1. Social Entrepreneurship in Bulgaria - Labour Market Integration of the Vulnerable Teodora Demireva (Member of GECES & GECES – Subgroup) Ministry of Labor and Social Policy of Bulgaria

2. Why Social Entrepreneurship (1)  Introduction of theoretical and practical aspects of the social economy and social entrepreneurship concepts that are relatively new in Bulgaria.  Raising demand to social economy and entrepreneurship opportunities due to the potential to generate jobs and be a means for overriding poverty and social exclusion.  Highlighting social advantages through social inclusion by employment of disadvantaged individuals.  Contribution to the national economy – saving budgetary transfers for social protection including those related to long- term unemployment. Generating tax revenues as a ratio of GDP.

3. Why Social Entrepreneurship (2)  Supporting economic and social development, generating employment and reducing poverty; covering a part of the social protection network.  Bringing together business efficiency and social solidarity (e.g. EU member-states owe roughly 12-18% of the employment rate and 12-14% of GDP to SE).  Introducing entrepreneurial features in services (social cares, vocational training, certain medical treatment); improving living standards of disadvantaged persons, overcoming their marginalization.  Launching a "different entrepreneurial approach" – the driver is not merely the profit but protection against social disadvantages.

4. The European Political Context (1) EUROPE 2020 - A strategy for smart, sustainable and inclusive growth  A key concept in the strategy "Europe 2020" is inclusive growth by focusing efforts and resources to combat poverty and social exclusion through the development of labor markets, including under crisis conditions.  The Strategy is based on 3 interlinked thematic priorities, 5 headline targets and 7 flagship initiatives. Social economy is related to every element of the functional structure of the Strategy, but it is directly meant under Priority 3 "Inclusive growth – fostering a high-employment economy delivering economic, social and territorial cohesion."

5. The European Political Context (2)  Social Business Initiative - Creating a favorable climate for social enterprises, key stakeholders in the social economy and innovation (2011);  Single Market Act I: Twelve levers to boost growth and strengthen confidence "Working together to create new growth“: Lever 8 - Social entrepreneurship  Single Market Act II: Together for new growth: Key action 12: Give all EU citizens access to a basic payment account, ensure bank account fees are transparent and comparable, and make switching bank accounts easier.  Regulation on European Social Entrepreneurship Funds (EuSEF)  Programme for Social Change and Innovation  General Block Exemption Regulation (GBER)17

6. The National Framework - The National Social Economy Concept  Vision The vision of the Government is to establish an operational SE- Sector, contributing to pro-active inclusion of vulnerable groups, flexible and stable employment, enhanced territoral cohesion.  The Concept’s objectives: Enable introduction of indicators for identification of SE-entities; Launch development of norms, supporting SE-development and helping stake-holders to widespread and apply the spirit of social economy. Streamline legal and administrative environment for development of SE-entities (access to financing, social provisions in public procurement, tax-alleviation, etc.) http://seconomy.mlsp.government.bg

7. Main Features of Social Enterprises  They are doing business  Not the profit but the social mission is the primary aim of the activities  They reinvest the profit (how much?) for the social purposes of the organization  Democratic membership

8. Main Effects of Social Enterprises  Generating employment, job creation  Manifested social effect of their activity; social inclusion of disadvantaged groups  Satisfying the specific needs in the community  Introduction of social innovations (production of goods and services for vulnerable groups; use and introduction of innovative ways for production of goods and services)  Creation of social added value

9. Fundraising EU – Bulgaria  ESF “Human Resources Development” Operational Programme; Priority axis 5: Social inclusion and promotion of social economy;  ERDF Operational Programme "Development of the Competitiveness of the Bulgarian Economy"  The Government EU  ESF  ERDF  Regulation on European Social Entrepreneurship Funds (EuSEF)  Programme for Social Change and Innovation  Social Stock Exchanges in Europe

10. Financed Operations Under OP "Human Resources Development" (1)  “Social entrepreneurship – promotion and support of social enterprises“: Components: -Support for development of the existing social enterprises -11 -Support for the creation of new social enterprises - 36 Aim - development of the social economy and creation of social capital by  supporting ideas for employment, recovery of work habits, skills for independence for people at risk trough  production of specific goods and services and their marketing

