LITHUANIAN RURAL PARLIAMENT April 24, 2015 Concepts of Social Economy and Social Social Enterprise – The EESC Social Enterprise Project LITHUANIAN RURAL PARLIAMENT April 24, 2015 

The EESC and Social Enterprise Actively engaged in the Institutional Social Enterprise Agenda EESC key EU Policy Expert  social economy category group, GECES member Significant expertise and opinion work, such as Current EESC Social Enterprise Project Bridging social economy stakeholders and policy makers  local to EU levels Project report with reflections and recommendations Networking, communication and dissemination to policy makers

The backdrop - a new societal landscape emerging Aftershocks of an unprecedented crisis Facing complex societal challenges  globalisation, demographic development, climate change, migration… New social risks emerging  widening inequality gaps, social exclusion, poverty, unemployment… Urgent need to mobilise all resources and stakeholders in society The Social Economy… Proven success in exist of crisis Feature of European social market economy model

Social Economy and Social Enterprise in Europe Limited accurate data due to Member State diversity  EU mapping study Social economy paid employment 14.5+ million 2012 (vs. 11 in 2008) 6.5% of the working population of the EU In Belgium, Italy, France, Spain and the Netherlands accounts for between 9%-11.5% of working population 75% of social enterprise active in: Social services, employment and training, environment, education and community development Source: European Commission “Social Europe Guide Vol 4” and EESC/Ciriec Study 2012

Social Economy – the concept Economic and social actors - active across sectors Models vary based on national contexts = associations, mutuals, cooperatives, foundations Include new legal forms based on shared principles Shares key characteristics: social objective over capital surplus is a means to fulfil social mission not voluntary and open membership and democratic control members/users and/or the general interest focused principle of solidarity and responsibility independence from public authorities

The European Commission description COM Social Business Initiative (2011): the social/societal objective primary reason for the commercial activity profits are mainly reinvested towards the social objective the method of organisation or ownership system reflects its mission Thus are enterprises: providing social services and/or goods and services to vulnerable persons with a method of production of goods or services with a social objective Further, Social enterprises are part of the social economy Are economic actors producing goods and services Is not CSR  but connections can exist

Some key points on the concept European Commission mapping study 2014: Small but growing recognition – tackling societal challenges Engage in economic activity to achieve social mission to promote inclusive growth Key features: economic activity, social aim, profit limitations, independent, inclusive governance 20/29 (EU + Switzerland) countries have national definitions mixed revenue streams  public and private Drivers of social enterprise activity  1) traditional CS, 2)citizen-led, 3)public sector spin-outs (few) 21/29 (EU + Switzerland) have no policy framework for development EESC project recommendation  Update SBI and implement at MS level

Benefits of Social Economy and Social Enterprise In this new social landscape social enterprises are a solution since: Mission is to meet unmet needs or tackle social/societal issues Catalyst for social innovation  demand-led, user-centred, local, flexible, bottom-up Create social and economic outcomes  social cohesion/inclusion and business creation/employment Models proven more resilient and growing  but still underdeveloped in many Member States Further… Increases diversity and supply of services Innovate social (and other) policies Key democracy function  link to civil society creating social capital

EESC project results – key observations There is a genuine interest in social economy enterprise The description of social enterprises needs to be further clarified Lack of implementation at MS level Parts of the ecosystem exist but must be pieced together and placed within a coherent framework More social impact measurement, include parallel to economic reporting requires training Social entrepreneurship and social innovation policies must be better connected

To unleash the potential - create a tailored eco-system (1) Clear direction based on EESC project finding: Mainstream in enterprise policy  political will, ownership, coherent policy framework Access to finance  hybrid capital, full lifecycle Access to markets apply favourable conditions in public procurement Access to funding  prioritise in EU funding programmes

To unleash the potential - create a tailored eco-system (2) Development and capacity building programmes Awareness, visibility and recognition  measure social impact Supportive legal framework recognising specificities and models Tailored action plans and implementation needed at MS/regional/local levels

Thank you for your attention Follow us on “Social Entrepreneurs – Make It Happen!” http://www.eesc.europa.eu/?i=portal.en.social-entrepreneurship-make-it-happen