Berlin Development Agency for Social Enterprises and Neighbourhood Economy – BEST

1. Berlin Development Agency for Social Enterprises and Neighbourhood Economy – BEST Dipl. Ing. Heike Birkhölzer Technologie-Netzwerk Berlin e.V. „The European Perspectives in Social Economy Research“ Gdynia, 25.06.2008

2. Aims and approaches The aim of BEST is to develop a community economic strategy for the neighbourhood, basically by implementing social enterprises The approach is to create new additional jobs by setting up social enterprises, facilitated by the intermediary work of BEST operating at local level, meeting local needs and using local resources

3. Context 2000 : Foundation of the Network for Social Enterprises and Neighbourhood Economy, Berlin (NEST), 2002: BEST was set up in the framework of the ESF Art. 6 - Programme and the ‘ Social City‘ Programme of the Länder 2004 and the Government as a pilot project 2005 : Implementation of BEST in the (large) district of Berlin - Pankow 2007: (ERDF– Wirtschaftsdienliche Maßnahmen) 2007: Foundation of the BEST Association for the promotion of the BEST approach

4. Social Enterprises Social enterprises are characterized as follows They are: • pursuing social aims through economic activities; • not-for-private-profit-distributing: surpluses are re-invested for the stated social aims; • operating for the benefit of a social target group or a local community. • organized alongside cooperative principles

5. Advantages of Social Enterprises Social Enterprises • reduce the risks of bankruptcy because they are set up collectively; • are able, as multi-stakeholder-enterprises,to attract external resources; • are able, as holdings, to cover various needs existing in the local neighbourhoods.

6. What we are doing Mobilizing Method of analysis and action: Support to carrying out... • Deficit analyses / Development of an Ideas and -Resources Pool • Resources analyses / local forums • Feasibility studies / Installing founders‘ initiatives • Social Enterprise (Business) Planning / Setting up of social and / or community enterprises

7. Steps to set up social enterprises To set up a social enterprise works differently than to set up traditional enterprises • mobilising people willing to set up a social enterprise in a local area / building social capital • build up working groups and structures (an organisational nucleus) • set up social enterprises f. e. associations founded • defining business fields and starting with business activities • developing business fields and produce business plans • Acquisition of contracts and capital • Formalising social enterprises f.e. as community holdings

8. Professional Training of people setting up a social enterprises, managers and staff • Economic functioning / working of social enterprises • Cooperation & Networking • Building social capital • Accounting • Financing • Legal forms and structures of social enterprises

9. Outcome in the district of Pankow (2005 – 2007) – Numbers and facts Number of enterprises involved: directly: 50 indirectly:150 (local network of social enterprises) Number of social Enterprises founded: 20 additional social enterprises Jobs : 44 (additional and sustainable) Side benefits: 8 persons found jobs in the traditional economy Decrease of empty shops Setting up networks of social enterprises Promotingthe social economy in the district of Pankow and Berlin

10. Conclusions National and regional authorities have a key role in supporting the Social Economy: Financial support for the provision of support, consultation and training for social enterprises Visibility of the social economy has to be enhanced Labour market measures are not adapted to the needs of social enterprises Public procurement should be opened up for social enterprises The public sector should support founders’ initiatives in acquiring premises and seed capital

11. For more information:www.soziale-oekonomie.dewww.technet-berlin.de