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II European Social Entrepreneurship and social finance spring meeting

II European Social Entrepreneurship and social finance spring meeting. Social Entrepreneurship in Sparsely Populated Areas of Europe. 20 and 21 May 2016, SORIA. BELLIS Vasileios, General Director Development Agency of Karditsa. Contents. The profile of the area The position on the map

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II European Social Entrepreneurship and social finance spring meeting

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  1. II European Social Entrepreneurship and social finance spring meeting Social Entrepreneurship in Sparsely Populated Areas of Europe 20 and 21 May 2016, SORIA BELLIS Vasileios, General Director Development Agency of Karditsa Development Agency of Karditsa

  2. Contents • The profile of the area • The position on the map • The size of the area • Basic land zones • The population (size, timelines, distribution) • The productive system and the profile of the primary sector • The causes of low population • The effects • The solutions • The Development Agency (a brief profile) • The spatial interventions • The “Collaboration Incubator” • The “ecosystem” of new cooperatives • The financial tool in favor of Social Enterprises Development Agency of Karditsa

  3. The Profile of the area: Karditsa prefecture, Thessaly Region, Greece Development Agency of Karditsa

  4. The Profile of the area: The size of Karditsa’s Prefecture • Area: 2.670 Km2 • 18,8% of the total area of Thessaly Region • 2% of Greece • Plane area: 47,7% • Mountainous: 44,0% • Semi – mountainous: 8,3% Development Agency of Karditsa

  5. The Profile of the area: Basic land zones • Cultivated areas 41,76% (most of them irrigated, more than 70%) • Pastureland 24,73% • Forests 23,79% • Settlements 4,84% • Water areas 3,52% • Other 1,36% Development Agency of Karditsa

  6. The Profile of the area: The population Development Agency of Karditsa

  7. The Profile of the area: The population timeline Development Agency of Karditsa

  8. The population density

  9. The Profile of the area: The productive system • Karditsa produces the 12% of the Regional GDP • Tertiary sector contribution is 61,36% • Primary 26,15% • Secondary 12,47% Development Agency of Karditsa

  10. The Profile of the area: The primary sector • Main product: Cotton. It covers the 45,5% of the cultivated areas and the 66,7% of the irrigated ones. Karditsa produces the 1/3 of the country’s production. • Other products: wheat, corn, tobacco, vegetables Development Agency of Karditsa

  11. The causes of low population in rural areas: Low income • Small farms (4,5 ha). • The collapse of traditional cooperatives • Spatial base (one in each village) • Top to down establishment • Lack of cooperative education and generally lack of compliance with the 7 cooperative principles • Lack of extension services • Low added value to the local products. Production of commodities and not of “identity products” • Low contribution of the stock farming • Low exploitation (processing) of the products of the primary sector in local level • Main orientation of the farmers: the cultivation of subsidized crops. There is not a market orientation Development Agency of Karditsa

  12. The impact: relocation of the population to the cities • Population in Urban areas (2001): 62,47% • Population in Rural areas (2001): 37,53% • During the decade 1991-2001, the population in urban areas increased 60,5% • The urbanization of the population is continuing • Broader occasions in • Education • Health services • Entertainment • The Split of households • One house in the village for the farming activities and for the living of older members • One house in city for better services and life quality Development Agency of Karditsa

  13. The solutionsThe profile of “Development Agency” • Established on 1989 by Local Authorities • Small initial capital (15.000 Euros) • Focused on Social Interest and to the of the environment protection • Concrete strategy • Strengthening of self-government • Support of collective action and cooperation • Participation of local people from the planning phase to the implementation of the projects (bottom up approach) • Introduction of Innovation and Knowledge to local productive system • Development of the entreprenual spirit • Transparency and publicity of activities • Adoption of flexible organisational schemes (project oriented) • Avoidance of local organisations substitution (complementary function) • Transnational co-operation Development Agency of Karditsa

