Role of LAGs in social entrepreneurship the Czech Republic

1. Theproject “InnovativeSupport to employment of Rural marginalizedgroups – SyneRgi” issupportedbyVisegradInternationaFund Training of trainers “Role of LAGs in employmentmarginalizedgroups” Role ofLAGs in socialentrepreneurshipthe Czech Republic Petra Francová, Czech Republic Montenegro, 29.-30.5.2019

2. Public bodies in chargeof SE • Ministry of Labour and Social Affairs • Ministry of Industry and Trade • Ministry of Regional Development • Agency for Social Inclusion • Government Council for NGOs • labour offices • regional public structures • municipalities

3. Municipalities and social entrepreneurship • a long-lasting discussion in the Czech Republic about independence of social enterprises from public authorities • Can municipalities have a majority stake in social enterprises? • Can municipalities be eligible beneficiaries in ESF calls for proposals?

4. Social farming (1) • employment of vulnerable people • social services – social and work integration • educational activities – know and understand the countryside and nature

5. Social farming(2) • cooperation of social workers and farmers • agricultural sustainability – protection of soil, organic farming • economic sustainability – social entrepreneurship • respect to capabilities and limits of target groups • http://socialni-zemedelstvi.cz/

6. Social farming(3) • active leaders • support of Ministry of Agriculture • Association of social farming in CZ • cooperation with LAGs • project Social farms in V4 countries www.socialfarm.gak.hu • possibility of transnational projects?

7. Community supported agriculture • relationship between farmers and consumers • a group of people finds theirownfarmer • pre-pay the food for the season • share the risk when there is a shortage • boxes with farm products

8. The role of LAGs in social entrepreneurship • community led local development (CLLD) in rural areas (based on LEADER) • principle of partnership and cooperation of public, private and NGO sectors at local level • legal status of NGOs • National network of LAGs (179 members)http://nsmascr.cz/en/

9. LAGs and EU funds • intermediaries of EU funds (ESF, ERDF, RDP) if certified • adequate administrative capacity (manager, staff, rules for operation) • strategic plans (agreed by Ministry of Regional Development) • social entrepreneurship should be in strategic papers • investment (ERDF) + non-investment (ESF)

10. LAGs´ calls for proposals • two stages: • for LAGs • final beneficiaries • investment CfP + non-investment CfP • project + business plan + financial plan

11. MANAGEMENT IN SOCIAL ENTERPRISES IN CZ

12. What is different • External issues: • access to finance • access to market • public procurement • Internal issues: • imbalance between social and business approach • team structure • gender • diversity management of disadvantaged people

13. Access to finance • limited access to finance • the most important source – grants from structural funds – both ESF and ERDF • Grants + consultancy from several private banks: ČSOB, Českáspořitelna (ERSTE group) • access to loans is very limited (no credit unions, no ethical banks) • new ESF loans from July 2019

14. Access to market • many SE lack a business approach • small experience in sales and marketing • weak customer approach – rarely use CRM (customer relationship management SW) • very limited help to social enterprises in overcoming the barrier • „social“ business is sometimes perceived as suspicious • how to communicate being a „social“ business

15. Public procurement • not enough experience • a relatively new approach that is perceived as complicated • growing awareness about social clauses • Agency for Social Inclusion promotes a 10 % condition – employment of 10 % long-term unemployed people in a subject matter of a tender • MoLSA and Ministry of Agriculture are among good practice examples

16. Imbalance between social and business approach • business people lack social competences and NGO people lack business approach • NGO background prevails • it is difficult to change their mindset • recommendation to employ a business person • „The Clash of Civilizations“ – it is difficult to understand each other

17. Team structure • important role of a founder and leader with a strong social motivation • a key role of a shift foreman • provision of a psychosocial care • PR/marketing manager • co-operation with social services provider is recommended

18. Challenges of social enterprises • marketing + using social aspects in marketing • financial management • management systems are weak, not well structured • investment – lack of resources • disadvantaged workers • sustainability

19. Positive trends • growing awareness of responsible way of life incl. responsible purchasing • people from the NGO sector improve their business skills • better media coverage • more interest in public procurement • Bill on social entrepreneurship? • civil society is getting stronger - positive trend in the society

20. Thankyouforyourattention. petra.francova@p-p-p.cz P3 – People, Planet, Profit o.p.s. Václavské nám. 21, 110 00 Praha 1 Czech Republic