Social Economy Anna Grudzińska

1. Social Economy Anna Grudzińska ‘market-oriented economic activities serving a social goal’

2. Projekt : „Odpowiedź na wyzwania gospodarki opartej na wiedzy: nowy program nauczania na WSHiP”. Projekt współfinansowany ze środków Unii Europejskiej w ramach Europejskiego Funduszu Społecznego.

3. surplus • "the aim of serving members or the community rather than generating profit„ • surplus: "socialized„ - „that is to be reinvested in the development of the activity or to be used for the benefit of people other than those who control the organisation”

4. social economy • collection of new types or organizations: co-operatives, mutualsocieties, associations, and, with increasing frequency: foundations • „a process, a new entrepreneurial spirit influencing and re-shaping older third sector initiatives”; • specific target groups

5. Europe • steady development since 1991 (Italy – co- operatives) • 2002 – U.K. Blair government launched the "Coalition for Social Enterprise" and created a "Social Enterprise Unit, under Secretary of Commerce and Industry

6. co-operatives • market goods and services • private individuals or corporate entities • one person- one vote principle • surplus, partially refunded to members • contributions by members

7. mutualsocieties • non-market services • members: private individuals • one person – one vote principle • dues • no surplus distribution among members (may be used to lower dues)

8. redistributive role • „The importance of this third sector is now such that one can affirm that it is • broadly associated with the major economic roles of public authorities: the third • sector is involved in the allocation of resources through the production of many quasipublic goods and services (in the fields of health, culture, education, social action, proximity services, sport, leisure, the environment, advocacy etc.); • it has a redistributive role through the provision of a wide range of free or virtually free services to deprived people via the voluntary contributions (in money or through voluntary work) which many associations can mobilise; and this sector is also • involved in the regulation of economic life when, for example, associations or social co-operatives are the privileged partners of public authorities in the task of helping back into work low qualified unemployed people, who are at risk of permanent exclusion from the labour market”.

9. social enterprise • A Social enterprises use entrepreneurship, innovation and market approaches to create social value and change; they usually share the following characteristics: • Social Purpose - created to generate social impact and change by solving a social problem or market failure; • Enterprise Approach – uses business vehicles, entrepreneurship, innovation, market approaches, strategic-orientation, discipline and determination of a for-profit business; • Social Ownership – with a focus on public good and stewardship, although not necessarily reflected in the legal structure. • Social enterprises may be structured as a department within an organization or as a separate legal entity, either a subsidiary nonprofit or for-profit. • The purpose of the social enterprise may be: • an additional funding mechanism for the organization’s social programs or operating costs; • a sustainable program mechanism in support of the organization's mission; or • a leadership development mechanism in support of social innovation.

10. social enterprise – how: generate income? • fee-for-service (microfinance – interests) • products (maufacturing of goods) • service (children –ngo -paid day care, café employing disabled people sells coffee ) • membership Dues (fees collected from members in exchange for service – insurance, conference, discounts)

11. social enterprise – how: generate income? • intangible assets: generating income by leveraging an intangible asset such as proprietary content, methodology, brand, reputation, relationships, goodwill, etc. • international children's organization licenses its logo and brand name to a clothing line; • a membership organization sells its mailing list

12. social enterprise – how: generate income? • generating income by renting or leasing a tangible asset such as office space, building, land, vehicles, or equipment. • human services organization leases its idle office space to another nonprofit organization • an environmental conservation organization leases its land to an eco-touring organization.

13. social enterprise – how: generate income? • Revenues from a business unrelated to the organization's mission and created for the purpose of funding specific social activities or the organization at-large. • museum shop • retail store of an environmental organization; • Girl Scout cookies

14. welfare mix • "welfare mix" where new bases should be found for the sharing of responsibility • among public authorities, for-profit providers and third sector organizations

15. definition • The most recent definition, developed by the British government, was published in July 2002. It is found in a paper entitled „Social Enterprise: A Strategy for Success: • "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"

16. who benefits? 1/An explicit aim to benefit the community • „One of the principal aims of social enterprises is to serve the community or a • specific group of people. • In the same perspective, a feature of social enterprises is their desire to promote a sense of social responsibility at local level”.

17. participation 2/An initiative launched by a group of citizens • „Social enterprises are the result of collective dynamics involving people • belonging to a community or to a group that shares a well-defined need or aim; this • collective dimension must be maintained over time in one way or another, even • though the importance of leadership - often embodied by an individual or a small • group of leaders – must not be neglected”.

18. who decides? 3/A decision-making power not based on capital ownership • „This generally means the principle of "one member, one vote" or at least a • decision-making process in which voting power is not distributed according to capital shares on the governing body which has the ultimate decision-making rights. • Moreover, although the owners of the capital are important, the decision-making rights are generally shared with the other stakeholders.”

19. participation 4/A participatory nature, which involves the various parties affected by the activity • „Representation and participation of users or customers, stakeholder influence • on decision-making and a participative management are often important • characteristics of social enterprises. In many cases, one of the aims of social • enterprises is to further democracy at local level through economic activity.”

20. profit 5/A limited profit distribution • „Social enterprises not only include organisations that are characterised by a • total non-distribution constraint, but also organisations which - like co-operatives in • some countries - may distribute profits, but only to a limited extent, thus avoiding a • profit-maximising behaviour”.

21. social inclusion • Social justice • Environment (loss of biodiversity, destruction of forests) • People-centered economy (re-distribution of profit) • Community development (collaborative practices) • Fostering positive social change • Better quality of life • Technological innovation

22. double bottom line/ triple bottom line • economic return on investment • social return on investment • environmental return on investment

23. Case studies: • http://www.youtube.com/watch?v=SAILh7xZ7QE

24. Virtue Ventures Foundation: • “Social enterprise as a tool for achieving mission has come to the fore. It's more than a revenue strategy. People are beginning to look at it as a tool of economic empowerment for the communities they serve. It's not just a fundraising tool-it's a mission fulfilment tool.” • Yma Gordon,Ms. Foundation

25. economic development • Creating economic opportunities that either develop markets for small and underprivileged business, or that foster self-employment and create jobs for lowincome people, enabling them to attain economic security for themselves and their families. • Microfinance institutions are the best-known example of economic development social enterprises.

26. workforce development • Creating employment for disenfranchised or at-risk populations so “hard-to-employ” people can earn a livable wage and develop marketable skills. • Vocational training, disabilities programs and a host of social service programs often create social enterprises for this purpose. • Workforce development social enterprises are also common in the U.S., but have proven successful in post-Soviet and transitional countries

27. sustainability • Nonprofit sustainability. • Increasing nonprofits’ ability to generate income to support their social programs without continued reliance on donor funding. Used by all types of nonprofits to varying degrees, sustainability is achieved through a wide range of commercial activities—e.g. product sales, fee-for-service, government contracts, leasing, private sector partnerships, membership and conference fees. • A key differentiator is not in purpose, but in structure: Income is earned through mission-related activities integrated within social enterprise operations–i.e. commercialization of social services, or • alternatively through unrelated business or subsidiary activities where earned income subsidizes social programs.

28. Projekt : „Odpowiedź na wyzwania gospodarki opartej na wiedzy: nowy program nauczania na WSHiP”. Projekt współfinansowany ze środków Unii Europejskiej w ramach Europejskiego Funduszu Społecznego.