Why Social Enterprise?

Transcription

1 VERN / Zagreb / November 14th 2017 SOCIAL ENTERPRISE SUPPORT SYSTEM IN CROATIA Sonja Vuković Why Social Enterprise? In global world... Unjust distribution of goods, power, wealth... GLOBAL MOVEMENT of people having similar views and ideas how world could function Have Your Say! Sonja Vuković, SLAP, Osijek, Croatia 1

2 What are the Main Causes of Crisis? Economic Social Value Cultural Environmental Political Cause 1: Work and Capital Conflict Wrong baseline Labor as a cost although creating new value Workers investing more (long working hours, innovation, LLL) and getting less Profit belongs only to capital owners (minor % through CSR models goes back to community) Sonja Vuković, SLAP, Osijek, Croatia 2

3 Cause 2: Desicion Making Process Only small number of people (power) make decisions on capital flow, create laws and public opinion ( value system) Personal interests are more important than interests of groups, communities, humanity DO NOT USE FORCE, USE BIGGER HAMMER. Artur Bloch Murphy s Law and Other Reasons Why Things Go Wrong Sonja Vuković, SLAP, Osijek, Croatia 3

4 Cause 3: Crisis of Values Honest and hard work is no longer a value Low level of social cohesion/social capital (trust, readiness to donate and volunteer) Social capital is critical for overcomming the crisis (ref. F. Fukuyama Trust ) Cause 3: Crisis of Values Diffferent View Honest and dedicated work is no longer a value Low level of social cohesion (trust, volunteering, willingness to association) Trust is crucial to overcome the crisis (Francis Fukuyama TRUST ) Sonja Vuković, SLAP, Osijek, Croatia 4

5 Solutions and Challenges New Approach Integrated Sustainable Development Eco-social Economy Partnerships New governance and management models Innovation (social, economic, technological, information ) Sustainable SOCIETY CONCEPT People - Planet - Profit Sustainability - financial, economic, natality, environment, social capital Social Capital respecting social norms, trusting other people, having trust in government and social institutions, creating associations, volunteering and philanthropy) Social Responsibility shared responsibility of public, business and civil sector Sonja Vuković, SLAP, Osijek, Croatia 5

6 Cooperation is an act of joint creation or joint discovery. In the very heart of cooperation is a need to create something, to discover something, to find a solution or a simple human need to do something good. OFFICIAL CROATIAN DEFINITION Social enterprise is a business based on the principles of social, environmental and economic sustainability, in which part of entire profit is invested for the community benefit. (National Strategy for Social Enterprise Development) Sonja Vuković, SLAP, Osijek, Croatia 6

7 National Strategy for SE Development Participative way (44 members of all sectors) Definition, Criteria Goals and Measures funds through ESF Main areas: legislation, education, support system, visibility, funding Programmed within ESF Human Resources Ministry of Labor and Pension Fund (32 mil Eur) Main Criteria: Autonomy Continuous activity producing goods or providing services Entreprenurship / market oriented (25%) Democrating governance Limited profit distribution (25%) Various sources of funding Community benefit Social audit (measuring impact) Sonja Vuković, SLAP, Osijek, Croatia 7

8 Funding priorities: Measure 1: Definion and creation of legal and institutional framework for SE: 17,9 Mil Kn Measure 2: Improving access to financial instruments for SE: 160,86 Mil Kn Measure 3: Promoting education on importance and role of SE at all levels: 75 Mil Kn Measure 4: Promoting visibility of SE: 16,5 Mil Kn Support system No solid support system National Strategy for SE development Legal framework incomplete Financial sources / support insufficient Support system built bottom-up / development CSOs (SEFOR, CEDRA, ZEF, ZMAG, HUB Zagreb) Centar for cooperative entrepreneurship Sonja Vuković, SLAP, Osijek, Croatia 8

9 cluster for eco-social innovation and economy Network of resource/support centers (Osijek, Zagreb, Rijeka, Split, Dubrovnik) Sustainable and systematic support to social enterprises Capacity building program Counselling and mentoring Marketing services and market positioning Networking and clustering Creation of sustainable business models SELF ORGANIZED WITHIN THE CIVIL SECTOR CEDRA Croatia CEDRA - Rijeka CTK CEDRA - Dubrovnik DEŠA CEDRA HR Zagreb CEDRA - Osijek Slap CEDRA- Split Sonja Vuković, SLAP, Osijek, Croatia 9

10 CEDRA value chain factory Target: entreprenurs, coops, NGOs, institutions, cross sector partnerships (LAGs, clusters, productioan and service networks and associations), local governments, counties, development agencies, universities, researchers, innovators... ) CEDRA offers know-how and facilitation of the process Sustainable partnerships (joining resuces, looking for sustainable solutions for community development) Example of value chain project Research and development Developing projects, fundraising, social investment... Tourist service providers Value chain for ekotourism Territorial marketing regional brands Organic farmers Tourist associations and agencies Sonja Vuković, SLAP, Osijek, Croatia 10

11 FIRST CROATIAN ETHICAL BANK ZEF Cooperative for Ethical Financing ZEF founded in 2014 as social coop by 101 members (today > 1200) Business network (regional and thematic) Goal: Founding First Croatian Ethical BANK FEBEA member / wide support Creating new financial instruments Tesla bank acquisition More information: Sonja Vuković, SLAP, Osijek, Croatia 11

12 Platform for Good Economy Good Economy Coop (11 founders led by ZMAG) Good Economy conferences (2014/15/16 /17) Platform coordinated by CEDRA HR (ZMAG, ZEF + 10 other NGOs and social cooperatives promoting ekosocial economy values) Green economy, solidarity groups, organic production, energy efficency coops, recycling etc... Supported by National Foundation for Civil Society Development Member of REVES Main Challenges / intervention areas 1. Creating Legal and institutional framework (supporting environment, clear regulations, no grey areas, tax measures, public procurement system favoring SE) 2. Creating Support infrastructure (CEDRA HR, HUBs, SE Labs on-going support in all development phases) 3. Ensuring systematic financial support to SE variety of instruments (for start-ups and for scalling up) Sonja Vuković, SLAP, Osijek, Croatia 12

13 Intervention areas (2) 4. Engaging business sector to support SE and social employment (funding, mentoring, networking) 5. Cross-sector partnership (involving different stakeholders within local communities) 6. Improving visibility of social entrepreneurship (promote best practices, award, public awareness campaigns) Intervention areas (3) 7. Support networking with relevant support organziations (within EU and worldwide) 8. Introducing and integrating education on SE to public education system (kindergartens, schools, schools and student coops, virtual SE, university curricula, formal and informal education for SE managers) 9. Introducing social impact measurement to SE practice (social audit and other tools) Sonja Vuković, SLAP, Osijek, Croatia 13

14 Why entrepreneurs fail? Critical Areas for SE Inadequate management - emerging from NGO or program leaders lacking managerial skills, know-how and contacts necessary for market positioning Unskilled labor - hired based on social criteria and often lacking professional skills to do the job based on market demands Access to funds timely access to funds enabling SE to cover the costs and invest in marketing and development Sonja Vuković, SLAP, Osijek, Croatia 14

15 Critical Areas (Transit Countries) Unclear legal environment (legal framework not clearly defined; no Law and/or Strategy on Social Enterprise, unclear responsibilities) No solid support system (financial, training, mentoring, sharing information, marketing, networking etc.) Political and general public unaware of concept and benefits of SE (no undertsanding and strategies) Steps towards implementation Sonja Vuković, SLAP, Osijek, Croatia 15