Social Social Entrepreneurship Entrepreneurship

Development Development – Preconditions and Perspectives –– Preconditions and Perspectives –

Miodrag Shrestha,Miodrag Shrestha,

BelgradeBelgrade 2 299.0.022.2012..2012.

StruStruccturture of the e of the prepressentaentationtion

DefinitionsDefinitions Stages in the development of the Stages in the development of the

social entrepreneurshipsocial entrepreneurship Social Entrepreneurship and Social Entrepreneurship and

TelecentersTelecenters Serbia Case StudySerbia Case Study

Definition(s)Definition(s)“A social enterprise is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners.”

Social Enterprise: a Strategy for SuccessDepartment of Trade and Industry, 2002

Definition(s)Definition(s) ““Social Enterprise is an Social Enterprise is an organizationorganization with with

an explicit aim to an explicit aim to benefit the communitybenefit the community, , initiated by a group of citizens and in initiated by a group of citizens and in which the material interest of capital which the material interest of capital investors is subject to limits. They place a investors is subject to limits. They place a high value on their high value on their independenceindependence and on and on economic risk-taking related to ongoing economic risk-taking related to ongoing socio – economic activity.”socio – economic activity.”

(Borzaga and Defourny, 2001)(Borzaga and Defourny, 2001)

Definition(s)Definition(s)Social enterprises are Social enterprises are not-for-profitnot-for-profit private private organizations providing organizations providing goods or servicesgoods or services directly related to their explicit aim to directly related to their explicit aim to benefit benefit the communitythe community. They rely on a . They rely on a collectivecollective dynamic involving various types of dynamic involving various types of stakeholders in their governing bodies, they stakeholders in their governing bodies, they place a high value on their autonomy and place a high value on their autonomy and they bear economic risks linked to their they bear economic risks linked to their activity.activity.

(Defourney and (Defourney and Nyssens)Nyssens)

Main Characteristics of the Main Characteristics of the Social EnterprisesSocial Enterprises

It has both Economic and Social DimensionIt has both Economic and Social Dimension Economic meaning they produces goods and Economic meaning they produces goods and

services; they should be market oriented; they services; they should be market oriented; they bare substantial economic risk; they might be bare substantial economic risk; they might be highly innovative with lots of voluntary work.highly innovative with lots of voluntary work.

Social Enterprises have clear social goal, Social Enterprises have clear social goal, commitment to the community; they are commitment to the community; they are independent and autonomous in their work but independent and autonomous in their work but open for different partnerships; they are not for open for different partnerships; they are not for profit organisations.profit organisations.

Stages in the Development of Stages in the Development of Social EntrepreneurshipSocial Entrepreneurship

We can identify 3 stages of development We can identify 3 stages of development of social entrepreneurship:of social entrepreneurship:

Initial (Pioneering) StageInitial (Pioneering) Stage Institutionalisations StageInstitutionalisations Stage Differentiation (Developed) StageDifferentiation (Developed) Stage

Initial (Pioneering) StageInitial (Pioneering) Stage Bottom – up emergency of social enterprises Bottom – up emergency of social enterprises

in various sectors of interest to the communityin various sectors of interest to the community Not legally regulated (recognized)Not legally regulated (recognized) Operate despite the lack of enabling Operate despite the lack of enabling

institutional and legal environmentsinstitutional and legal environments Low level of networking and no umbrella Low level of networking and no umbrella

organisationorganisation High degree of innovationHigh degree of innovation Strong reliance of voluntary workStrong reliance of voluntary work

Institutionalizations StageInstitutionalizations Stage Social enterprises rely on paid, trained staffSocial enterprises rely on paid, trained staff Grassroots, bottom up social enterprises recognized by Grassroots, bottom up social enterprises recognized by

state and business sectorstate and business sector There are on going discussion on legal framework and There are on going discussion on legal framework and

some policies developedsome policies developed Awareness of social entrepreneurship is widespreadAwareness of social entrepreneurship is widespread There are excellent social enterprises set as an There are excellent social enterprises set as an

exampleexample Networking among social enterprises and other Networking among social enterprises and other

stakeholders is risingstakeholders is rising There are financial instrumentsThere are financial instruments

Differentiation (Developed) Differentiation (Developed) StageStage

Social enterprises are well consolidated organised in the Social enterprises are well consolidated organised in the network(s) and expandingnetwork(s) and expanding

Legal framework is set up and functionsLegal framework is set up and functions There is partnership with state/local and business sectorThere is partnership with state/local and business sector Social enterprises are managed by educated social Social enterprises are managed by educated social

managersmanagers Citizens are aware of social enterprises and support Citizens are aware of social enterprises and support

themthem More financial schemes for the support of social More financial schemes for the support of social

enterprisesenterprises Social enterprises are linking internationally and Social enterprises are linking internationally and

exporting their modelexporting their model

Preconditions for the development Preconditions for the development of the social entrepreneurshipof the social entrepreneurship

Actors (social enterprises, CSOs, government)Actors (social enterprises, CSOs, government) Awareness raising (informative and education)Awareness raising (informative and education) Gradually improvement of the Legal frameworkGradually improvement of the Legal framework Building up of the financial support for the social Building up of the financial support for the social

enterprisesenterprises Promote social enterprises (best examples)Promote social enterprises (best examples) NetworkNetwork Building capacities of the social managersBuilding capacities of the social managers

Social Entrepreneurship Social Entrepreneurship and Telecentersand Telecenters

Where is the connection?Where is the connection?

