WP5 : First results for France Brussels, October 12th 2015

1. WP5 : First results for FranceBrussels, October 12th 2015 Francesca Petrella, Nadine Richez-Battestiwith the collaboration of Julien Maisonnasse and Nicolas Meunier

2. Outline of thepresentation • Thethird sector at a glance • Key barriers and howtogetover ? • Key findings • Key findings per policyfield • Social services • Culture • Sport • Case studies • Policyrecommendations

3. The Thirdsectorat a glance (1) • Third sector in France = data on Social and Solidarity Economy (SSE) • New law adopted in July 2014 : a major step toward recognition (will include some social enterprises) • SSE : main characteristics (2011) • 10% of total employment (2,3 millions of paid workers) • A large majority of associations : • 84% are associations (78% of employment within SSE) • 12% are cooperatives (13% of SSE employment) • 3% are mutual organizations (6% of SSE employment) • 1% are foundations (3% of SSE employment) • A large majority of very small organizations (64% have less than 5 jobs) and only 1% of very large ones (250 jobs or more) • Between 11 to 14 millions of volunteers (that represent 1 072 000 FTE), most of them in sport and culture

4. The Thirdsectorat a glance (2) • A dynamic sector in terms of job creation : • Between 2008-2011, job creation of 1,4% (-0,2% in the whole economy) • An issue of transmission of the project and a need to “replace” volunteers within the governance structure (generational renewal) • A need to increase job quality : by comparison with the rest of the economy : • Less full-time contracts • Less long-term contracts • More short-term contracts and unstable jobs • Older workers (nearly 30% have more than 50 years) • The renewal of the workforce is another real issue • But higher overall job satisfaction and higher wage equity

5. The Thirdsectorat a glance (3) • The third sector by chosen policy fields : • Social services : • SSE : 62% of employment in this field (mainly associations : 96% of SSE providers, 95% of employment) • The main activity field for associations : 47% of associations are in social services • Culture (performing arts) : • SSE : 27% of employment in this field (mainly associations : 99,4% of SSE providers, 96% of employment) • 6th activity field for associations • Sport (and leisure activities) : • SSE : 54% of employment in this field (mainly associations : 99,9% of SSE providers, 99,8% of employment) • 5th activity field for associations => TSO’s are mainly associations in these three selected fields

6. Key barriers and how to get over ? • Legal environment • A major step toward recognition by the recent law • Administrative and legislative massive tome and complexity • Subsector infrastructure • Differences between activity fields • Need for more adequate and coherent support • Need to strengthen the lobbying forces • Governance • To rebuild a bicephalous governance and renew the board towards a more competence-based and strategic one • Need for training for the volunteers and for decision –making tools • Transmission of the project is a real issue • Introduction of new committees to enlarge participation • Personnel (Human resources) • A lot of pressure on the director who need to be “rare bird” • No problem of recruitment but high turnover • Employment conditions are improving but there is still some progress to be made • Managing volunteers and paid workers is not always easy • Generational renewal

7. Key barriers and how to get over ? (2) • Finances • Main tendency : reduction and diversification of public funds (tendering processes), need to mobilize other types of resources but no miracle solution • One solution ? Organizational change : different forms of cooperation and concentration to reduce costs • Institutional facilities • Difficult to give a general picture given the great heterogeneity • Image • Not well visible for the general public • Negative image (lack of professionalism, a thorn in the side) but slowly changing • Inter-organizational linkages • “Coopetition” : from cooperation to hard competition (sometimes) • With the private commercial sector : end of the « ideological war » • With the public authorities : considered as service providers, need to reinforce the links with public policies at different governance levels

8. Key findings • TSO’s in the 3 selected policy fields : • A large majority of associations, although innovative cases use another legal form (scop, scic, association of employers to share resources in common) • A large proportion of small organizations although there is a trend toward pooling, sharing and concentration • A changing environment at the source of many barriers : • A legislative and administrative environment more and more complex • A more competitive environment • The decrease and transformation of public funds • A lot of common barriers : • governance : re-build a bicephalous governance, competences of the board and of the director at stake • human resources management and generational renewal • finances : need for more diversification • Image : need to build a more positive one • Inter-organizational linkages : monitor cooperation processes and rebuild partnership with public authorities • But differences in the degree of structuration of the sector (social services and sport well structured by contrast with culture) • The existence of organizational innovations to overcome these barriers

