Practical Solutions for Social Enterprises and Municipalities: Tallinn City Example

1. Practical solutions of cooperation betweenSocial Enterprises and municipalities;Tallinn city example“Socialentrepreneurship – businessmodels and cooperation” 18 May2016, Riga Raivo Allev Deputy Head; Manager of Development and Administrative Division Tallinn City Government Social Welfare and Health Care Department

2. ‘Social enterprise’ – what does it mean for Estonians? Definition encompasses a wide circle of meanings and is quite flexible Social purpose forms the heart of a definition of social enterprise, other important aspects include having a sustainable business model and the requirement to reinvest surpluses Services provided by social entrepreneurs vary from telemarketing to support services for people with special needs and to activating local communities by renovating and finding new use for old manor houses Raivo Allev

3. Social enterprices in Estonia There is no special legal form for social enterprises in Estonia. Most ofsocial enterprises registered as non-profit associations or foundations. There are also a few limited liability companies identifying themselves as social enterprises Raivo Allev

4. Local government’s interest for cooperation with social enterprises Are SEV forgovernmentalorganizationsmore „sexy“ thanNGO-s? InEstoniancontext „Sexythings“: Businesssuccess – notonlyapplyforpublicmoneybutsustainablebusinessmodelisprofitable Cleardeclarationofreinvestmentofsurpluses Orientedto solve socialissuesinsociety/community Raivo Allev

5. Local government’s interest for cooperation with social enterprises from the aspect of social welfare and health care Municipalityisinterestedincooperationwithsocialenterprises, in order tomaintain a normalhumanmanagement, a wayoflifethatdoesnotincreasethemarginalization, topreventpeoplestayinghome and becomingisolated, Inclusiveness, Reducingloneliness Socialinteraction - thestrongeroneshelptheweakerones, increasingsocialcohesion weliketheideaofCausingtheexperienceofsuccess, -  I participateinthework, earningmoneyisnotthefirst and primarygoal Keeping upself-esteem, senseofnecessity - in order topreventinstitutionalisation, animportantaspectofmentalhealth Preventingdepression, helpingto keep positiveattitudetolife, participationinsociety - reducingspending on healthcare, suicideprevention, Raivo Allev

6. Cooperation between Tallinn City Enterprise Board and Tallinn Support Centre “Juks” (city welfare agency) Startedin 2011 Tallinn Tourist InformationCentresellstheproductsmanufacturedbytheDisabledYouth. Potentialsalesarticles- feltedsoaps, hand-paintedceramicvases, trays, mugs, mugand dishsets, hand-painted silk scarves Customers love theideathatbypurchasingtheysupportyoungpeoplewithdisabilities Raivo Allev

7. Raivo Allev

8. Estonian Social Enterprise Network (SEV) • Objective: to increase the number, capacity and impact of social enterprises in Estonia • Membership-based public benefit association • From 19 social enterprises on 2012 to 49 social enterprises as members (as of April 2016) • National Development Plan for Civil Society 2015-2020 includes social entrepreneurship among its priorities • Its leader is a member of European Commission´s Expert Group on Social Entrepreneurship (GECES) Raivo Allev

9. What the SEV network does to support social enterprises in Estonia? As a member organisation: informing and inspiring members, creating and mediating cooperation, training and consultation opportunities, advising on the evaluation of social impact. As an advocacy organisation: representing members` common interests, collaborating in creation and development of financial and nonfinancial support arrangements. As a developer and spokesperson of the field: supporting educational activities and research, participating in international cooperation, informing general public about social enterpreneurship. Raivo Allev

10. Social Enterprise – legal form SEV aim is to get social enterprise as separate entity to be accepted at the Estonian Central Commercial Register. Currently, social enterprises (and their annual accounts) cannot be distinguished from other forms of organisations in the Register. Raivo Allev

11. Influencing social enterprice „ecosystem“ • National Development Plan for Civil Society 2015-2020 (process in 2014-2015, social enterprise + social innovation + public services included) • New Public Procurement Law (process in 2014-2016, current draft very much social enterprise friendly) • Political platforms for parliamentary elections (2014) and new government´s coalition agreement (2015), Social Innovation Task Force at Government´s Office (2016+): social enterprise development included • Income Tax Law 2014 (when implemented in 2015, social enterprises remained in public benefit list) Raivo Allev

