Key research findings and regional trends

1. Regional Workshop: “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship” Bratislava · 4 December 2009 Key research findings and regional trends

2. UNDP-EMES study • Preliminary mapping of the social enterprise phenomenon in CEE and the CIS • 13 countries investigated • Need for new research

3. Long lasting history of Third Sector organizations in the region • Poland: in 1927 3,539 credit cooperatives with over 1 million members; • Bulgaria: 1,600,000 people members of cooperatives at the eve of Communism rise to power; • Ukraine: in 1916 2,643 associations called brotherhood. Rich history contributed to the revitalization of the TS after the collapse of communist and socialist regimes

4. Current situation • Social enterprises still rare practice: • Poor understanding of the phenomenon • Lack of political and legal recognition • Difficulties in assessing the dimension of the sector • Social enterprises still far from being legitimized as actors of new welfare systems

5. Main development trends • Association and foundation main legal forms used by social enterprises • Limited engagement in economic activities allowed • Creation of subsidiary commercial enterprises to conduct economic activities (eg Macedonia, Bulgaria, Croatia, Romania, Croatia, Bosnia and Herzegovina etc.) • Negative image of cooperatives • Institutionalization of social enterprises • New legal frameworks introduced in Poland, Czech Republic, Slovenia, etc.

6. Main development trends • Social enterprise accepted when integrating disadvantaged workers • New legal frameworks • Cooperatives for the disabled inherited from Communist time • Role of social enterprises as social service providers overlooked

7. Endogenous and exogenous factors influence the development of SEs 1. Existence of cohesive groups • Authentic mobilization of citizens • Weak participation of local inhabitants can jeopardize the action of social enterprises • Rural versus urban localities

8. Endogenous and exogenous factors influence the development of SEs 2. Reliance on high stocks of human capital • High skilled workers employed, but weak entrepreneurial skills ans awarness • Educational and training programmes needed

9. Endogenous and exogenous factors influence the development of SEs 3. Predisposition towards social inclusion • Stigmatization of vulnerable groups hampering factors for social enterprise action • Social enterprises integrating homeless people, former drug addicts, and prisoners tend to hide their social goal • Necessity to carry out advocacy activities

10. Endogenous and exogenous factors influence the development of SEs 4. Existence of an enabling legal framework • Lack of adequate legal frameworks prevents the institutionalization of social enterprises • A significant number of social enterprises is doomed to perform in the underground economy

11. Endogenous and exogenous factors influence the development of SEs 5. Prevalence of fruitful interaction with public authorities • Good instances exist, but they are quite fragmented • Consistent and coherent policies towards social enterprises should be developed at all levels of government

12. Endogenous and exogenous factors influence the development of SEs 6. Adoption of pro-development policies by donors • Negative consequences when artifical development is boosted • Institutional and capacity building programmes highly valuable

13. Endogenous and exogenous factors influence the development of SEs 7. Pre-existing and recognized third sector • Existence of well developed third sector has paved the way for the development of social enterprises

14. Conclusions Similarly to Western countries, in CEE and the CIS SEs are a structural trend rather than a contingent phenomenon • Evolutionary dynamics context-specific • Specificity of social enterprises in transition contexts when compared to western Europe • Major differences among countries • Effective strategies and policies are needed • Value of research, workshops and capacity building seminars

15. Thank you!giulia.galera@euricse .eu