Social Entrepreneurship at heart of EU Social Innovation Agenda

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Social Entrepreneurship at heart of EU Social
Innovation Agenda
What kind of Social Agenda for the Western
Balkans?

• Msc Zdenka M. Kovac
• NOVUM, Institute for strategic aplicative
  research,Ljubljana
• Sarajevo, 25-26 May, 2011

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Key topics of presentation

• EU 2020 and SOCIAL INNOVATION
• SOCIAL ENTREPRENEURSHIP IN EU AND OECD
• SOCIAL ENTREPRENEUSHIP IN SLOVENIA
• TOWARDS REGIONAL NETWORKING FOR SOCIAL
  ENTREPRENEURSHIP

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The global crises - opportunity for change

• European societies are facing profound
• economic and social transformation externally
• coused by economic globalisation and climate
• change and internally by demographic pressure
  and social developments!
• The need for Social innovation promoted
  through EU 2020 Agenda, represents EU Commission
  respond

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Three development priorities for EU

• Smart growth
• Sustainable growth
• Inclusive growth

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5 targets for the EU in 2020

• 1. Employment
• 75 of the 20-64 year-olds to be employed
• 2. RD / innovation
• 3 of the EU's GDP (public and private combined)
  to be invested in RD/innovation
• 3. Climate change / energy
• greenhouse gas emissions 20 (or even 30, if the
  conditions are right) lower than 1990
• 20 of energy from renewables
• 20 increase in energy efficiency
• 4. Education and skilling up
• Reducing school drop-out rates below 10
• at least 40 of 30-34year-olds completing third
  level education
• 5. Poverty / social exclusion
• at least 20 million fewer people in or at risk of
  poverty and social exclusion
•  

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Inclusive growth

• To foster economy growth by delivering economic,
  social and territorial cohesion policies with
  following targets
• 75 employment rate for women and men aged 20-64
  by 2020 achieved by getting more people into
  work, especially women, the young, older and
  low-skilled people and legal migrants
• better educational attainment in particular
  reducing school drop-out rates below 10 at
  least 40 of 30-34year-olds completing third
  level education (or equivalent)
• at least 20 million fewer people in or at risk
  of poverty and social exclusion

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How will the EU boost inclusive growth?

• 2 flagship initiatives
• 1. Agenda for new skills and jobs
• for individuals helping people acquire new
  skills, adapt to a changing labour market and
  make successful career shifts
• collectively modernising labour markets to
  raise employment levels, reduce unemployment,
  raise labour productivity and ensuring the
  sustainability of our social models
• 2. European platform against poverty
• ensuring economic, social and territorial
  cohesion
• guaranteeing respect for the fundamental rights
  of people experiencing poverty and social
  exclusion, and enabling them to live in dignity
  and take an active part in society
• mobilising support to help people integrate in
  the communities where they live, get training and
  help to find a job and have access to social
  benefits

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The need for social innovation

• It is becoming evident that exiting economic
  and social development models need innovation
  as existing tools are not sufficient for
  achieving set targets!
• Technological and economic innovations are not
  enough anymore, social innovation is becoming a
  MUST!

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What is social innovation in EU context?

• Social innovation refers to profound changes of
  the way social (prevailingly public!) sector is
  developing and solving social problems
• It is about innovating ways to meet so far unmet
  social needs by innovating all three sectors
  public, private for profit and private non for
  profit (CSOs)
• It is about skills innovation, regional/local
  governance innovation, eco-innovation..
• It is about transformation of social transfers
  policies into social investment policies!

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Social entrepreneurship as key tool for social
innovation Agenda

• Social entrepreneurship though essentiall part of
  so far EU economic model for decades, is now
  becoming the heart of EU Social Innovation
  Agenda
• The research show the main added value of
  social entrepreneurship in its abbility to
  stimulate profound social and economic
  transformation by using entrepreneurial tools
  to meet social objectives!

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Social enterprising

• Social enterprising is thus innovative
  business model to meet both economic and social
  objectives and significantly contribute to
  labour market integration, social inclusion and
  economic development.
• Social Enterprises are in the core of social
  innovation!
• (Noya,OECD 2009)

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Social economy/entrepreneurship in EU

• Social entrepreneurship/social economy in EU
  includes cooperatives, associations, foundations
  , mutuals and more new form of social
  enterprise (limited liability company not
  profit oriented).
• In EU it contributes 10 of GDP and around 11
  million jobs.
• It operates in almost all sectors of economy

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KEY EU Policies to boost Social entrepreneurship

