BOOSTING SOCIAL ENTREPRENEURSHIP AND SOCIAL ENTERPRISE ... Boosting Social Entrepreneurship and Social

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  • BOOSTING SOCIAL ENTREPRENEURSHIP

    AND SOCIAL ENTERPRISE DEVELOPMENT

    IN LITHUANIA

    In depth-policy review

  • Boosting Social Entrepreneurship and

    Social Enterprise Development in Lithuania

    IN-DEPTH POLICY REVIEW

    Key words: social entrepreneurship; social economy; social enterprises; social impact; social innovation;

    local development; policy ecosystem.

    JEL codes: L31, L33

    This review provides an in-depth analysis of the Lithuanian policy ecosystem in place for

    social entrepreneurship and social enterprises. It identifies the country’s key strengths and

    challenges and provides policy recommendations to support the development of a stronger

    policy ecosystem for social entrepreneurship and social enterprises. Key policy issues

    analysed include: raising awareness and clarifying the conceptual framework (Chapter 2);

    coordinating policy and legal frameworks (Chapter 3); enhancing the role of social enterprises

    in public procurement (Chapter 4); promoting social impact measurement and reporting

    (Chapter 5); and improving their access to finance (Chapter 6).

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    BOOSTING SOCIAL ENTREPRENEURSHIP AND SOCIAL ENTERPRISE DEVELOPMENT IN LITHUANIA © OECD 2019

    This work is published under the responsibility of the Secretary-General of the OECD. The opinions

    expressed and arguments employed herein do not necessarily reflect the official views of OECD member

    countries or the European Union.

    Authorised for publication by Lamia Kamal-Chaoui, Director of the Centre for Entrepreneurship, SMEs,

    Regions and Cities, OECD.

    This document as well as any statistical data and map included herein are without prejudice to the status

    of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the

    name of any territory, city or area.

    This document was produced with the financial assistance of the European Union.

    Series: OECD LEED Working Papers

    Photo credits: iStock.com/paulrommer

    © OECD/European Union, 2019

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    Please cite this publication as:

    OECD/EU (2019), “Boosting Social Entrepreneurship and Social Enterprise Development in Lithuania, In-

    depth Policy Review”, OECD LEED Working Papers, 2019, OECD Publishing, Paris.

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    BOOSTING SOCIAL ENTREPRENEURSHIP AND SOCIAL ENTERPRISE DEVELOPMENT IN LITHUANIA © OECD 2019

    Acknowledgements

    This review was produced by the OECD Centre for Entrepreneurship, SMEs, Regions and Cities

    (CFE) led by Lamia Kamal-Chaoui, Director, as part of the Programme of Work of the Local

    Economic and Employment Development Programme. It was realised in collaboration and with

    the financial support of the Directorate-General for Employment, Social Affairs and Inclusion of

    the European Commission. It is part of a series of in-depth policy reviews on “Boosting social

    entrepreneurship and social enterprise creation”.

    The review was co-ordinated by Lou Aisenberg (Policy Analyst) and Antonella Noya (Head of

    the Social Economy and Innovation Unit) in the Local Employment, Skills and Social Innovation

    Division of CFE led by Karen Maguire, Acting Head. It was drafted by Lou Aisenberg, Stellina

    Galitopoulou (Policy Analyst), Elyssa Majed (Intern) and Antonella Noya, in cooperation with

    Tomislav Rimac (Associate Professor at the Pompeu Fabra University of Barcelona). Irena

    Pranskeviciute, Researcher at the Institute of Labour and Social Research of the Lithuanian

    Social Research Centre, also provided inputs and comments to the report.

    This review benefited from the valuable comments of the Directorate-General for Employment,

    Social Affairs and Inclusion of the European Commission, notably Risto Raivio.

    The OECD Secretariat is also grateful for the support and comments provided by Tomas Lavišius

    and Ieva Žaunierienė from the Ministry of Economy and Innovation in Lithuania. Other key

    public and private stakeholders in the country have also been consulted throughout the process.

    The complete list of organisations met during the study visit, as well as a methodological note

    about this review, are available in Annex B.

    Finally, the authors acknowledge Barbara Cachova for her administrative support and François

    Iglesias for preparing this review for publication.

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    BOOSTING SOCIAL ENTREPRENEURSHIP AND SOCIAL ENTERPRISE DEVELOPMENT IN LITHUANIA © OECD 2019

    Table of contents

    Acknowledgements ................................................................................................................................ 3

    Acronyms ................................................................................................................................................ 5

    Foreword ................................................................................................................................................ 6

    Executive Summary ............................................................................................................................... 7

    Action Plan ............................................................................................................................................. 9

    Chapter 1. Socio-economic and political context .............................................................................. 13

    Chapter 2. Raising awareness and clarifying the conceptual framework ...................................... 18

    Chapter 3. Coordinating policy and legal frameworks to boost social entrepreneurship

    development.......................................................................................................................................... 25

    Chapter 4. Enhancing the role of social enterprises in public procurement .................................. 31

    Chapter 5. Promoting social impact measurement and reporting .................................................. 38

    Chapter 6. Improving access to finance for social enterprise development ................................... 43

    Annex A. Legal and regulatory evolutions of the framework for social enterprises ..................... 50

    Annex B. Methodological note and programme of the study visit .................................................. 52

    References ............................................................................................................................................. 56

    Figures

    Figure 1.1. GDP per capita .................................................................................................................... 11 Figure 6.1. Diversity of Social Enterprises’ Financing Needs ............................................................... 47

    Boxes

    Box 2.1. Defining civil society, social economy, social enterprises, social entrepreneurship and social

    innovation ...................................................................................................................................... 20 Box 2.2. Junior Achievement Europe .................................................................................................... 21 Box 3.1. The National Strategy for the Development of Social Entrepreneurship (Croatia) ................ 28 Box 3.2. Social Enterprise Strategy (Victoria, Australia) ...................................................................... 27 Box 4.1. Transforming leisure and sport public services into a social business .................................... 32 Box 4.2. Buy Social Corporate Challenge ............................................................................................. 34 Box 4.3. Social Impact Market, the Netherlands ................................................................................... 34 Box 5.1. PHINEO- A financial intermediary raising awareness about social impact measurement ..... 40 Box 6.1. LendMN: a microfinance FINTECH ...................................................................................... 46 Box 6.2. Portugal Inovação Social......................................................................................................... 48

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    BOOSTING SOCIAL ENTREPRENEURSHIP AND SOCIAL ENTERPRISE DEVELOPMENT IN LITHUANIA © OECD 2019

    Acronyms

    AI Artificial Intelligence

    B2B Business To Business

    B2G Business to Government

    CPO Central Purchasing Organisation

    CSO Civil Society Organisation