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Presentation by Agnese Lešinska, Legal Advisor and Researcher of the Public policy centre PROVID at the Social Entrepreneurship Forum in Riga on November 8-9, 2012 For more information visit: http://sefriga.lv/
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What is social entrepreneurship?
Agnese Lešinska
Research project• Aim – to identify legal framework (definitions,
criteria), support instruments (financial, non financial) for social entrepreneurs in 11 EU countries and provide proposals for Latvia
• Team - PROVIDUS and Civic Alliance – Latvia • Authors – Agnese Lešinska, Gatis Litvins,
Rasma Pīpiķe, Inta Šimanska, Oskars Kupics, Katrīne Bušēvica
• Financial support – Soros Foundation - Latvia
Situation in Latvia
• No legal framework for SU• Can be business companies or NGOs (with
limitations)• No specific financial support (f.e.- subsidies
for unemployed or disabled persons)• Mostly dealing with unemployment issues• Start-up companies or not older than 3 years• Small companies, employing 3-5 permanent
staff
What is social entrepreneurship?
- Criteria used in legal frameworks• Mostly to describe WISE
for example – 1) it is entered in the trade register under the said Act; 2) it produces goods and services on a commercial principle; 3) at least 30 per cent of the employees in the company’s employ are disabled persons, or at least 30 per cent of all employees are disabled and long-term unemployed (percentage of placed employees); and 4) it pays all its employees, irrespective of their productivity, the pay of an able-bodied person agreed in the collective agreement, and if no such agreement exists, customary and reasonable pay for the work done. (Finland)
- Criteria used in theories
EMES criteria for SE
• continuous activity producing goods and/or selling services
• high degree of autonomy• significant level of economic risk• minimum amount of paid work• an explicit aim to benefit the community• an initiative launched by a group of citizens• decision-making power not based on capital
ownership• participatory nature, which involves various parties
affected by the activity• limited profit distribution
European Commission “Social Business Initiative”
Social entrepreneur is:• an operator in the social economy • main objective is to have a social impact rather than
make a profit for their owners or shareholders • it operates by providing goods and services for the
market in an entrepreneurial and innovative fashion and uses its profits primarily to achieve social objectives
• it is managed in an open and responsible manner and, in particular, involve employees, consumers and stakeholders affected by its commercial activities
Muhamed Junus – social business
• Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which threaten people and society; not profit maximization
• Financial and economic sustainability• Investors get back their investment amount only. No dividend is
given beyond investment money • When investment amount is paid back, company profit stays
with the company for expansion and improvement • Environmentally conscious • Workforce gets market wage with better working conditions • ..do it with joy ..
Common criteria
• Mission - main objective is to have a social impact or to solve a social problem
• Profit - limited profit distribution• Business model - it operates by providing goods
and a service for the market in an entrepreneurial and innovative fashion
• Management - it is managed in an open and responsible manner and, in particular, involves employees, consumers and stakeholders affected by its commercial activities.
• Appropriate remuneration