9. Key findings per policyfield : Social services • First activity field of the SSE and of associations • 62% of employment in SSE • 95% of employment in SSE are in associations • Associations are the major employer in this field • 33 000 SSE organizations with paid workers • 717 000 FTE in SSE in 2011 • Mainly women (74% of workers) • Less full-time and long-term contracts than in the rest of the economy • Includes : • Help for disabled and dependent persons (adults and children) : home care and lodgings (ex. health care facilities, nursing homes, shelters ) • Child care services • Work integration organizations • Other social services for persons in need

10. Social services : major barriers • Legal environment • Well defined environment at the legislative level • Evolution towards more participation of users and to more tendering processes • Subsector infrastructure • Sector well structured : a lot of umbrella organizations, a lot of support is proposed but • Lack of coherence and visibility • Need to adapt support to the evolution of the environment : need for decision-making tools • Governance • Bicephalous governance not easy to deal with : given the complexity of the environment, growing gap between volunteers of the board and the director : need for a more « strategic and competence-based board » • Need for a generational renewal of volunteers in the boards • Need to associate, at least partially, the employees • The place of users is often highlighted (some participation is required by law) • Personnel (Human resources) • Hard task to be a director : need to be a hero, who keeps his social values and mission and combines them with technical and managerial skills, a lot of pressure on them • Human resources management is not yet an issue for many associations that do not assume their « employer’s function » - things are changing slowly… • No problem in recruitment but high turnover (not a lot of carrier perspective) • Management of paid work and volunteers not always easy

11. Social services : major barriers • Finances • A major barrier for associations : key issue : how to diversify their financial resources ? • Two main trends in public funds: • a decrease of public subsidies • a transformation of public financing sources : more diversity (State, Region, municipalities and different services within the administration) and more tendering processes. • Market resources : limited given the nature of the users • Reliance on volunteer resources : limited by the need to professionalize • Sponsoring and philanthropy : very little importance by now, only for one-shot projects, could not be the miracle solution, need time and competences • Institutional facilities • Large variety of situations • General tendency towards cooperation and concentration (mergers) to reduce costs • Associations do not have access to funds to invest into new technologies and innovations (by contrast with commercial enterprises) • Image • TSO’s are little known, not visible by the general public, they don’t make any difference • Negative image by public authorities but it is slowly changing • Inter-organizational linkages • Cooperation between associations is strongly recommended by public authorities although there are competing for public markets : coopetition • With private companies : barriers are breaking down • With public authorities : associations are considered as services providers that answer to the public demand, loss of innovative capacity, very little co-building of public policies

12. Key findings per policyfield : Culture • A very diversified sector : focus on cultural associations in performing arts • A major field in the third sector : Culture = 6th activity sector within TSO’s in 2011. • Main characteristics of the sector (2011) : • 267 000 cultural associations (only 13% of them have at least one paid worker), average size is 5 employees per association : very small associations • 169 000 FTE paid workers (9,4% of employment within associations). • Less workers in long term contracts (30%) than the average of associations (47%); more short-term and unstable contracts (occasional workers) than the average : 40% against 22% • Higher level of education : 65% of employees have a diploma of higher education (min bac+2), only 41% in the associative sector in general. • 189000 FTE of volunteers, 20% of volunteers in associations in France • Less dependency from public funds (40% of their budget) than associations on average (49%)

13. Culture : major barriers • Subsector infrastructure : • Lack of structuration of cultural TSO’s : need for coordination and reinforcing lobbying and representativeness of this sector • Need for technical support (project engineering) : large use of a public tool (dispositif local d’accompagnement) • Need to strengthen the link between cultural TSO’s and the rest of the third sector • Governance : • Given the growing complexity of the environment, need to build a new internal governance, more strategic and more professionalized => training for volunteers ? • Need to reinforce the collective dynamic within cultural associations (the artist used to be alone) • Need to create new committees to strengthen participation of users • Personnel (Human resources) : • Difficulty to manage a diversity of employment contracts and forms : qualified work, subsidized low-skilled jobs, civic service contracts, occasional workers, • High turnover within the teams, lack of job security, low wages

14. Culture : major barriers • Finances • Need to diversify financing resources while making cultural activities accessible to all in a social inclusion and education perspective • Multiplication of public sources of financing : very high administrative load • Difficulty to get European funds • Difficulty to get sponsorship (especially for small associations) • Institutional facilities • Not a major issue, in general organizations are well off • Some delays as far as the use of digital technologies are concerned • Image • Need to increase visibility : cultural TSO’s are not known by the general public • Inter-organizational linkages • “Coopetition” between cultural TSO’s • Opening toward partnership with private commercial enterprises • Need to be considered as partners of public policy not only to be expected to answer to tendering processes and execute public orders

