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CITIZENS WITH A VISION: THE IMPACT OF SOCIAL ENTREPRENEURSHIP

CITIZENS WITH A VISION: THE IMPACT OF SOCIAL ENTREPRENEURSHIP. CEPES. Non-profit organisation which gathers and represents the most relevant Social Economy institutions in Spain:. Rural development and agricultural co-operatives Worker’s co-operatives Consumer co-operatives

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CITIZENS WITH A VISION: THE IMPACT OF SOCIAL ENTREPRENEURSHIP

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  1. CITIZENS WITH A VISION: THE IMPACT OF SOCIAL ENTREPRENEURSHIP

  2. CEPES. Non-profit organisation which gathers and represents the most relevant Social Economy institutions in Spain: • Rural development and agricultural co-operatives • Worker’s co-operatives • Consumer co-operatives • Service co-operatives • Social insertion companies • Labour societies • Sheltered Employment Services • Foundations • Co-operative business groups: MCC, ASCES

  3. Functions: - The promotion of social economy as well as the search for common spaces where alternatives for future development and new integrating models can be provided, where personal value is considered the axis of economical, productive and social activity. - Territorial sustainable development by means of the co-operative formula, so as to generate social capital, the engine for economic development.

  4. ASCES is one of CEPES members. It is a non-profit body which gathers 6 co-operative institutions in the Valencian Community. • CONSUM, consumer co-operative with more than 500,000 members. It is the second biggest commercial distribution company in the Valencia Region. • ANECOOP, second degree co-operative with more than 98 associated co-operatives, leader in commercial distribution of agricultural products in Spain and one of the most important at European level. • COARVAL, second degree co-operative which gathers 170 co-operatives, devoted to the supply of agricultural products.

  5. GRUPO SOROLLA (SOROLLA GROUP), worker’s co-operative devoted to the construction and management of education centres and sports facilities. • FLORIDA Centre de Formació, education centre offering university education, management programmes, initial, higher and specialised vocational training as well as secondary education. It also provides career guidance for employment and self-employment and carries out consultancy and research projects oriented to local development. With more than 4,000 students per year and about 200 staff, Florida conceives lifelong training as a pillar for the correct social and professional integration. • INTERCOOP, second degree co-operative comprising 226 co-operatives. It supports rural development, innovation and territorial transformation of inner areas by means of oil and dried fruits production.

  6. Our vision • How is Socıal economy contributing to the progress of societies • What is the impact? • Lack of indicators, then ... • Present some examples

  7. What do we understand by Social Economy entrepreneurship? • ENTREPRENEURSHIP. Business men and women who have chosen a special way of carrying out business activity: the co-operative model. Revisiting The 21st Century Co-operative Principles: A co-operative is an autonomous association of people who have gathered in a voluntary way in order to satisfy their needs as well as economic, social and cultural aspirations by means of a joint and democratically-managed venture.

  8. Co-peratives are based in self-support, self-responsibility, democracy, equality, equity and solidarity values. • The co-operative principles represent a guideline for the co-operatives to express their values.

  9. Specific characteristics of the co-operative model • Made jointly with other people, in a voluntary way(ICA principles 1 & 3) • Based on the force of labour (today in the force of knowledge) not on capital (and, if it is capital, it is human capital) • Inter co-operation (6th principle) • Benefits re-distribution • Benefits re-investment • Involvement and commitment with the local environment (7th principle) • Importance of training: a certain % (fixed by law) of benefits are devoted to training (5th principle) • Each and everyone of these elements define the Social character of this economic model: Social Economy

  10. IDENTIFYING INDICATORS • 3 EXAMPLES • AGRICULTURAL CO-OPERATIVES IN THE VALENCIA REGION • SPANISH CONSUMER CO-OPERATIVES • EUROPEAN WORKER’S CO-OPERATIVES

  11. AGRICULTURAL CO-OPERATIVES IN THE VALENCIA REGION • Awareness raised about the value of UNION. • KNOWLEDGE developed: one single producer has a more limited knowledge than that of which he is participating. Apart from producing fruits or vegetables, agricultural co-operatives know about joint and participative MARKETING MANAGEMENT. participativa. • Knowledge which adds direct ECONOMIC VALUE to the territory. • VALUE added in terms of SOCIAL CAPITAL: development of know-how in participative management and democracy which have spread to other daily life contexts of the society where the co-operative is operating. • Promotion of ENTREPRENEUR SPIRIT in very conservative contexts or cultures such as the agricultural one.

  12. Derived from this social capital generating context: : • Agricultural co-operatives have constituted as an axis around which other services and activities have emerged, generating new value to the community, beyond the co-operative members. • E.g.: Credit co-operatives, Housing co-operatives, education co-operatives, co-operative stores.