Telecenters are:Telecenters are: Innovative, Innovative, Community based, Community based, They can be market oriented, They can be market oriented, Have different legal forms,Have different legal forms, They can be Tele – Hub, Community TeleCenterThey can be Tele – Hub, Community TeleCenter

Case Study SerbiaCase Study Serbia

Telecenter :Telecenter : Part of Teledom Association network and Part of Teledom Association network and

strongly connected with one abroad Teledomstrongly connected with one abroad Teledom Head of the Telecenter is very well educated in Head of the Telecenter is very well educated in

economy and computer sciences. economy and computer sciences. Mission: to use modern means of information Mission: to use modern means of information

and communication technologies to contribute to and communication technologies to contribute to the creation of equal opportunities for people the creation of equal opportunities for people from micro communities - especially rural areasfrom micro communities - especially rural areas

The enterprise has extensive product The enterprise has extensive product portfolio categorized in six product groups:portfolio categorized in six product groups:

Providing computer literacy certificatesProviding computer literacy certificates Informal education (both youngsters and adults)Informal education (both youngsters and adults) Entrepreneurship supportEntrepreneurship support Commercial web portalCommercial web portal IT competingIT competing Promoting tolerancePromoting tolerance

- However, some of these initiatives were - However, some of these initiatives were single actions and were not repeated.single actions and were not repeated.

In consultant’s opinion, the areas In consultant’s opinion, the areas that should be further explored and that should be further explored and exploited in social enterprise are:exploited in social enterprise are:

Informal education of both young people and adults Informal education of both young people and adults in areas of computer literacy and personal in areas of computer literacy and personal qualification (European Computer Driving License - qualification (European Computer Driving License - ECDL ECDL

Developing educational materials and utilizing it via Developing educational materials and utilizing it via e – learning, as extension to the first activity. e – learning, as extension to the first activity.

Web portal – business and tourist guide for their Web portal – business and tourist guide for their region. This website has strong potential to become region. This website has strong potential to become tourist and investors guide for the area.tourist and investors guide for the area.

Entrepreneurship support – via different courses/ Entrepreneurship support – via different courses/ training for business planning and fundraising. training for business planning and fundraising.

Informal educationInformal education Multimedia educationMultimedia education IT basic and advanced coursesIT basic and advanced courses Education of countryside tourist service providersEducation of countryside tourist service providers Professional courses in agriculture areaProfessional courses in agriculture area Training for the Trainers in informal educationTraining for the Trainers in informal education Training for the Coordinator of the informal educationTraining for the Coordinator of the informal education Training for IT course leaderTraining for IT course leader Training for the Coordinator of the Teledom Training for the Coordinator of the Teledom Trainings for job huntingTrainings for job hunting Basic EU project proposals courses writingBasic EU project proposals courses writing Best entrepreneurial practice (sales and marketing in Best entrepreneurial practice (sales and marketing in

agricultural business areas)agricultural business areas)

Target customers before / after Target customers before / after interventionintervention

At the beginning, the enterprise targeted At the beginning, the enterprise targeted almost everyone: students, almost everyone: students, unemployed, entrepreneurs, elementary unemployed, entrepreneurs, elementary school pupils, high school pupils etc.school pupils, high school pupils etc.

Now, the company targets several Now, the company targets several target groups: students, high school target groups: students, high school pupils and online population who wants pupils and online population who wants to gain computer literacy or award to gain computer literacy or award diploma.diploma.

Consultant strongly recommended connection Consultant strongly recommended connection with local high school in order to complement with local high school in order to complement official school portfolio with knowledge that official school portfolio with knowledge that Telecenter can provide. Telecenter can provide.

Similar with the local municipality and regional Similar with the local municipality and regional authorities through establishing support for authorities through establishing support for promoting idea of long life learning and promoting idea of long life learning and professional qualification might result in better professional qualification might result in better sales of courses in communitysales of courses in community

Strengths Excellent premisesExcellent computer equipmentRecognized professional qualificationEnergetic leader

WeaknessesNo strategyNo sales forceNo clear Job descriptionsToo broad product portfolio

OpportunitiesChance to develop cooperation with National Employment ServiceChance to develop connections with municipality

ThreatsDecreased interest in professional qualifications.

KEY OBJECTIVESKEY OBJECTIVES

To create optimized product To create optimized product portfolio.portfolio.

To offer complete product To offer complete product portfolio to the market via sales / portfolio to the market via sales / marketing strategy.marketing strategy.

