Social entrepreneurship: pathways towards a sustainable and cohesive Europe The Concepts and the EU Policy Agenda

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Social entrepreneurship pathways towards a
sustainable and cohesive EuropeThe Concepts and
the EU Policy Agenda

• Business and Start-Ups Sub-Committee
• Brussels 2015-06-16

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The EESC, social economy and social
entrepreneurship

• Key EU policy expert ? social economy category
  group, GECES member
• Significant expertise and opinion work, such as
• Diverse Forms of Enterprise
• Social Enterprise and Social Entrepreneurship
• Social Business Initiative
• European Funds for Social Entrepreneurship
• Social Impact Measurement
• Social Impact Investment
• Financial Eco-System for Social Enterprises
• The EESC social enterprise project
• Bridging social economy stakeholders and policy
  makers ? local to EU Strasbourg to Luxembourg
• Project report with reflections and
  recommendations
• Networking, communication and dissemination

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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
• Indicating a paradigm shift and need for systemic
  change
• Urgent need to mobilise all resources and
  stakeholders in society

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Social enterprise - a solution, historically and
now

• Feature of the European social model ? smart,
  sustainable and inclusive growth
• Mission to meet unmet needs or tackle
  social/societal issues
• Often members/users and/or general interest
  focused
• Produce social and economic outcomes
• Social cohesion/inclusion and business
  creation/employment
• Play key democracy function ? link to civil
  society creating social capital
• Catalyst for social innovation ? demand-led,
  user-centred, flexible, bottom-up
• Increase diversity and supply of services
• Innovate social (and other) policies
• Proven more resilient but still underdeveloped

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Diversity, but shared concept and characteristics

• Economic and social actors - active across
  sectors
• Primary social mission
• Surplus a means to fulfil social mission ?
  reinvesting
• Inclusive governance ? voluntary and open
  membership and democratic control
• Business and legal models vary due to national
  contexts
• Social economy associations, mutuals,
  cooperatives, foundations
• But social economy also includes new legal forms
  based on shared principles
• Independence from public authorities
• Close link to civil society ? key driver of
  social entrepreneurship
• Mixed revenue streams ? public and private

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The European Commission description

• COM Social Business Initiative (SBI), 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
• Are economic actors producing goods and services
• Is not CSR ? but connections can exist
• Some terms used social economy, social market
  economy, social enterprise, social
  entrepreneurship, civil society enterprise

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Social economy and social enterprise in Europe

• Limited accurate data due to Member State
  diversity
• EU mapping study a step
• Satellite accounts only in 4 MS
• Social economy paid employment 14.5 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
• 20/29 (EU Switzerland) countries have national
  definitions
• 21/29 (EU Switzerland) have no policy framework
  for development

Sources European Commission Social Europe Guide
Vol 4, EESC/Ciriec Study 2012, COM Mapping Study
2014, Third Sector Impact 2015
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EU policy support

• EU2020 ? Single Market Act ? Social Business
  Initiative 2011
• SBI key starting bringing policy areas together
  and key actions
• Funding structural fund priorities, private
  financing
• Visibility social impact measurement, mapping
• Legal environment - public procurement provisions
• Other interesting initiatives
• Strasbourg Declaration
• Rome Strategy letter to Juncker
• EP reports such as Draft report on social
  entrepreneurship and social innovation combating
  unemployment
• EESC opinions
• EESC project findings 2014-2015
• There is a genuine interest but concepts needs to
  be further clarified
• Pieces of ecosystem exist must be in a coherent
  policy framework
• Lack of full MS implementation
• The EU policy continues to play a central role,
  despite national diversity

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To unleash the potential direction from EESC
project

• Political will, ownership and keeping the
  momentum ? launch SBI 2.0 and action plan for
  social economy
• Call on MS to implement at MS/regional/local
  levels ? EU to guide, monitor and support
• Safeguard the concept and recognise the
  specificities and need for tailored support
• Mainstream in enterprise (and other) policies and
  connect policies frameworks
• Develop a tailored eco-system
• Continue building awareness, visibility and
  recognition ? measure social impact, report in
  statistics, research models and added value,
  recognise specificities
• Improve access to markets ? guide to apply
  favourable conditions in public procurement
• Improve access to finance ? hybrid capital, full
  lifecycle
• Launch development and capacity building
  programmes
• Support and facilitate contributions to
  employment
• Promote social entrepreneurship in education at
  all levels

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The future renewed commitment and cooperation

• EESC prioritises and actively engaged
• Final project event July 10
• Opinion financial eco-system September 17
• Continue to disseminate, communicate and support
• Bridging local stakeholders to EU policy
• European Commission
• New team for SBI announced
• Awaiting policy direction and leadership
• GECES continues, EESC observer
• European Parliament
• Intergroup for social economy re-launched
• EU Presidencies
• Italy Rome Strategy
• Latvia Parliamentary Committee
• Luxembourg Presidency priority, event December
  3-4
• The Netherlands

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