12. Estonian Social Enterprise Network (SEV) Pilotingdevelopmentprogramsfortheleaders and teams: • Actionlearninggroupsforleadershipdevelopment (2014+) • Export-orientedproductdesignforwork-integrationsocialenterprises (2015) • Volunteerrecruitmentforsocialserviceproviders (2014-2015) • Businessmodeldevelopmentfor NGOs (2015) • Publicservicedesign (co-creationapproach) (2014+) • Mini-investment grant twice a yearforthemembers • Standardisedimpactmapping: methodology, reports, portal Moredetailedinformation: JaanAps leaderoftheEstonian Social Enterprise Network info@sev.ee Raivo Allev

13. Merimetsa Support Centre Objective: welfare and employmentofpeoplewithseverementaldisabilities • 145 peoplereceivingservices, incl 30 peopleinsupportedworkplaces (2015) Incomemodelisverydiverse: • Contractedpublicservicesforthetargetgroup • Textileproduction (export 85%), packagingservices, handicraft, shopofownproducts • Supportof City of Tallinn Moreinformation: info@merimetsa.ee Raivo Allev

14. Merimetsa Support Centre Raivo Allev

15. Estonian Blind Masseurs Association Objective: tohelp visually impaired acquire a suitable profession and start working on the open labour market or in a massage centre supported by theAssociation • 19 masseursworking at Association´sowncentre (2015) • 63 masseurstrainedintotal Main incomesources: • Salesrevenue (individualvisits, organisationalclients) • Contractedpublicservices Moreinformation: info@pimemassoorid.ee Raivo Allev

16. Estonian BlindMasseursAssociation Raivo Allev

17. NGO RuaCrew aim istopreventsocialproblems and delinquencyamongyoungpeople and tocontributesolvingthoseproblems services : supportpersonservice, groupworktopromotesocialskills, workshopstopreventbullying and addictivesubstanceabuse, parentingsupport and educationgroups, experttraining and advice, socialcounseling, rehabilitationserviceforjuvenileoffenders and childrenwithdisabilities, communityevents and activities, summer schoolforyoungpeople RuaCrewoperates on a voluntarybasis, socialentrepreneurshipisrelatedtothesupplyoftraining, salesofserviceforthemunicipalities and schools Moreinformation: info@ruacrew.ee Raivo Allev

18. Skill Mill PROBLEM: In Estonia the state spends for dealing withunder-age juvenile delinquentsalone morethan 13.7 million euros per year SOLUTION: EnvironmentalBasedSocialEnterprise; offering paid job opportunities inenvironmentalmaintenanceservicestoyoungex-offendersaged 16-24 Goalisto assist ex-offenderstothelabour market byprovidingmentoring and counsellingduringenvironmentalmanagementwork. Theworkwillbeprovidedthrough a socialenterprisewhichwill serve asaninnovativemodelforreducingthe need forsocialservices Raivo Allev

19. Skill Mill`s social value Fortheyouth: provides paid jobs to exoffenders Gives them a chance toimprovetheirlives Forsociety/Community: reducescrime maintainsenvironmentand publicspace socialimpactthatcanbemeasured Contacts: Katri-Liis Reimann, info@theskillmill.org www.theskillmill.org, FB: theskillmillestonia Raivo Allev

20. Silver Linings cooperation project project will integrate services for young ex-offenders aged 16-24 in 2 cities (Newcastle, UK and Tallinn, Estonia) with a Social Enterprise (The Skill Mill) providing Intermediate Labour Market jobs. approach has been developed in Newcastle over the past 4 years, is an example of the quadruple helix model; bringing government, academia, business and citizens together in partnership. model will be extended to bring specific support directly from within the social enterprise in a one-stop shop approach Raivo Allev

21. Paldies! Panākumi nākotnē Thank You ! Good luck! Raivo Allev Raivo.allev@tallinnlv.ee Raivo Allev