in age
  
• In the end of 2004 the share of the population
  under 15 years of age fell to 15.1 of the entire
  population.
  
• Due to increasing mortality, the number of
  persons over working age also declined, but
  retained a much higher share 23.3.
  
• The ageing of the population has a direct
  influence on the development both of the
  education sector, as well as of healthcare and
  social services.

10
Social situation

• Poverty
• Unemployment

11
Poverty

• According to some surveys poverty in the country
  fell in 2003 in comparison to 2001.
  
• At present, about 14 of countrys population
  live at poverty line of BGN 102 (Euro 50).
  
• In the structure of poor households, those
  containing economically inactive and unemployed
  members prevail.

12
Unemployment

• Although decreasing, the level of unemployment
  remains high, particularly in comparison to the
  ?U-15.

13
Unemployment

• During the period of 2000-2004, the share of
  unemployed women grew by 2.2 percentage points
  and reached 54.9. The share of women without a
  job for more than 3 years is particularly high.

14
Conclusions

• The number of the population of Bulgaria
  decreases permanently. The analysis shows that
  the decline in number of children will continue.
  This mandates a restructuring of resources in the
  education sector.
• The ageing of the population poses the issues of
  linkage of the labor market to vocational
  training and lifelong learning. Besides, ageing
  increases the needs of health and social
  services.
• Population mobility leads to de-population of
  entire regions which puts the organization and
  administration of the education system,
  healthcare and social activities into a new
  situation.
• The social situation in Bulgaria, characterized
  by long-term unemployment, poverty problems,
  marginalization of entire communities etc.,
  creates new vulnerable groups long-term
  unemployed persons, unemployed women heads of
  families children, living in absolute poverty
  elderly people living alone, etc.

15
??. Situation, Problems and Trends in the
Education Sector

• Regulatory Framework of the Education System in
  Bulgaria
  
• Educational Structure of the Population
• Education System of the Republic of Bulgaria
• Staffing of the Education Sector
• Financing of the Education Sector

16
Regulatory Framework

• The legislation, dealing with the changes in the
  education sector, comprises
  
• Public Education Act (1991, 1998, 1999, 2003) and
  the Rules on its Implementation
  
• Level of Education, General Education Minimum and
  Curriculum Act (1999)
  
• Vocational Education and Training Act (1999, as
  amended 2003)
  
• Higher Education Act (1995)
• Academic Degrees and Academic Ranks Act (1975,
  2000)

17
Educational Structure of the Population

• Educational Structure of Bulgarias Population
  (25-64 Years of Age)
  

18
Education System of the Republic of Bulgaria

• Bulgarias education system comprises the
  following levels
  
• Pre-school education
• Primary education, lasting 8 years
• Secondary education, lasting 4-5 years
• Higher education

19
Education System of the Republic of Bulgaria

• Pre-school education covers children from ages 3
  to 6-7. Compared to 1991, a decline is observed,
  both of the number of childrens establishments,
  as well as of children, enrolled in them, and of
  the pedagogical personnel employed (the greatest
  decline by 33.7)

20
Education System of the Republic of Bulgaria

• The number of private establishments and of
  children, enrolled in them, grew rapidly. Only in
  the last four years private nursery schools
  increased by 33, and the number of children
  therein by 83.
• The increase in the number of private
  establishments, however, can not compensate for
  the decline in the number of children, enrolled
  in the system, nor to ensure employment for the
  teachers, who were made redundant.

21
Education System of the Republic of Bulgaria

• Primary schools are offering redundant
  pedagogical staff. It is precisely the staff in
  primary education, which almost entirely consists
  of women (over 90).
• The decline in the number of teachers took place
  mainly at the expense of younger age groups. This
  indirectly indicates the potential of dismissed
  staff to find jobs elsewhere.

22
Education System of the Republic of Bulgaria

• The problem of children who left school
  acquired serious dimensions during the last few
  years (about 3 of pupils).
  
• This problem could be resolved by appropriate
  social work and activities, aimed at increasing
  the motivation, including by psychological
  consultations.

23
Financing of the Education Sector

• During the last few years spending on education
  was growing, both in absolute, as well as in
  relative terms (as a percentage of GDP).
  Nevertheless financing of education is still
  insufficient (about 4 of GDP) and clearly below
  the level of the EU Member states (5.5 of GDP).

24
III. Situation, Problems and Trends in the
Healthcare Sector

• Health Status of the Population in Bulgaria
• Regulatory Base of the Reform in Healthcare
• Health Sector Reform and Changes in the Structure
  of Healthcare
  
• Staffing of Healthcare Sector
• Financing of Healthcare Sector

25
Health Status of the Population

• The average life expectancy at birth in Bulgaria
  is lower compared to that in the EU Member States
  by 7-8 years.
  
