Transcript Diapozitiv 1 - Regional Cooperation Council

What kind of Social Agenda for the Western Balkans?
SOCIAL ENTREPRENEURSHIP
HEART OF EU SOCIAL
INNOVATION AGENDA
Msc Zdenka M. Kovač
NOVUM, Institute for strategic aplicative
research,Ljubljana
Sarajevo, 25-26 May, 2011
AT
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

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
THREE DEVELOPMENT PRIORITIES FOR EU
 Smart
growth
 Sustainable growth
 Inclusive growth
5 TARGETS FOR THE EU IN 2020
1. Employment

75% of the 20-64 year-olds to be employed
2. R&D / innovation
 3% of the EU's GDP (public and private combined) to be invested in
R&D/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 30-34–year-olds completing third level
education
5. Poverty / social exclusion
 at least 20 million fewer people in or at risk of poverty and
social exclusion
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 lowskilled people and legal migrants
 better educational attainment – in particular:
– reducing school drop-out rates below 10%
– at least 40% of 30-34–year-olds completing third
level education (or equivalent)
 at least 20 million fewer people in or at risk of
poverty and social exclusion
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

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!
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 (CSO’s)
 It is about skills innovation, regional/local
governance innovation, eco-innovation……..
It is about transformation of social transfers
policies into social investment policies!

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!

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)
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

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 like:social 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

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:
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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 skill’s pool for managers of
social enterprises
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!
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!

LAW ON SOCIAL ETREPRENURSHIP


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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:
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
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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
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!

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!

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.

NETWORKING FOR SOCIAL
ENTREPRENEURSHIP IN THE REGION
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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!
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.
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!