CITIZENS WITH A VISION: THE IMPACT OF SOCIAL ENTREPRENEURSHIP

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CITIZENS WITH A VISION THE IMPACT OF SOCIAL
ENTREPRENEURSHIP
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CEPES. Non-profit organisation which gathers and
represents the most relevant Social Economy
institutions in Spain

• Rural development and agricultural co-operatives
• Workers co-operatives
• Consumer co-operatives
• Service co-operatives
• Social insertion companies
• Labour societies
• Sheltered Employment Services
• Foundations
• Co-operative business groups MCC, ASCES

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• Functions
• - The promotion of social economy as well as the
  search for common spaces where alternatives for
  future development and new integrating models can
  be provided, where personal value is considered
  the axis of economical, productive and social
  activity.
• - Territorial sustainable development by means
  of the co-operative formula, so as to generate
  social capital, the engine for economic
  development.

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ASCES is one of CEPES members. It is a non-profit
body which gathers 6 co-operative institutions in
the Valencian Community.

• CONSUM, consumer co-operative with more than
  500,000 members. It is the second biggest
  commercial distribution company in the Valencia
  Region.
• ANECOOP, second degree co-operative with more
  than 98 associated co-operatives, leader in
  commercial distribution of agricultural products
  in Spain and one of the most important at
  European level.
• COARVAL, second degree co-operative which gathers
  170 co-operatives, devoted to the supply of
  agricultural products.

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• GRUPO SOROLLA (SOROLLA GROUP), workers
  co-operative devoted to the construction and
  management of education centres and sports
  facilities.
• FLORIDA Centre de Formació, education centre
  offering university education, management
  programmes, initial, higher and specialised
  vocational training as well as secondary
  education. It also provides career guidance for
  employment and self-employment and carries out
  consultancy and research projects oriented to
  local development. With more than 4,000 students
  per year and about 200 staff, Florida conceives
  lifelong training as a pillar for the correct
  social and professional integration.
• INTERCOOP, second degree co-operative comprising
  226 co-operatives. It supports rural development,
  innovation and territorial transformation of
  inner areas by means of oil and dried fruits
  production.

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Our vision

• How is Social economy contributing to the
  progress of societies
• What is the impact?
• Lack of indicators, then ...
• Present some examples

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What do we understand by Social Economy
entrepreneurship?

• ENTREPRENEURSHIP. Business men and women who have
  chosen a special way of carrying out business
  activity the co-operative model.
• Revisiting The 21st Century Co-operative
  Principles
• A co-operative is an autonomous association of
  people who have gathered in a voluntary way in
  order to satisfy their needs as well as economic,
  social and cultural aspirations by means of a
  joint and democratically-managed venture.

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• Co-peratives are based in self-support,
  self-responsibility, democracy, equality, equity
  and solidarity values.
• The co-operative principles represent a guideline
  for the co-operatives to express their values.

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Specific characteristics of the co-operative
model

• Made jointly with other people, in a voluntary
  way (ICA principles 1 3)
• Based on the force of labour (today in the force
  of knowledge) not on capital (and, if it is
  capital, it is human capital)
• Inter co-operation (6th principle)
• Benefits re-distribution
• Benefits re-investment
• Involvement and commitment with the local
  environment (7th principle)
• Importance of training a certain (fixed by
  law) of benefits are devoted to training (5th
  principle)
• Each and everyone of these elements define the
  Social character of this economic model Social
  Economy

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IDENTIFYING INDICATORS

• 3 EXAMPLES
• AGRICULTURAL CO-OPERATIVES IN THE VALENCIA REGION
• SPANISH CONSUMER CO-OPERATIVES
• EUROPEAN WORKERS CO-OPERATIVES

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AGRICULTURAL CO-OPERATIVES IN THE VALENCIA REGION

• Awareness raised about the value of UNION.
• KNOWLEDGE developed one single producer has a
  more limited knowledge than that of which he is
  participating. Apart from producing fruits or
  vegetables, agricultural co-operatives know about
  joint and participative MARKETING MANAGEMENT.
  participativa.
• Knowledge which adds direct ECONOMIC VALUE to the
  territory.
• VALUE added in terms of SOCIAL CAPITAL
  development of know-how in participative
  management and democracy which have spread to
  other daily life contexts of the society where
  the co-operative is operating.
• Promotion of ENTREPRENEUR SPIRIT in very
  conservative contexts or cultures such as the
  agricultural one.

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• Derived from this social capital generating
  context
• Agricultural co-operatives have constituted as an
  axis around which other services and activities
  have emerged, generating new value to the
  community, beyond the co-operative members.
• E.g. Credit co-operatives, Housing
  co-operatives, education co-operatives,
  co-operative stores.