• The Average life expectancy at birth in good
  health, linking the duration of life to its
  quality, is even worse lower that the EU
  indicators by about 7 for men and 9.6 years for
  women.

26
Health Status of the Population

• Over the last 10 years, significant changes were
  observed in the frequency and structure of
  registered ailments of the population.
  
• Based on data from the WHO, Bulgaria occupies one
  of the first places in Europe (9-th among a total
  of 51 countries) in terms of number of newly
  registered cases of disability.

27
Conclusions

• Over the last decade, the health policies have
  not yield considerable positive results
  
• The demographic and socio-economic developments
  and the health status factors, related thereto,
  have been determining the health status of the
  population
• The worsening of the health picture results also
  from the problems and challenges of the reform in
  the healthcare sector
  
• The majority of reasons for the negative
  development of the health status may be prevented
  by suitable prevention and therapeutic social
  activity.

28
Regulatory Base of the Reform in Healthcare

• The regulatory framework of the healthcare sector
  includes
  
• Public Health Act (1973, as last amended in
  2000)
  
• Medical Treatment Facilities Act (1999)
• Health Insurance Act (1998)
• Doctors and Dentists Professional Organizations
  Act (1998)
  
• Human Medicinal Drugs and Pharmacies Act (1995).

29
Healthcare Sector Reform and Changes in the
Structure of Healthcare

• In the middle of 2000 the reform of the
  outpatient medical care was launched. It was
  organized entirely on market principles.
  
• The institution of the General practitioner (GP)
  emerged, monitoring the health and providing
  rendering primary medical help. During the period
  2000-2003 the number of GPs grew by 3.6 points.
• From the point of view of the broader functions,
  assigned to them, the qualifications of GP's are
  unsatisfactory.

30
Healthcare Sector Reform and Changes in the
Structure of Healthcare

• The reform of the hospital care started a year
  after and encompassed all types of hospital
  establishments multi-profile and specialized.
  Hospitals received the status of a commercial
  company.
• Their financing was changed public budget
  financing, based on the retrospective principle
  (expenses over a preceding period), was combined
  by financing from the NHIF, based on the
  so-called clinical paths.

31
Staffing of the Healthcare Sector

• The official data indicate a decline in all
  categories of medical staff after 1990 (with one
  exception only of dentists).
  
• Despite the decline in the number of physicians,
  their number per 10 thousand persons are growing.
  The reason for this can be found in the negative
  demographic trends.
• The decline in the number of doctors assistants
  and of midwives is respectively of 3 times and by
  one-half.
  
• There is a sharp drop in the number of nurses as
  well as in their number per 10 thousand persons
  (nearly 2 times).

32
Financing of Healthcare Sector

• Over the last 4 years, the total public
  expenditures on healthcare has increased.
  
• Despite this, there are still considerably lower
  (4.8 of the GDP in 2003) than the average for
  the EU-15 Member States.

33
IV. Situation, Problems and Trends in the Sphere
of Social Services

• Regulatory Base of Reform in the Sphere of Social
  Services
  
• Structural Changes in the Sphere of Social
  Services
  
• Staffing of the Social Services Sector
• Financing of Social Services

34
Social services sector

• The difficulties, accompanying transition high
  unemployment, poverty, marginalization and social
  exclusion, together with other unfavorable
  factors ageing of the population, deteriorating
  health status, some negative trends among the
  youngsters dropping out of schools, behavioral
  deviations, etc., broadened the circle of
  persons, requiring social assistance and support.

35
Social services sector

• The difficulties of the transition restricted to
  a minimum the opportunities for improving the
  quality of social services in the country.
  
• The fixed assets of social services
  establishments are depreciated and partly
  unusable.
  
• Some of the employed in the sector have
  different professional qualifications and
  obtained social sphere skills from practice.
  
• In the long run, despite all declarations, the
  social sector was not among the prestigious ones.
  In this sense, further reform and modernization
  of the social services sector are inevitable.

36
Regulatory Base of Reform in the Sphere of Social
Services

• The basis for the reforms in social services is
• Social Assistance Act (1998, as last amended in
  2003)
  
• Rules on the Implementation of the Social
  Assistance Act (1998, as last amended in 2003)
  
• Child Protection Act (2004)
• Ordinance on the standards and criteria for
  social services for children (2003).
  
• Rehabilitation and Integration of Persons with
  Disabilities Act (2004)
  
• Protection against Domestic Violence Act (2005).

37
Reform in the Sphere of Social Services

• The state abandoned its monopoly on the provision
  of social service - a redistribution of functions
  was conducted between central and local
  authorities
• Social services establishments were transferred
  under the authority of local authorities
  
• The role of municipal councils in the selection
  of providers of social services is increasing.
  
• The deregulation of social services opens up a
  niche for social entrepreneurship.

