Enrico Testi PhD Coordinator EFESEIIS Project Director ARCO

1. EFESEIIS -Enabling the Flourishing and Evolution of Social Entrepreneurship for Innovative and Inclusive Societies – An insightintoprojectresults Belgrade, 19th April 2017 Enrico Testi PhD Coordinator EFESEIIS Project Director ARCO Director Yunus Social Business Centre University of Florence

2. Structure of the presentation • Structure of EFESEIIS project • The concept of enabling ecosystem for SEs • Main results and some comparison between SEs in Serbia and other EU countries • What creates an enabling ecosystem for Social Enterprises and general policy advices

3. Social Enterprises in 11 EU Countries Albania, Austria, England, France, Germany, Italy, Poland, Scotland, Serbia, Sweden, The Netherlands Comparative historical overview Analysis of Social Entrepreneurs (Survey, behavioral experiment) New Generation of Social Entrepreneurs Mapping of stakeholders The role of main institutions Enabling Eco-System Evolutionary theory

4. Social Enterprises in 11 EU Countries Albania, Austria, England, France, Germany, Italy, Poland, Scotland, Serbia, Sweden, The Netherlands Comparative historical overview Analysis of Social Entrepreneurs (Survey, behavioral experiment) New Generation of Social Entrepreneurs Mapping of stakeholders The role of main institutions Enabling Eco-System Evolutionary theory

5. What is an enabling ecosystem? an ecosystem that fosters SEs’ resources, means, opportunitiesto pursue their objectives AND is able to develop and reproduce over time its enabling features

6. Software features -Institutions -Culture -Values -Social Capital Etc… Hardware features -Legal Framework -Financial instruments -Incubators -Training Etc…

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8. Some results of the Survey on Social Entrepreneurs 837 respondents

16. How to create an Enabling ecosystem for Social Enterprises? • Enabling ecosystem for what kind of Social Enterprise? • Which type/kind we want to promote? • WhatroleshouldSEshave in the system?

17. How to create an Enabling ecosystem for Social Enterprises?* • Common features of an enabling ecosystem • Access to different types and varieties of resources • Human capital and linkages between organizations • Collective action and high levels of social capital • Adequate demand for specific goods and services • Institutional robustness and political willingness • Policy challenges • Thinking long-term to create more effective policies • Conceiving SEs as something more than a shortcut to reduce the cost of welfare • Promoting a culture that prioritizes equity and inclusion *From Biggeri, M, Testi, E, Bellucci M, (forthcoming) Enabling ecosystems for social enterprises and social innovation: a capability approach perspective, Journal of Human Development and Capabilities

18. Provide different types of grants and financing (e.g. grants with different amounts, different co-financing levels required, and different project lengths). • Give organisations the opportunity to use un-occupied or under-utilized public buildings and areas. This should be accompanied by the possibility to change the use that can be done of such spaces for example by changing the type of buildings from commercial to residential, in order to enhance the opportunities for their use; • Create grants that positively value innovation and accept the possibility that innovative approaches might fail. For instance, this means issuing grants that are specifically meant for experimenting with new approaches to solving social or environmental problems rather than solving the problem per se; • Apply the EU’s Public Procurement Directive (2014/24/EU) and include social clauses in tenders in order to stimulate demand for products and services with a higher social impact. This could be done via the methods identified in Testi and Bellucci (2011) and Federico et al (2012);

19. Promote bankruptcy laws that encourage organizations and individuals to start new social ventures after previous ventures have failed; • Promote spaces (physical or digital) — such as hubs, citizen centres, and digital forums — in which citizens and organizations can meet and organize themselves in order to find solutions to social problems (see, for example, the co-working spaces that have been devised by the Impact Hub Network); • Share easy to read information on social needs and data from social services so that SEs can better quantify the potential market/s for new goods and services; • Promote training of employees and volunteers, as well as activities that can increase the chances of meeting people and being exposed to new ideas; • Encourage companies to emphasize accountability measures, most notably sustainability reporting and stakeholder engagement practices.

20. Long term recommendations: • Simplify the legal framework in order to encourage individuals and organizations to set up new SEs but also to ease their activities (e.g. laws not directly connected to Social Enterprises that influence them such as: job, tax etc.) ; • Promote special programs and teaching methods in the educational system that foster sensitivity to social and environmental issues; soft skills that enhance collaboration; altruism, solidarity and empathy; and a culture that sees failure as an opportunity to do better.

22. Existing System Enabling System

23. Main results from territorial appraisal Pistoia area 293.000 Inhabitants 61 Social Businesses 200+ Non profit organizations Main lacks in the system -Citizens have a low or no knowledge of Social Business -Low economic sustainability of some existing Social Businesses -Many actors already involved in Social Business but no coordination

24. Main objectives of Pistoia Social Business City to create the enabling eco-system • Increase knowledge of Social Business among citizens Activities: workshops, events, media-coverage of the subject • Increase sustainability (market revenues) for existing Social Businesses • Activities: research (SNA, Cluster Analysis etc.), specific training for managers, best practices and innovation sharing • Coordinate actors on common activities • Pistoia Social Business Day, micro-credit, funds for ideas, common EU projects etc.

25. 200+ university students and citizens involved in workshops

27. 300+ students aged 16-18 attended classes on Social Business • Knowledge on Social Business and Microcredit increased from 21% to 80% (correct answers in tests) • students stating to be interested in becoming entrepreneurs in the future: 10-11% at the beginning 25-26% at the end of the classes

31. THANK YOU! Contacts: Enrico Testi: enrico.testi@pin.unifi.it