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CONSUMER CO-OPERATIVES

• Following the principles which inspired their
  creation, consumer co-operatives aim at joining
  efforts of thousands of people wishing to obtain
  quality products. However, they also integrate
  the defence of consumer interests as new products
  or consumption models emerge. Organised consumers
  are able to care for their interest and even to
  anticipate new needs.

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• Beyond supporting saving by generating volume and
  economies of scale, consumer co-operatives imply
  
• Structures created by citizens playing their role
  as consumers. They valorise citizens
  participation in society, giving them the
  capacity to decide and self-manage.
• Consumer empowerment, raising awareness of their
  capacity to influence society.
• Relevant educational role.
• Generation of a certain counterpower to face the
  monopoly of multinational corporations.

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WORKERS CO-OPERATIVES

• Workers co-operatives exist in a variety of
  sectors, thus their differential element with
  regards to other companies is the the fact that
  the VALUE to the ORGANISATION is defined by the
  PERSON, not by the CAPITAL.
• In workers co-operatives 1 member has 1 vote
  surplus is re-distributed according to the
  members work contribution, who are not only
  committed as regards work but also with their
  capital.

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Most relevant elements in terms of social capital
generated

• Raising of an entrepreneur (not salaried)
  business awareness.
• Democratic habits and living together
  co-operative members are used to exercise their
  right to vote in the General Assembly.
• Training in participative management models, team
  work and inter co-operation.
• Importance of Human Capital development
  co-operative Acts in Spain establish that between
  5 to 10 of co-operative benefits must be devoted
  to member training.
• Re-investment, wealth and employment employment
  generation and surplus re-investment are
  indisputable indicators of wealth generation and
  territorial development.
• Social commitment and involvement with the
  community

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Are co-operatives the most appropriate bodies to
carry out economic activities requiring a strong
social commitment? Are these activities to be
carried out by co-operatives?

• Maybe...
• But, most relevant
• The co-operative model for the supply of economic
  activities generates more and better social
  capital than other business models. Social
  Economy institutions, apart from offering a
  product or service, generate DEVELOPMENT.

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• An business model based on people requires human
  growth in order to be fed back.
• Social economy would be the model to opt for if
  new models to increase impact and efficiency in
  social development of countries are sought.
• Social economy is not social because of its
  commitment with the final user or the aim of its
  activities, but also in terms of being an engine
  for social capital.

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SOME QUESTIONS TO THINK ABOUT

• Lack of indicators, we need to identify valid
  ones, but DANGER to focus only on that we could
  measure, forgetting the main question WHAT IS THE
  KEY QUESTION/ASPECTS to contribute to a real and
  SYSTEMATIC CHANGE of societies?
• Not only formal, superficial ? grassroots change
• Not only looking for the direct consequences or
  direct effects but also the unexpected ones
• Long term vision, never on the short term
• We could observe (look trough) the REALITIES that
  are generating SOCIAL CAPITAL,
• What are they doing?
• How are they working?
• Who are involved?

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What is found/said indicators

• Policy influence it has power to spread
  innovation, social change
• Independently replicated it was good
• Long term comittment it deserved,
• Leadership at its sector it reinforced social
  work thinking
• Support to succes it was useful
• More than one entrepreneur ? group ? structure
  (it generates collective value, beyond the
  individual) ASHOKA social entrepreneurs- group
  entrepreneurship-citizen infrastructure
• Indirect added value unexpected (and not even
  pursued) effects of the co-operative model
  apart from being competitive, it genetates
  democratic values. It is important to validate
  these unexpected effects and to have indicators
  in order to consequently pursue these effects
• CECOSESOLA Barquisimeto (Venezuela).

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What is found/said indicators from COOPERATIVES

• Commitment with the PARTICIPANT, not ony with the
  target of its activity, with its environment as
  an engine for the generation of social capital
• Provoques EMPOWERMENT of people as a consumer,
  as a worker, as ... a citizen
• Fosters continuous (lifelong) learning
• Participation as a tool for empowerment and
  democracy rules
• Commitment with the community (involvement in
  local initiatives, look for more than ones
  interest, sharing concerns and acting
  consequently and in a coherent way)
• In a collective way, always plus
• Re-investment and entrepreneurship
• Based on added value from people, human capital,
  it provides some rights, not the funds (financial
  contribution??)

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INDICATORS - MEASURE

• Some reference documents are
• CONSUM Valencian Co-operative social balance
• EQUAL RSEcoop project for the implementation of
  Corporate Social Responsibility in the Catalan
  co-operative context
• EROSKI Foundation, GRI adaptation
• Economic report 10 years of co-operative
  activities in the Valencian Community
• MCC Annual report
• CEPES Annual report

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Thank you!!

• Empar Martínez Bonafé
• emartine_at_florida-uni.es
• www.florida-uni.es
• www.cepes.es
• www.ecsocial.com
• www.grupoasces.com