the need for the development of support services for social cooperative enterprises
TRANSCRIPT
3rd INTERNATIONAL CONFERENCE ON QUANTITATIVE AND QUALITATIVE METHODOLOGIES IN THE ECONOMIC
AND ADMINISTRATIVE SCIENCESATHENS MAY 23-24, 2013
The need for the development of support services for Social
Cooperative Enterprises
Antonios VorloouMinistry of Labor, Social Security and Welfare
• Range of concepts in the different EU Member States:– solidarity economy– third sector
• Differences in institutional frameworks and terminologies
• Inspired by common values such as:– solidarity– social cohesion– Supremacy of the individual over capital– social Responsibility– Democratic decision-making
Social Economy
Social Economy
Participants are not driven by profit seeking,but
profits are reinvested for the benefit of the business and society.
It's a different way of doing businesswith the general interest, economic development, social
dimension and the democratic functioning
Social Economy in the EU
It employs over 11 million workers
6% of the total
France: 10% GDP and 12% employment
Social Economy in Greece
• High levels of unemployment• Especially in vulnerable parts of the population
Social Economy
• Job creation• Promotion of social cohesion• Promotion entrepreneurship in vulnerable
groups
Law on Social Economy and Social Entrepreneurship
Social Cooperative Enterprise
creating “socially oriented entrepreneurship”
L. 4019/2011
• Urban cooperative of social purpose with limited liability of its members which produces or trades products or services
• A business that is managed equally by the members, and its operation is based on collective welfare while pursuing the profit resulting from actions that only serve the public interest.
What is a Social Cooperative Enterprise
It is a
• one member - one vote regardless of the number of cooperative shares
• Distribution of profits annually, as follows:• Reserve up to 5%
• Bonus to workers up to 35%
• Re-investment for job creation and the business activities (social purpose) at least 60%
General Characteristics
Social Purpose
• Profit is a means to achieve the social purpose rather than the purpose of Koin.S.Ep.
• It is fulfilled by:– Selling products or services that have a social
benefit and also bring profits– Spending the profits for providing products or
services which create social benefit without income
Social Innovation
• Instruments: new ideas (products, services and business models) that simultaneously meet more effectively the needs of society• Purpose: To create new social relationships or
collaborations.• These innovations not only benefit society
but also enhance the ability of society to act.
Social Innovation
• Muhammad Yunus (Bangladesh)• