Social economy and social innovation – a powerful combination

1. Social economy and social innovation – a powerful combination Oana AILENEI European Comission DG Employment, Social Affairs and Social Inclusion Unit D4

2. European social economy • EU-27: 2 million enterprises and 11 million paid employees • Pioneers in developing new markets and creating new jobs • More resilient to the crisis than the mainstream economy • Vectors of social inclusion and empowerment • Tools for social innovations that deliver better social outcomes

3. Key dimensions of social economy organisations Having primarily social objectivesas opposed to profit objectives, producing social benefits that serve its members and/or the general public. Being primarily not-for-profit, with surpluses principally being reinvested and not being distributed to private shareholders or owners. Having a variety of legal forms and models e.g. cooperatives, mutual societies, associations, foundations, profit or non-profit companies. Being economic operators that produce goods and services of general interest, often with a strong element of social innovation. Operating as independent entities, with a strong element of participation and co-decision (staff, users, members) and democratic governance.

4. Support to social economy is on the EU’s agenda EU 2020 and its flagship initiatives (2010) "Innovation Union" and "Platform Against Poverty and Social Exclusion" make social innovation - and its connected issue social economy – a priority. Social Business Initiative (2011): sets up a policy framework and an action plan at EU level (facilitate the access to finance, raise the visibility and improve the legal framework of social economy enterprises) "Towards a job-rich recovery" communication (2011): step up job creation by encouraging labour demand through promoting and supporting self-employment, social enterprises and business start-ups. Youth Opportunities Initiative (2012-2013): promotes youth employment through a greater use of the ESF to "support schemes for young business starters and social entrepreneurs” and EURES (making it easier for young people to find jobs in another EU country).

5. DG EMPL financial support for social innovation and social economy (2007-2013) • European Social Fund (2007-2013): 6 billion € for social innovativeapproaches(social inclusion, inclusive employment, education and training) • Progress programme (2008-2012): 10 million € for social policyexperiments (36 projectsfinancedfrom 2009 to 2011 focus on the social and professional inclusion of vulnerable groups) • European Progress Microfinance Facility(2010-2013): total of 203 million € (the aim of the microloans is to establish and develop micro-enterprises)

6. Multiannual Financial Framework 2014-2020: growing support for social innovation and social policy experimentations Draft European Social Fund regulation - Proposes to reinforce social innovation and transnational cooperation through an incentive in terms of higher co-funding rate. - It includes a new specific "Investment priority for social economy and social enterprises". Draft regulation for the Programme for Social Change and Innovation - Draws together three current programmes – Progress, EURES and European Progress Microfinance Facility – and extends their coverage - It will have a budget of around 960 million euros for a period of 6 years. 60% will be allocated to the Progress strand. At least 17% of this will be allocated to promoting social policy experimentation.

7. LINKS • Social Business Initiative • http://ec.europa.eu/internal_market/social_business/docs/COM2011_682_en.pdf • European Social Fund • http://ec.europa.eu/esf/home.jsp • Programme for Social Change and Innovation http://ec.europa.eu/social/main.jsp?langId=en&catId=89&newsId=1093 • Progress Microfinance • http://ec.europa.eu/social/main.jsp?langId=en&catId=836 • Current Progress calls for proposals for social experimentation • http://ec.europa.eu/social/main.jsp?catId=630&langId=en