38
Reform in the Sphere of Social Services

• It is envisaged to increase the role of the civil
  sector in the control over the services provided,
  through the public councils, consumer councils,
  councils of consumers of social services etc.
  (envisaged on the level of municipalities).

39
Structural Changes in the Sphere of Social
Services

• At present the accent in the development of this
  sphere is put on its de-centralization and
  de-institutionalization. Priority is accorded to
  the development of social services, provided in a
  home environment, by promoting the development of

40
Structural Changes in the Sphere of Social
Services

• Day centers Centers for social rehabilitation
  and integrationSocial patronage at home
  Development of social assistanceEncouragement of
  personal assistance.
• New forms of social services
• Crisis centers, providing services to victims
  of domestic violence, as well as protected
  dwellings, family-type accommodation centers
  etc.
• The so-called foster care for raising and
  education of children in a family environment by
  their relatives or other foster parents.

41
Structural Changes in the Sphere of Social
Services

• Providers of social services
• Central and local authorities
• Contractors of such services (operators, external
  to the system, registered under commercial
  legislation and in the respective executive
  agencies)
• Non-governmental organizations.

42
Staffing of the Social Services Sector

• Social services are not a subject to separate
  monitoring by national statistics. Therefore it
  is difficult to evaluate the number of employees
  in this sector.
• Based on current information from the EA it may
  be concluded that there is no shortage of
  personnel in this area.
  
• On the other hand, no dismissals of social
  workers are observed.

43
Financing of Social Services

• Financing of social services is conducted through
  the system of social support from
  
• Central budget at central and local level
• National and international programs, as well as
  local and foreign donations
  
• Social Assistance Fund.
• The Social Assistance Fund was established under
  the authority of the Minister of Labor and Social
  Policy. It is replenished from budgetary
  subsidies, donations and inheritances. It also
  collects 30 of the charges for social services,
  financed from the central budget, etc.

44
Conclusions

• Demand for social services outpaces their supply
  
  
• The expectations of the population in regard to
  their quality and assortment, outpaces the
  supply
  
• Social differentiation, accompanying the
  transition to a market economy, creates a
  category of persons ready to pay for social
  services
• Opportunities exist for reallocation of a part of
  the staff, made redundant in the education and
  healthcare sectors (who have qualifications and
  professional experience) towards the sector of
  social support and services
• There is a regulatory framework for
  public-private partnerships and for provision of
  certain services under contract, incl. through
  development of social entrepreneurship
• All these lead to the necessity to develop
  specialized modules for lifelong learning in
  social entrepreneurship, oriented towards
  potential beneficiaries (specialists made
  redundant in education and healthcare).

45
V. Labor Market Situation in the Education,
Healthcare and Social Services Sectors

• Labour Market Situation
• Employment in Education, Healthcare and Social
  Services Sectors
  
• Persons, Dismissed from Education and Healthcare
• Labour demand in Education and Healthcare Sectors

46
Labour Market Situation

• The economic activity of the population is
  increasing, although it still remains under 50
  and in this sense it is clearly below the level
  of EU-15.
• At the same time it should be noted that economic
  activity among women is a full 11 percentage
  points below that of men.

47
Labour Market Situation

• There is an increase in the employment rate.
  However, the employment growth among women was
  slower than that among men.
  
• Employment in the aggregate services sector has
  increased and reaches 57.1 in 2004. There the
  relative share of employed women exceeded by 13
  the share of men.

48
Labour Market Situation

• In regard to the employment status of
  employer/self-employed - the trends outlined
  above are manifested more distinctly. The number
  of women-employers is nearly 3 times less than
  that of men-employers.
• Similarly, self-employed women are about half the
  number of self-employed men.

49
Labour Market Situation

• During the last few years labour demand has
  become more active. The growth of registered
  vacancies in 2004 is by 14.6 higher than that in
  2003. This can be explained by the fact that
  primary market has become more active.
• At the same time, the government programs of the
  type from unemployment to occupation had a
  sizable contribution to the dynamics of labour
  demand, as well as the increased seasonal
  employment.

50
Employment in Education, Healthcare and Social
Services Sectors

• About 12 of the total number of employed are
  hired in these sectors they accounted for about
  5.2 of all employed men and for 20 of employed
  women.
• The predominating number of women, hired in these
  sectors, is a typical phenomenon. More than ¾ of
  all employed in education and healthcare are
  women.
• The relative share of women in the total number
  of the employed in education reaches 78.3, and
  in healthcare and social services is 75.8.

51
Persons, Dismissed from Education and Healthcare

• During 2004, 52.6 of the registered unemployed
  are women. The share of the long-term unemployed
  women constituted 55 of their total number.
  
• 3 of the registered unemployed are from the
  education sector, out of whom 76.8 are women.
  