15. Key findings per policyfield : Sport • A difficulty to estimate the number of sportive associations • Globally, there were in 2012 at least 210 000 associations of 3 types : • Associative clubs (165 000), 100 federations (umbrella organisations) • Associations whose main activity is sport (10 000) • Associations whose secondary activity is sport (min 35 000) • 31 000 associations have at least one paid worker (20% of employer’s associations) • 80 000 paid workers, (around 60 000 FTE), 4,5% of total employment by associations • 80% of employer’s associations have less than 3 paid workers • Data for sport and leisure activities (2011): • SSE : 78% of providers • SSE : 54% of employment • 5th activity field of SSE • associations : 99,9% of SSE providers and 99,8% of the SSE employment • Less long-term contracts and less full-time jobs (46%) • A majority of men and young employees (more than 50% are less than 40 years old) : passion of the sport is a strong motivation

16. Sport : major barriers • Subsector infrastructure • A very well structured sector (vertically and horizontally) : every association is affiliated to a departmental committee which is part of a regional committee ; each municipality has a local representative for sports but greats inequalities • Umbrella organizations can provide support but this information is not well diffused among associations • Sports facilities at disposal from municipalities (various degrees) • Governance • Bicephalous governance : not always easy ! • Need for training for the directors given the context • Personnel (human resources) • The director has to be polyvalent but is not often trained to manage workers • Management of volunteers and paid workers sometimes difficult • Need for training of both volunteers and paid workers given the administrative and juridical complexity of this sector • No major problem of recruitment, except in some rural or remote areas but high turnover rate

17. Sport : major barriers • Finances • Need for diversification of resources (difficult to achieve) : • Public resources are decreasing (great effort via the CNDS – centre national de développement du sport – in the last 5 years to give public resources for the development of sport accessible to all and anchored in territorial policies, public funds to create skilled and long-term jobs) • Sponsoring is not always easy to get and is linked to the good results of the club or the media coverage (competition between club) • Increasing membership fees : limited solution if sport wants to be accessible to all • Institutional facilities • Large variety of situations : some sports need heavy investments while other don’t • large dependency to local policies since municipalities are the major provider of sports facilities • Need for sharing and pooling resources : the development of employers’ associations, to group some tasks and share paid workers, some tools are provided by the regional committee of sport • Image • Biased image by the reputation of large and successful clubs such as football clubs • Image of the sportsman as passionate • These images hide what is really done by sport associations at the territorial level in terms of social link and social development • Inter-organizational linkages • Rivalry between sports makes difficult to develop a transversal territorial project • Entry of private commercial enterprises in some activity : kite surf, canoe, nature expeditions… • Strong relationships between associations and local public authorities

18. Case studies • Social services • Association of family home care services (Valréas) : family care, child care and care for the elderly, created in 1964, around 100 employees; • Calme (Nice), clinic (against alcoholism therapy), cooperative (scop), created in 1981, 33 employees; • La Varappe (Aubagne), WISE, Work integration and environment, 150 FTE, 1500 employees in integration (interim) accounting for 300 FTE; • Culture • Les Têtes de l’Art (Marseille), artistic mediation association : engineering participatory art projects, engineering and mutualisation platform, to pool and share resources; to foster networks and partnership between cultural, social, educational and economic actors coming from the same territory, created in 1996, 12 paid workers. • Illusion Macadam (Montpellier) cooperative (collective interest cooperative - SCIC), engineering of cultural support, 23 FTE, 34 members, created in 2001 • Sport • Sport Objectif Plus (Manosque), association, created in 1991, to consolidate employment in sport and in associations in general, 7 employees, 12 directors in the board

19. Policy recommendations :first propositions • Give more value and visibility to the impact of TSO’s in terms of employment, social inclusion, social cohesion and territorial and economical development, • To simplify administrative processes (toward a unique file for subsidies per public authority) and to decompartmentalize between health and care services • Need to support infrastructure and develop engineering and consulting : • Support umbrella organizations to reinforce their representation and support mission • Provide training to both volunteers and directors (strategic management, HRM, accounting, law) • Support cooperation, pooling and sharing processes • Foster the development of territorial projects