• Social economy since last year is official
  specific part of EU Single Market, defined in
  the new Single Market Act
• To boost its growth EU Commission will
• Further develop EU legal Framework for EU
  cooperatives, associations and foundations
• Promote Social business initiative through
  facilitation of socially innovative corporate
  projects likesocial rating, ethical and
  environmental labeling, revised public
  procurement rules and new regime for social
  investment funds
• Introduce new corporate governance mechanisms
• Design new set of measures within all DGs to
  support socio-economic innovation through social
  enterprising

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Social enterprising in OECD

• In several OECD countries a new social
  entrepreneurs are emerging out of classic for
  profit oriented entrepreneurs like Bill Gates,
  Oprah Winfrey, Jeff Skoll, Jamie Oliver,Bill
  Drayton.
• Social entrepreneurship today represents a
  consolidated and growing trend in most OECD
  countries!
• OECD suggest immidiate policy action through
• facilitation of the development of social
  investment market place to support social
  entrepreneurs
• adoption of evaluation methods such as Social
  Return on Investments
• Development of specific skills pool for
  managers of social enterprises

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Social enterprising in Slovenia (1)
In Slovenia like in all ex-YU countries, all
forms of social economy exists but are
significantly lagging behind EU average,
contributing only about 2-3 to GDP and around
the same percentage of jobs (mainly in agri-
cooperatives, companies and sheltered centres
for disabled) Untill lately this sector was not
recognised as important part of socio-economic
development! Support environment was tottaly
missing!
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Social enterprising in Slovenia (2)

• After 15 years of struggle finnaly in March 2011
  new LAW ON SOCIAL ENTREPRENEURSHIP was adopted,
  promising NEW ERA for Social Economy in
  Slovenia!
• NEW STRATEGY for promotion of social
  enterprising is expected to be adopted by the
  end 2011!
• NEW LAW on workers and social cooperatives is to
  follow new Parliamentary initiative!
• Social enterprising is becoming FLAGSHIP THEME
  in media and through promotion events!

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Law on social etreprenurship

• Introduce definition of social enterpreneurship
  in SLO context
• Introduce open model of social enterprising
  allowing all legal forms from societies, private
  institutes, foundations, mutuals, cooperatives
  and limited liability companies
• they are to follow main principles of social
  enterprising as defined by Law
• market based private initiatiative,
• private ownership,
• governance based on one member one vote (not
  dependant on capital share),
• social and/or environmental objectives,
• profits are reinvested for development of
  enterprise,
• combination of employees and voluntary
  workforce,
• solidarity between members and employees and
  with community

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Law on social entrepreneurship

• Introduce two types of social enterprises
• A- social enterprises delivering general
  social and eco benefits for the community
  through specific products and services. Law
  defines primary sectors where they can operate!
• B- social enterprises with main focus on social
  and work integration of vulnerable groups, status
  and specific support obtained in case of at
  least 40 of placement and jobs created for
  vulnerable groups!

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Specific register and specific policies required

• Law introduce specific registration and
  monitoring proceedures
• Law requires from the governnment within 6
  months after adoption of the Law to deliver
  Strategy and specific policies of various
  ministries to promote social enterprising
• Council for social entrepreneurship comprising
  governmental and nongovernmental members is to be
  set up as main driver and monitoring body!

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Ambitious targets for the Strategy

• Within next 5 years to reduce the GAP betwen EU
  average in terms of jobs created through SE
  sector,
• which means
• Development of support environment for social
  enterprises to create betwen 50 -70.000 new jobs
  in Slovenia within next 5 years.

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Networking for social entrepreneurship in the
region

• Slovenian key SE related actors have started
  developing cooperation with RCC to start
  Networking for Social Enterprising in the region
  facing same transitional mind and policy gaps
  by
• bringing together ongoing fragmented CSO
  networks , organizing them into transparent and
  sustainble mutual learning platform,
• starting cooperation among governments,
  employers and unions in the region focused on
  social enterprise promotion,
• Thus significantly contribute to
• New Social and Economic Agenda in the region!

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First steps towards regional networking

• First concept paper on regional networking
  lounched and well accepted at the international
  conference on social entrepreneurship in
  Ljubljana in April this year
• RCC will follow up with organizing special
  regional meeting on Regional Social Enterprise
  Agenda on 19th of June this year.

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Se for sustainable development of the region

• LET THE SOCIAL ENTERPRISING AND REVITALISATION
  OF COOPERATIVE BUSINESS MODEL BECOME CORE
  INNOVATION OF NEW SOCIAL AGENDA FOR SOUTH EAST
  EUROPE!
• THANK YOU FOR LISTENING!