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This presentation is an intro to legal, financial, social impact assessment frameworks of social entrepreneurship/ social enterprises as part of the "Social Innovation in Practice" workshop hold during "The Impact Series" http://theimpactseries.com. This series digs deep into the field of social entrepreneurship, while pointing out the social role of science. We will feature a diverse collection of speakers who will share their knowledge, expertise and experience in that field and bring attention to how to turn science in the service of solving the world’s most pressing societal challenges.
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SOCENT THEORY & PRAXIS
WHAT IS A SOCIAL VENTURE?
• Social enterprises are social mission driven organizations which apply market-based strategies to achieve a social purpose.
• Using the power of business for social good (Change.org)
• Positioned between public and private sector.
SOCIAL ENTERPRISE
CHARACTERISTICS*
• It directly addresses an intractable social need and serves the common good, either through its products and services or through the number of disadvantaged people it employs.
• Its commercial activity is a strong revenue driver, whether a significant earned income stream within a nonprofit’s mixed revenue portfolio, or a for profit enterprise.
• The common good is its primary purpose, literally “baked into” the organization’s DNA, and trumping all others.
*Social Enterprise Alliance
LEGAL FRAMEWORKS
LEGAL STRUCTURES EUROPE
•Various legal forms inside the national legal systems. Primarily not-for-profit, but not restricted to that e.g. associations, cooperatives etc.
•Associations are common in France, Belgium
•Cooperatives are more common Northern Europe, Italy, Austria, Germany, Sweden
•1990s creation of new legal forms -> Social Cooperative
European Commission Guide Vol.4
LEGAL FRAMEWORK IN GREECE
• Law on Social Economy 4019/2011 establishes the form of Social Cooperative Enterprise
• Summer 2013: Informal Network of Social Cooperative Enterprises (around 240 Soc. Coops.)
• Other legal forms of Social Economy in Greece: Grassroots, Informal Structures, Cooperatives, Non-Profits, Associations etc.
IMPACT OF SOCIAL ENTERPRISES IN EUROPE
IMPACT IN NUMBERS
14.5 million paid employees = 6.5% working population
Social economy and soc ia l entrepreneurship I 47
Social economy organisations by country (Top 10)
United Kingdom875 555
Germany513 727
Other countries434 804
Hungary61 024
Poland94 945
Italy97 699
Czech Republic10 1785
Austria118 475
Finland134 490
France192 497
Spain200 768
*Data from Ciriec International (2012), ‘The Social Economy in the European Union’.
When looking at the different types of organisation of the social economy we see that most of them have been estab-lished as associations, foundations and other similar forms: if we include both paid and voluntary work, they comprise about 65 % of the employment in Europe’s social economy.
Across Europe agricultural cooperatives have an aggregate market share of about 60 per cent in the processing and market-ing of agricultural commodities and an estimated 50 per cent share in the supply of inputs. Europe has about 4 200 credit cooperative banks with 63 000 branches.
These cooperative banks have 50 million members (about 10 per cent of the EU’s population), 181 million clients, 780 000 employees, !5.65 trillion in assets, and an average market share of about 20 per cent. Concerning the European retail sector, 3 200 consumer cooperatives employ 400 000 people and have 29 million members, 36 000 points of sale, and !73 billion of turnover. Cooperatives also protect the jobs of hundreds of thousands of farmers and small entrepreneurs that manage to stay in business thanks to the economies of scale that cooperatives provide.
SOCIAL FINANCE
• Ethical/ Social/ Impact Investment
• Cooperative Banks/ Social Banks
• Foundations
• Microfinance
• Crowdfunding - EC launched a public consultation for policy framework just Oct.3
• Local or community currencies
SOCIAL INVESTMENT LANDSCAPE
SOCIAL IMPACT ASSESSMENT
SOCIAL IMPACT
• Input• Activities• Output• Outcomes• Goal Alignment
SOCIAL IMPACT EXAMPLES
• Output: Changes in attitudes, behaviors, skills etc.
• Outcome: Measurable results e.g. units of housing, people employed etc.
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SOCIAL IMPACT = SOCIAL VALUE CREATION =
MEASURE OF CHANGE
SOCIAL IMPACT ASSESSMENT
Tools of social science, program evaluation, business practice.
•Analysis
•Monitor
•Managing
•Direct or indirect social effects
SOCIAL IMPACT ASSESSMENT
SOCIAL IMPACT ASSESSMENT
SOCIAL IMPACT ASSESSMENT
• Theory of Change
• Apparent effectiveness -> Data
• Demonstrated effectiveness -> Systemic
• Proven effectiveness -> Research Design
THEORY OF CHANGE
• Understanding by stakeholders of the process that will generate social impact.
• Relationship between actions, short-term outcomes and long-term outcomes.