Proposed action planProposed action plan

To create sales strategy and To create sales strategy and action plan.action plan.

To create product portfolioTo create product portfolio To execute sales strategyTo execute sales strategy

Short – term impact (marketing, sales, Short – term impact (marketing, sales, HR, operations etc)HR, operations etc)

Creation of viable product portfolio.Creation of viable product portfolio. Design of sales letter template.Design of sales letter template.

Long – term impact (structure, culture Long – term impact (structure, culture etc)etc)

Changed organizational culture – outward Changed organizational culture – outward oriented rather than self – sufficient. oriented rather than self – sufficient.

Being more responsive to market or Being more responsive to market or community trends.community trends.

Creating more market driven culture.Creating more market driven culture.

RECOMMENDED ACTIONS IN RECOMMENDED ACTIONS IN FUTUREFUTURE

To invest time and other resources in marketing To invest time and other resources in marketing activities.activities.

To develop service that helps National Employment To develop service that helps National Employment Service. The enterprise could sell trainings for Service. The enterprise could sell trainings for entrepreneurs and be supplier of National entrepreneurs and be supplier of National Employment Service in order to promote self-Employment Service in order to promote self-employment. Also, the ECDL certification might be employment. Also, the ECDL certification might be offered via National Employment Service as an asset offered via National Employment Service as an asset for easier employment.for easier employment.

To develop connections with municipality authorities. To develop connections with municipality authorities. To develop connection with local schools and To develop connection with local schools and

neighboring towns / villages.neighboring towns / villages.

Useful linksUseful links

Europe 2020 - Inclusive growth Europe 2020 - Inclusive growth http://ec.europa.eu/europe2020/priorities/inclusivhttp://ec.europa.eu/europe2020/priorities/inclusive-growth/index_en.htme-growth/index_en.htm

DG Enterprise and Industry – Social economy DG Enterprise and Industry – Social economy http://ec.europa.eu/enterprise/policies/sme/promhttp://ec.europa.eu/enterprise/policies/sme/promoting-entrepreneurship/social-economy/index_enoting-entrepreneurship/social-economy/index_en.htm.htm

DG Employment, Social Affairs and Inclusion - DG Employment, Social Affairs and Inclusion - Europe 2020 initiatives Europe 2020 initiatives http://ec.europa.eu/social/main.jsp?http://ec.europa.eu/social/main.jsp?langId=en&catId=956langId=en&catId=956

DG Employment, Social Affairs and DG Employment, Social Affairs and Inclusion - PROGRESS program Inclusion - PROGRESS program http://http://ec.europa.eu/social/main.jsp?langIdec.europa.eu/social/main.jsp?langId==en&catIden&catId=987=987

DG Employment, Social Affairs and DG Employment, Social Affairs and Inclusion - Progress Microfinance Inclusion - Progress Microfinance http://http://ec.europa.eu/social/main.jsp?langIdec.europa.eu/social/main.jsp?langId==en&catIden&catId=836=836

DG Internal Market and Services – DG Internal Market and Services – Social business Social business http://http://ec.europa.eu/internal_market/social_ec.europa.eu/internal_market/social_business/index_en.htmbusiness/index_en.htm

SOCIAL ECONOMY EUROPE http://www.socialeconomy.eu.org/?SOCIAL ECONOMY EUROPE http://www.socialeconomy.eu.org/?lang=enlang=en

CIRIEC study: "The Social Economy in the European Union" (2007)CIRIEC study: "The Social Economy in the European Union" (2007)http://www.socialeconomy.eu.org/spip.php?article420http://www.socialeconomy.eu.org/spip.php?article420

Peer Reviews 2008 - The social economy from the perspective of Peer Reviews 2008 - The social economy from the perspective of active inclusion http://www.peer-review-social-inclusion.eu/peer-active inclusion http://www.peer-review-social-inclusion.eu/peer-reviews/2008/the-social-economy-from-the-perspective-of-active-reviews/2008/the-social-economy-from-the-perspective-of-active-inclusioninclusion

Work Integration Social Enterprises and their role in European Work Integration Social Enterprises and their role in European PoliciesPoliciesNational Cross Cutting Reports National Cross Cutting Reports http://www.isede-net.com/content/social-economy/wise-work-http://www.isede-net.com/content/social-economy/wise-work-integration-social-enterprises-tool-promoting-inclusionintegration-social-enterprises-tool-promoting-inclusion

Social Enterprise: A new model for poverty reduction and Social Enterprise: A new model for poverty reduction and employment generationemployment generationhttp://www.emes.net/fileadmin/emes/PDF_files/News/2008/11.08_Ehttp://www.emes.net/fileadmin/emes/PDF_files/News/2008/11.08_EMES_UNDP_publication.pdfMES_UNDP_publication.pdf

Discussion: Discussion: Questions, Comments, RemarksQuestions, Comments, Remarks

Thank you for your attentionThank you for your attention!!

Miodrag ShresthaMiodrag Shrestha

smiodragsmiodrag@yubc.net@yubc.net

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