1. 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 

2. 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

3. 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

4. Social Economy and Social Enterprise in Europe
Limited accurate data due to Member State diversity  EU mapping study
Social economy paid employment 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

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