Role of Social Enterprises in Employment Generation in CEE And The CIS - National Study in Serbia – Marija Babovic

Main findings Social entrepreneurship does exist, despite unfavourable framework. Non-profit sector is dominant. Many organisations depend of donor support. There are new markets. There are new and undiscovered fields

Approach to SEs sector Social context (labor market, institutional and legal framework, economic conditions, profit sector, socio-cultural capital Demand side: Marginalized groups Local community Global society Supply side: Diversity of organizational forms - more embryonic than developed SEs

Vulnerable groups GroupsApproximate sizeUnemployment rate Refugees from Croatia and BiH % Internally displaced persons from Kosovo % Returnees from Western Europeunknown- Persons with disabilities Roma population – % Unemployed older than Different categories of women: with low education, self- supporting mothers, women from rural areas, victims of violence, victims of trafficking unknown-

Present SEs forms Legal and functional criteria Legal form Types Association of citizens- Voluntary organizations - self-help organizations - Religious organizations - Microfinance organizations Cooperative- agricultural cooperatives - women’s cooperatives - social cooperative Limited liability company - SME Agency - Incubator - Spinn off enterprises Joint stock companySpinn off enterprises Vocational enterprises for handicapped

Voluntary organizations 1.self-help organisations incorporating beneficiary group 2.socially (externally) oriented organisations - oriented towards external goals and groups: a)organisations oriented towards strictly defined target group b) organisations oriented towards several target groups or towards general local development

Example of self help organization Massage saloon of Belgrade Association of Blind Persons

Examples of socially oriented organizations Agronetwork Microfins

Cooperatives 1.Agricultural cooperatives 2.Women's cooperatives, created by efforts of women's NGOs 3.Social cooperatives, created to economically and socially integrate extremely marginalized groups of persons with disabilities

Social cooperative “Vivere”

Enterprises for vocational training and employment of persons with disabilities  Protective institutional framework  Small number of succesfull, privatized  Majority faces typical problems of untransformed social sector: –poor management –poor level of training and the lack of motivation of employees –technological obsoleteness –activities that generate operating losses –physical conditions for work not adapted to persons with disability

Social entrepreneurship within forms of enterprises Spin-off enterprises of voluntary organizations SME agencies Business incubators

Main obstacles and potentials Obstacles Unfavourable legal framework Low level of awareness about SEs potentials and posibilities among all stakeholders Prevailing of traditional model of solidarity Low aspirations of profit sector to develop interests in social economy Potentials High level of needs on demand side (marginalized groups) Experienced, flexible, inovative part of third sector

Priorities:  Creating more favorable legal framework  Promoting SEs among third sector organizations with adequate potential – focusing mostly on organizations that can directly employ members of vulnerable groups  Spreading information on good practices among profit sector, third sector, state actors, local communities and general public