concepts, historical overview

1. Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship” Bratislava · 4 December 2009 concepts, historical overview

2. Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship”, Bratislava · 4 December 2009 1. Conceptual clarification VARIOUS OVERLAPPING DEFINITIONS > ORGANIZATIONS > SECTORS • Non-profit sector: US influence, widely used in the early transition. It excludes cooperatives on the ground that they can distribute profits to a certain extent. • Social economy: recent use, esp. In recently especially in Central European Countries. French influence and accepted at the EU level. • Third sector: mainly used in the scientific literature. • Non Governmental Organizations (NGOs): widely used in the region, it replaced the historically compromised concept of “social organization”. It refers to associations and voluntary organizations. • Civil Society Organizations (CSOs): very broad and widely used.

3. Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship”, Bratislava · 4 December 2009 1. Conceptual clarification CONCEPTS USED Third sector = other than public and traditional for-profit organizations (e.g. associations, foundations, cooperatives) Social enterprise = new dynamic of both traditional (e.g. associations) and newly established organizations (e.g. public benefit companies, social cooperatives)

4. Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship”, Bratislava · 4 December 2009 1. Conceptual clarification Associations/Foundations increasingly engaged in the production of services Social Enterprise Co-operatives engaged in the production of general-interest services for non-members

5. Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship”, Bratislava · 4 December 2009 2. Defining social enterprise WHY A SHARED “WORKING” DEFINTION? • Effectiveness and efficiency • Impact (clarity of message) • Research and learning • It can be improved! Different organizational models and legal forms co-exist under that definition

6. Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship”, Bratislava · 4 December 2009 2. Defining social enterprise THE SOCIAL ENTERPRISE CONCEPT Institutional arrangement explicitly aimed at pursuing a social goal through the carrying out of economic activities in a stable and continuos way • Ownership rights assigned to stakeholders other than investors (consumers, workers, donors, community) • Profits gained bound to a distribution constraint • Governance model promotes participation of stakeholders and democratic management

7. Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship”, Bratislava · 4 December 2009 2. Defining social enterprise A WORKING DEFINITION OF SOCIAL ENTERPRISE Social enterprises are autonomous private organizations providing goods or services with the explicit aim to benefit the community. They are limited in profit distribution and tend to involve various types of stakeholders in their governing bodies.

8. Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship”, Bratislava · 4 December 2009 3. The appearance of the notion of social enterprise UNITED STATES: SUPPORT PROVIDED BY FOUNDATIONS TO SOCIAL ENTREPRENEURSHIP 1980s - Bill Drayton & Ashoka to support the vocations of individuals having both the enthusiasm and the passion of entrepreneurs and the awareness of committed activists 1990s - Harvard University: launching of the “Social Enterprise Initiative” (trainings, support) in 1993 and of the “Social Enterprise Knowledge Network” (SEKN) in 2001 (university network) • “Any business strategy or activity carried out by an NPO to generate income supporting its social mission” (Social Enterprise Alliance, 2002) • “Any form of enterprise in the framework of an NPO, a business company or entities from the public sector, carrying out an activity with a significant social value or producing goods or services having by themselves a social aim” (SEKN)  Partial confusion with “corporate social responsibility”

9. Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship”, Bratislava · 4 December 2009 3. The appearance of the notion of social enterprise ITALY: SOCIAL ENTEPRISES AS “BOTTOM-UP” INSTITUTIONAL ARRANGEMENTS • Withdrawal of the state from some social services • Power of large co-operative federations • Launching of the “Impresa Sociale” journal in 1990 • Law of 1991 creating the legal form of “social solidarity co-operative” · A-type social co-operatives: social services co-operatives · B-type social co-operatives: work integration social co-operatives • End of 2004: 7,100 social co-operatives with 223,000 jobs (of which 24,000 work integration jobs in B-type social co-operatives) and mobilising 31,000 voluntary workers. A “co-operative” (collective) conception of the social enterprise

10. Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship”, Bratislava · 4 December 2009 3. The appearance of the notion of social enterprise THE UK:A TOP-DOWN INSTITUTIONAL ARRANGEMENT VIA THE CREATION OF QUASI-MARKETS • CONSUMERISM as solution to fill the gap in the provision of social services (compulsory competitive tendering and the contracting out of services to a plurality of providers) • Increase in public expenditure, low quality of services, and worsening of working conditions • From 2002 on: tools of the British government strategy: “Social Enterprise Unit”, training programmes, “Social Enterprise Coalition”, evaluation reports, etc.  A more “market-oriented” approach to SE • For 88% of social enterprises, more than 50% of their resources originate in the sale of goods and services • ± 15,000 social enterprises registered as “companies with limited guarantee” or as “industrial and provident societies” (no “charities”)

11. Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship”, Bratislava · 4 December 2009 3. The appearance of the notion of social enterprise EMES: THE EMERGENCE OF SOCIAL ENTERPRISE IN EUROPE • The EMES Project on the emergence of social enterprise in Europe (1996-1999). • Proposal of a European approach to the social enterprise • European overview of social enterprises The PERSE Project on the socio-economic performance of social enterprises in the field of work-integration (2001-2004). ·European overview of WISEs Study on Promoting the Role of Social Enterprises in the CEE and CIS(2005-2007). · Overview of social enterprise in 13 CEE and CIS countries and 3 in-depth analyses · Working definition of social enterprise adapted for transition economies WISE Project, WISEs as tools for promoting inclusion (2007-2009). · Guidelines for the support of WISEs at the EU level

12. Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship”, Bratislava · 4 December 2009 • For a historical overview and a comparative discussion on conceptions of social enterprise, see: • “Social enterprise in Europe: Recent trends and developments”(2008) by Jacques Defourny and Marthe Nyssens, EMES Working Paper n. 08/01 (downloadable at www.emes.net) • “Social enterprise: An international overview of its conceptual evolution and legal implementation” (2009) by Giulia Galera and Carlo Borzaga, Social Enterprise Journal, Vol. 5, Issue 3, pp.210 –228.