• 1.5 of the registered unemployed are from the
  healthcare sector, out of whom 78.2 are women.

52
Persons, Dismissed from Education and Healthcare

• Out of the total number of the registered
  unemployed women from the education sector, 56.1
  are from the age group of up to 39 years, and
  34.4 are from the age group 25-34 years.
• From the Healthcare sector 40.6 are from the age
  group of up to 39 years, and 37.3 are from the
  age group 45-54 years.

53
Labour demand in Education and Healthcare Sectors

• Out of the total number of the registered
  vacancies at the EA during 2004, 6.3 are for the
  education sector and 4.6 for the healthcare and
  social services sector. Most of them have been
  filled during the year.
• The number of vacancies in education and in
  healthcare, however, is much less than that of
  the unemployed from these sectors.

54
Labour demand in Education and Healthcare Sectors

• The results from the focus-group study show a
  negative attitude towards women (qualified and
  experienced in these sectors) referred by
  Employment offices. The participants in group
  discussions stated that the employers viewed them
  as second class persons.
• Despite that, a significant number of the
  participants in the focus-groups are actively
  searching for a job.

55
Labour demand in Education and Healthcare Sectors

• Obviously, women dismissed from education and
  healthcare are vulnerable on the labor market.
  Their employment reintegration would require
  specific efforts and an approach, tailored to
  their educational and socio-demographic profile.
  In this regard the development of skills for
  social entrepreneurship might create additional
  opportunities.
• The participants in discussions declared a
  readiness to initiate provision of services in
  their professional area.

56
Conclusions

• Female employment rate is lower than that of
  male
  
• The education and healthcare and social services
  sectors are typical for women employment
  
• The share of unemployed women from these sectors
  is high
  
• Labour demand is low and a high percentage of it
  is due to specialized programmes
  
• There are disparities between labour demand and
  supply for education and healthcare sectors
  
• Women dismissed from these spheres are one of the
  risk groups on the labor market
  
• From the point of view of professional,
  educational and qualification, and social and
  demographic characteristics of those dismissed
  from these spheres, social entrepreneurship would
  be a good alternative
• Unemployed teachers and nurses (focus-group
  participants) positively view the ideas of social
  entrepreneurship and the opportunity to develop
  their own initiatives in the sphere of social
  services.

57
Existing Training and Re-qualification Plans for
Pedagogues and Paramedical Staff in Social Work

• Training and re-qualification of primary school
  pedagogues and paramedical staff in Bulgaria is
  conducted by BA and MA programs in social work,
  social and healthcare management, by a number of
  higher educational institutions.
• Training also takes place in the form of courses,
  organized by Employment offices and licensed
  training centers. The course content is
  determined by the type of centrally financed
  re-qualification programs. In 2004 programs were
  launched for Social Assistants and Teachers of
  Disabled Children. The offered courses, however,
  do not always match the qualification and
  attitudes of unemployed women.

58
Existing Training and Re-qualification Plans for
Pedagogues and Paramedical Staff in Social Work

• In 2003 and 2004 the MLSP finances a project,
  entitled Encouragement of Own Economic Activity
  of Women for Providing Services in Raising
  Children, aimed at primary school pedagogues and
  paramedical staff. The training program includes
  the following main modules motivation,
  management of a company and a specialized
  subject.

59
Existing Training and Re-qualification Plans for
Pedagogues and Paramedical Staff in Social Work

• The curricula at the universities put the accent
  on pedagogical and psychological consulting
  specialized medical and social issues of social
  care and work organizational and managerial
  aspects of social activity.
• In some cases the curricula also offer economic
  and managerial subjects. In our opinion, the
  topics are not sufficient for the formation of an
  entrepreneurial culture and attitudes.

60
Existing Training and Re-qualification Plans for
Pedagogues and Paramedical Staff in Social Work

• The existing wide range of offered programmes
  creates preconditions for reintegration of the
  dismissed teachers (women) and nurses in the
  social sector.
• The training in social work at this stage still
  does not recognize fully the necessity of
  profound entrepreneurial and managerial training
  of those who practice the activity social work.

61
Conclusions

• A network of higher education institutions
  exists, which train specialists in the sphere of
  social services. They are capable of responding
  to the needs for re-qualification of persons,
  dismissed from healthcare and education sectors
• The share of unemployed women, dismissed from
  education and healthcare, who attend MA programs,
  continues to be low
  
• The contents of the offered modules are oriented
  towards the management of establishments,
  existing in the social sphere. The modules,
  driving towards the launch of ones own business
  and self-employment, are underestimated there is
  almost a complete absence from the curricula of
  subjects such as entrepreneurship small and
  medium-sized business, etc.
• It is expected that an improved coordination
  between universities, regional employment
  services, local authorities and social partners,
  would improve the quality of training curricula.