European Economic and Social Committee Social entrepreneurship and social enterprise

1. European Economic and Social CommitteeSocial entrepreneurship and social enterprise Ariane Rodert 2011-11-21

2. Background – why social enterprise? • Lisbon treaty, Monti-report calls for a ”highly competitive social market economy” • EU 2020 highlights social economy, social enterprise and social entrepreneurship i.e. “Innovation Union” and “Platform against poverty and social exclusion” • Contribute to the EU2020 targets: • Smart growth = social innovation • Sustainable growth = environmental impact, long-term vision • Inclusive growth = people and social cohesion • “Crisis calls for social innovation - no more business as usual”(Andor 20111118) • Single Market Act, remained a priority • Social entrepreneurship and social enterprise create both social and economic outcomes • Social economy is already an important actor*: • 2 million social enterprises in the EU • Employs 11 million (6% of all) • 1 of 4 new companies are social enterprises * KOM(2011)682 s 3

3. The EESC:s work on Social Enterprise • EESC member represent key social economy actors, key expertise and knowledge • EESC has produced significant work in this area previously: • Voluntary organisations and foundations in Europe SOC/347 (1998) • The Social Economy and the Single Market INT/029 (2000) • Role of Social Economy enterprises in the economic diversification in the accession countries CCMI/006 (2004) • Ability of SMEs and social economy enterprises to adapt to changes imposed by economic growth INT/242 (2004) • Opinion on Commission Communication on Cooperative Societies Promotion INT/238 (2005) • Diversity of forms of enterprise INT/447 (2009)  • Social entrepreneurship and social enterprise INT/589 (2011) • Specifically mentioned in President Nilsson’s work programme on social economy and sustainable businesses * KOM(2011)682 s 3

4. Process in summary • Single Market Act - April/2011 • Commission request for exploratory opinion - June/2011 • EESC internal process: • Open consultation July-September • Public hearing - July 28 • Two study groups - July and September • INT-section - October • Plenary adoption - October 26 • Commission launch communication "The Social Business Initiative” - October 25 • Commission conference ”Promoting Social Entrepreneurship” – November 18 • Implementation of Commission key actions – 2011-2012 • EESC follow-up opinion on SBI and related areas

5. EESC Opinion • Definition for social entrepreneurship and social enterprise • Key priority areas • Including social enterprise in public enterprise policy • Stimulating social investment • Modernising public financing • Launching development programmes for social enterprise • Building awareness of and trust in social enterprise • Other comments (volunteers, employees, new member states, external relations)

6. EESKs definition • Primarily social objective over profit, producing social benefit, public interest • Surpluses principally reinvested towards social aim • Variety of legal forms and models, often hybrid • Economic operators producing goods and services (often (SGI) • Independent entities, participation, governance and democracy • Often connection to civil society organisations

7. EESC keyrecommendations • Full implementation of Commission action plan at all levels • Describe social enterprise based on shared characteristics • Include social enterprise in public policy enterprise initiatives/programmes on equal terms • Promote cross-border initiatives through European meeting-places, ideas, models • Top priority better access to tailored capital - share good practice and innovative initiatives • Ensure EU regulatory framework support, not hinder new instruments • Target structural funds explicitly towards social enterprises • Launch EU-wide comparison of suitable public financing methods • Encourage and assess tenders with social considerations, tackle "gold plating”

8. EESC keyrecommendations • Consider full state aid exemption of social services of general interest, or small-scale public services, certain social services • Review and share specific tax regimes • Develop support programmes for social enterprises and of social entrepreneurs • Explore European system and use current models for measuring social outcomes • Study existing social labels • Include social enterprise research, innovation and development programmes • Collect and share statistics on social enterprise in Europe • Particular emphasis on new Member States to ensure the emergence of social enterprise

9. Commission Communication “Social Business Initiative””Creating a favourable climate for social enterprises, key stakeholders in the social economy and innovation” • Commission definition of ”social enterprise”to cover the following types of businesses: • Those for which the social or societal objective of the common good is the reason for the commercial activity, often in the form a high level of social innovation • Those where profits are mainly reinvested with a view to achieving this social objectives, • And where the method of organisation or ownership system reflects their mission using democratic or participatory principles or focusing on social justice • May also include: • Provision of social services and /or goods • Business with a method of production of goods or services with a social objective

10. Commission Communication “Social Business Initiative”Action plan with 11 key actions 1) Improving access to funding - facilitating access to private funding and mobilisation of EU funds • European regulatory framework for social investment funds • Progress Microfinance Facility • Structural funds 2) Increasing the visibility of social entrepreneurship – developing tools to understand the sector, increase visibility, reinforce managerial capacities, professionalism and networking • Identify and replicate best practices and models • Create public data base for labels/certifications • Promote mutual learning and capacity building • Single, multilingual data and exchange platform • Promote community programs aimed at social entrepreneurs 3) Improving the legal environment – developing European legal forms, public procurement and state aid • Statute for Cooperative Society, European Foundation Statute, Mutual Societies • Enhance quality in procurement • Simplify State Aid rules to social and local services

11. Commission Communication further ideas… • Exchange of good practices public, semi-public financing • Access to venture capital • Social enterprise and European Year for Active Ageing 2012 • Promote research of socio-economic impact • Block-exemption, new state-aid category • Best practice sharing national tax regimes • Use of accumulated capital, asset locks • Strategies, funding dialogue social enterprises and financial institutions • Dormant patent access • Trading platforms etc. • Volunteers and donations • European statute for other forms such as associations

12. Next steps • Build awareness and stress implementation at Member State level • Closely connected to EU2020 • Must be prioritised in National Reform Programmes  investment priorities in ESF etc. • Key in social innovation initiatives • Public procurement, state aid… • Volunteering and civil dialogue • . …etc. • Key is role and competence of public authorities • Role of the EESC, the ESC and the Liaison Group: • Follow implementation and further development • Provide input, expertise etc. • Link to national level

13. Thank you for your attention ariane.rodert@socialforum.se ariane.rodert@famna.org