  14. The spatial interventions • The rural tourism development in Plastiras Lake (Main tool: LEADER) • The development of furniture branch in Mouzaki Area (Main tool: LEADER) • The development of new type cooperatives in the plain (Main tool: Local initiative) Development Agency of Karditsa

  15. The emergence of the new type of cooperatives • Main characteristics: • One homogeneous range of products = one cooperative • Focus on the supply chain and to the market, • Farmers as entrepreneurs and not as officers, • Strong contribution and ownership attitude, • The activity is organized around an accepted and unanimous investment plan • The legal status is not necessarily the “agriculture cooperative” but also “civic cooperative” or “social cooperative” Development Agency of Karditsa

  16. The obstacles • There is not a common law for the social economy and cooperatives. Three ministries are responsible to produce laws on the issue and each one does not recognize or accept the other cooperative types • Even the law of the Ministry of Rural Development and Foods is oriented mainly to the old model. • There are not support schemes to facilitate the establishment of cooperatives (neither in rural areas nor in urban) although there are announced policies, programs and allocated money Development Agency of Karditsa

  17. The “Collaboration Incubator” of Development Agency of Karditsa • The support and the “incubation” of innovative initiatives, as well as the organization of the “debate” on local development issues were the basic characteristic of Development Agency from its establishment. • The “incubation” developed in order to: • Eliminate the start-up costs of the collective scheems of “new type • To cope with the bad reputation of the “old fashion” cooperatives Development Agency of Karditsa

  18. The main services of the “incubator” • Offer of technical support in the initial phase of the cooperation establishment • Organization and support of the awareness campaign (meetings in the villages, press releases, etc) • Hosting of the cooperative for 1-4 years, until the beginning of investment plan • Offer of other simple services (secretary, bookkeeping etc) • Business plan • Support to the investigation of Financial Support Schemes Development Agency of Karditsa

  19. Early examples (1993-1996) • Cooperative bank. It hosted for 2 years. The first 1.100 members of the cooperative subscribed during the hosting period. Now the cooperative bank has more than 7.000 members and play a significant role in the local economy. It became a shareholder of “Development Agency” • Women cooperatives. It was the first attempt to develop the rural tourism in “Plastira’s Lake” mountainous area Development Agency of Karditsa

  20. Current examples • Energy cooperative. Investment plan: 500.000 • Stevia Cooperative: Investment plan: 260.000 • Superfood Cooperative. Investment plan: 460.000 • 2 Social Cooperatives • 2 SMEs networks • 1 cooperative for legumes (pulses) • There is an ongoing debate for the establishment of a “pepper cooperative” • Offer of technical support to the tomato cooperative (elaboration of operational plans) Development Agency of Karditsa

  21. Last positive progress (1) • The effort towards the establishment of a functional network among the “Modern Collaboration Schemes” on the level of Karditsa Prefecture. • The “ecosystem” approach: The “system of cooperatives” based is Karditsa is like an “ecosystem”. There is a process of development of common services and functions: • Education and training • Information dissemination • Concrete technical support offer to local initiatives and groups of people to form their cooperative (through the incubator) • Financial tools • The legal base of “ecosystem” is on investigation Development Agency of Karditsa

  22. Last positive progress (2) • The approval of the project SES – net by the DG Employment, Social Affairs and Inclusion: Social Entrepreneurship Supporting Network - SES Net VP/2013/017/ 0089. A partner with a crucial role is the Cooperative Bank of Karditsa • Its final purpose is to establish a “Fund” in favor of Social Enterprises • The ecosystem acquires a financial tool Development Agency of Karditsa

  23. Investors – Grants Incubator Financial Tool Cooperative Bank Garantees Investment rediness Loans Grants and services Social Enterprises Services fee Grants and Services • Production of products or Services offer • Social Impact The place of the financial tool and incubator in the local ecosystem of Social Enterprises

  24. Thank you for your attention

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