1. Legislative Framework for Social Entrepreneurship in Slovakia Act on Social Economy and Social Enterprises

2. Chronogram of legal development
1991
2008
2018
SE as an integration enterprise employing disadvantaged people – sheltered workshops
SE as an active labour market policy - FAILED
Work integration for disadvantaged
Interim labour market
Slovak parliament has adopted „Act on Social Economy and Social Enterprises“
In force since May 1st

3. Obstacles of SE development
Incomplete legislation
Missing statistics of third sector activities
Poor mapping of volunteering services
Missing relevant data on social business activities
Emprendimiento social en áreas escasamente pobladas

4. Act on Social Economy and Social Enterprises
prepared by working group:
NGOs
Representatives of universities
People experienced in providing social enterprises
Inspired by several legal forms of EU members

5. Subject of the Act Establishes SE sector Defines SE subjects
Defines social enterprises
Specifies possible financial support for SE
Sets up rules to prevent abusing of provided support

6. SE enviromnent Legal framework Financing Assistance
SE sector in Slovakia
SE enviromnent
Legal framework
Financing
Assistance

7. SE definition
Inspired by EU Regulation № 1296/2013 on an EU Programme for Employment and Social Innovation (EaSI)
No specific legal form is being creating for SE
Instead, generalised definition for subjects (irrespective of their legal form) adhering to conditions of social entrepreneurship is established
Social Impact Enterprise
Elementary conditions
Main goal is not profit but measurable positive social impact
50% of profit has to be reinvested to reach positive social impact („socialization of profit“)
Relevant stakeholders are involved into managing processes

8. Types of social enterprises
Integration Social Enterprise
Positive social impact rests in employees structure
30% disadvantaged out of the total № of employees
30% vulnerable people out of the total № of employees or
40% disadvantaged and vulnerable p. out of the total № of employees
Housing Social Enterprise
Needs complementary regulation as compared to general regulation
Construction or reconstruction of flats or rental of flats to people with monthly income lower than 4x minimum income
At least 70% of flats rented only for costs related to using of the flat
Other types
Focused on wide range of activities such as:
Environmental (recycling, green energy...)
Social and humanitarian aid
Cultural activities

9. Direct state aid Investment aid
equipments, operational and renumeration costs
obligatory combination grants and loans
Compensation aid
renumeration and operational costs
partiallly combination of grants and loans
Demand driving aid
vouchers
public order of services

10. Indirect aid Direct tax relief VAT relief
Remission of a tax on profit on the portion of profit „reinvested“ into declared social aim(s)
VAT relief
lower VAT rate (10%) on products and services provided by SE if the customer/-s is/are:
another SE
final consumers
public authority
Public procurement preference
direct procurement - Low Value Purchase Order
obligatory use of social aspect – 6% of purchases

11. Social Entrepreneurship Institute
SE Institute
SE promotion
Business mentoring
Process guidance
Public procurement assistance

12. Thanks for your attention 