  13. CONSUMER CO-OPERATIVES • Following the principles which inspired their creation, consumer co-operatives aim at joining efforts of thousands of people wishing to obtain quality products. However, they also integrate the defence of consumer interests as new products or consumption models emerge. Organised consumers are able to care for their interest and even to anticipate new needs.

  14. Beyond supporting saving by generating volume and economies of scale, consumer co-operatives imply… • Structures created by citizens playing their role as consumers. They valorise citizens participation in society, giving them the capacity to decide and self-manage. • Consumer empowerment, raising awareness of their capacity to influence society. • Relevant educational role. • Generation of a certain counterpower to face the monopoly of multinational corporations.

  15. WORKER’S CO-OPERATIVES • Worker’s co-operatives exist in a variety of sectors, thus their differential element with regards to other companies is the the fact that the VALUE to the ORGANISATION is defined by the PERSON, not by the CAPITAL. • In worker’s co-operatives 1 member has 1 vote; surplus is re-distributed according to the member’s work contribution, who are not only committed as regards work but also with their capital.

  16. Most relevant elements in terms of social capital generated: • Raising of an entrepreneur (not salaried) business awareness. • Democratic habits and living together: co-operative members are used to exercise their right to vote in the General Assembly. • Training in participative management models, team work and inter co-operation. • Importance of Human Capital development: co-operative Acts in Spain establish that between 5 to 10% of co-operative benefits must be devoted to member training. • Re-investment, wealth and employment: employment generation and surplus re-investment are indisputable indicators of wealth generation and territorial development. • Social commitment and involvement with the community

  17. Are co-operatives the most appropriate bodies to carry out economic activities requiring a strong social commitment? Are these activities to be carried out by co-operatives? • Maybe... But, most relevant: • The co-operative model for the supply of economic activities generates more and better social capital than other business models. Social Economy institutions, apart from offering a product or service, generate DEVELOPMENT.

  18. An business model based on people requires human growth in order to be fed back. Social economy would be the model to opt for if new models to increase impact and efficiency in social development of countries are sought. Social economy is not social because of its commitment with the final user or the aim of its activities, but also in terms of being an engine for social capital.

  19. SOME QUESTIONS TO THINK ABOUT • Lack of indicators, we need to identify valid ones, but DANGER: to focus only on that we could measure, forgetting the main questıon WHAT IS THE KEY QUESTION/ASPECTS to contribute to a real and SYSTEMATIC CHANGE of societies? • Not only formal,superficial grassroots change • Not only looking for the direct consequences or direct effects but also the unexpected ones • Long term vision, never on the short term • We could observe(look trough) the REALITIES that are generatıng SOCIAL CAPITAL, • What are they doing? • How are they working? • Who are involved?

  20. What is found/said: indicators • Policy influence: it has power to spread innovation, social change • Independently replicated:it was good • Long term comittment: it deserved, • Leadership at its sector:it reinforced social work thinking • Support to succes:it was useful • More than one: entrepreneur  group  structure (it generates collective value, beyond the individual) ASHOKA: socıal entrepreneurs- group entrepreneurshıp-cıtızen ınfrastructure • Indirect added value: unexpected (and not even pursued) effects of the co-operative model – apart from being competitive, it genetates democratic values. It is important to validate these unexpected effects and to have indicators in order to consequently pursue these effects CECOSESOLA Barquısımeto – (Venezuela).

  21. What is found/said: indicators from COOPERATIVES • Commitment with the PARTICIPANT, not ony with the target of its activity, with its environment as an engine for the generation of social capital • Provoques EMPOWERMENT of people: as a consumer, as a worker, as ... a citizen • Fosters continuous (lifelong) learning • Participation as a tool for empowerment and democracy rules • Commitment with the community (involvement in local initiatives, look for more than one’s interest, sharıng concerns and acting consequently and in a coherent way) • In a collective way, always plus • Re-investment and entrepreneurship • Based on added value from people, human capital, it provides some rights, not the funds (financial contribution??)

  22. INDICATORS - MEASURE Some reference documents are: • CONSUM Valencian Co-operative social balance • EQUAL RSEcoop project for the implementation of Corporate Social Responsibility in the Catalan co-operative context • EROSKI Foundation, GRI adaptation • Economic report: 10 years of co-operative activities in the Valencian Community • MCC Annual report • CEPES Annual report

  23. Thank you!! Empar Martínez Bonafé emartine@florida-uni.es www.florida-uni.es www.cepes.es www.ecsocial.com www.grupoasces.com

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