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This regional workshop, held in Bratislava on December 4, 2009, aimed to enhance the sustainability of community-based development by exploring the impact of social entrepreneurship in Western Europe and Central Eastern Europe (CEE) and the Commonwealth of Independent States (CIS). Key issues discussed included the institutionalization of social enterprises, recent developments in the sector, and strategies for addressing socio-economic challenges. The workshop emphasized the importance of social enterprises in providing general-interest services, creating new job opportunities, and fostering inclusive governance models within local communities.
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Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship” Bratislava · 4 December 2009 Rationale and Impact
Main Issues • Social enterprise in western Europe • Context of development • Social enterprise institutionalization • Recent evolution • Social enterprise in CEE and the CIS • Context of development • Impact
Context of development of social enterprises in western Europe • Changes in the demand for and supply of welfare services • Bottom-up mobilization • Emergence of new types of enterprises and concepts
Social enterprise institutionalization • High innovation potential (product /process) of social enterprises • Institutionalization of recent evolution
Social enterprise institutionalization Institutionalization of SEs in EU-15 • pre-existing legal forms • association • cooperative • legal frameworks designed for SEs • adaptation of existing legislation (via cooperative form in Italy, Spain, Portugal, France, Poland) • adoption of new laws on social enterprise (Belgium, UK, Italy)
Context of development of social enterprises in CEE and the CIS • Re-organization of SS system still weak (gaps in service delivery) • Liberalization of former mechanisms of social inclusion=reduction of fundamental social rights • High rates of unemployment rates among certain segments of the population (disadvantaged people; minority groups; single-women; etc.) • Institutional pluralism = pre-condition for balanced economic development
Context of development of social enterprises in CEE and the CIS • Institutional framework capable of managing transactions effectively presupposes: • well-functioning markets • efficient public agencies • investor/consumer/producer-owned enterprises/NPOs • SEs=unique way to address un-tackled socio-economic challenges
Context of development of social enterprises in CEE and the CIS • Boom of civil society initiatives in the early transition • Distrust towards economic initiatives carried out by third sector organizations • Negative image of cooperatives
Impact of social enterprises SEs make at least 5 important contributions to socio-economic development in CEE and the CIS
Impact of social enterprises 1. Social enterprises complement the supply of general-interest services • interesting experiences of cooperatives and social enterprises guaranteeing access to general-interest services in CEE and the CIS
Impact of social enterprises 2. Social enterprises contribute to a more balanced use and allocation of resources • influence on the management of economic and social development • promote inclusive governance models • empower the local community in strategic decision-making
Impact of social enterprises 3. Social enterprises generate new employment • develop new activities and create new employment in the sectors where they operate • employ unoccupied workers and disadvantaged workers • promote new forms of work organization
Impact of social enterprises 4. Social enterprises enhance social capital • supply goods and services that are characterized by a high social potential • inclusive and participatory approaches result in the active participation of citizens • mobilization enhances the sense of social responsibility towards the belonging community • contribute to overcome the low citizen trust in political institutions
Impact of social enterprises 5 Social enterprises contribute to regularizing informal activities • several social enterprise-like initiatives arise informally and become formal once they are legally recognized • social enterprise-like initiatives may be prevented from becoming part of the formal economy as a result of an inappropriate legal and fiscal system • when legal/fiscal environment enabling, social enterprises can facilitate irregular workers to get out of the black market