11. Financed Operations Under OP "Human Resources Development" (1)  Beneficiaries  34 social service providers,  11 municipalities  1 beneficiary is cooperation  2694 people from disadvantaged groups Persons with Disabilities - 1090; Individuals from minority groups - 442; Single parents, mothers with 3 or more children- 190; Long-term unemployed - 613; Persons leaving specialized institutions - 199; Children deprived of parental care - 70; Former prisoners - 52; Persons suffering from various addictions - 10; Other disadvantaged persons - 46.  Established social enterprises Services in the home and garden; Art - workshop Workshop for Applied Art Support Centers for disadvantaged people Social Service Agency Nursery Car wash Information Center Labour office

12. Financed Operations Under OP "Human Resources Development" (2)  “New Opportunities” Component : - Support for the creation of new social enterprises (to municipalities) Established social enterprises:  Public laundry  Social meals  Social Enterprises for development and improving the environment in the municipalities  Social enterprises to carry out technical activities in support of the municipal administration  Social enterprises for Traditional Bulgarian souvenirs 567 persons at risk employed and 198 persons - staff in social enterprises.

13. Financed Operations Under OP "Human Resources Development" (3)  “Chance for all” Aim - social inclusion of people with disabilities by  supporting specialized enterprises and cooperatives for people with disabilities to provide training to acquire or upgrade vocational training and employment for people with disabilities. 344 trained and employed people with disabilities

14. Financed Operations Under OP "Human Resources Development" (4)  “Help at Home” Aim – creation of sustainable model for provision of services at home for people who are in partial or complete inability to take care of themselves Established social enterprises - Municipal enterprises or municipal bodies, private entities or subsidiaries established in accordance with applicable law Target groups: Unemployed persons People with disabilities Elderly people Types of hourly activities Activities of personal assistance Activities for social support and inclusion Communal activities

15. Financed Operations Under OP "Human Resources Development" (5)  "Compassion" Aim – promotion and real application of equal opportunity policies and social inclusion of people with disabilities; creation of preconditions for establishing a real and viable models for partnership between government and civil society towards improving the effectiveness of implemented integration policies of people with disabilities. Who is Eligible: National organizations representing people with disabilities and national organizations for people with disabilities Who are the target groups : People with disabilities and their families; Representatives of different communities; Staff in social enterprises, specialized enterprises and cooperatives of people with disabilities.

16. Good Practice Models of social enterprises  Model - supply of paid social services, subsidized social services (Social Assistance Society – Drianovo);  Model of social enterprise – employment of people with disabilities who are social services users– Daily Centre for Handicapped Adults (Patchwork Atelier – Voneshta Voda Village);  Model – subsidizing social services; beekeeping, production of honey and by products (Samaritans Society, Stara Zagora);  Model: part-time employment of women – victims of home violence and subsidizing social services; Laundry Atelier, dwelling and offices cleaning (Open Door Centre – Pleven).

17. Services of the Social Assistance Society of Drianovo  Old Age Daily Centre (capacity - 40 persons)  Home Assistance (coverage - 40 persons)  Social Services Bureau (monthly capacity - 40 persons – recipients of respective social services)  Social Rehabilitation and Integration Centre

18. Old Age Daily Centre Social life – organization of personal events, national celebrations and travels to historical places near Drianovo; hot-kitchen, medical examinations

19. Patchwork Atelier – Voneshta Voda Village  Model social enterprise – employment of people with disabilities who are social service users– Daily Centre for Handicapped Adults;  Structure of the social enterprise, labor-therapeutic facility, facilitated as a patchwork atelier and product sells linked to the Milenium- Foundation;  Production of bedding, baby kits and blankets, gift type products;  Social impact – employment of persons with disabilities, participating in labour therapy programmes. A part of the Daily Centre expenditures are covered by the social enterprise

20. Daily Centre for Old Age Handicapped Daily services for 20 adult persons with disabilities above the age of 18. Facilities for kinesitherapy and rehabilitation, medical examinations, social activities, household activities, arts

21. Patchwork Atelier  The atelier is equipped by up to date sewing and specific ironing.  Special fire-protection equipment to avoid inflammation due to wrongdoing of handicapped staff.

23. Advantages of Running Social Enterprises  For individuals –employment with a social enterprises;  For the local community – SE meet community needs, specifically in small municipalities, they streamline the way to labour markets;  For the state – economic advantages (reducing social transfers), social effect (social inclusion), jobs creation or meeting the need of a service or a product.

24. Thank you! tdemireva@mlsp.government.bg +359 2 980 85 30 +359 2 9118 547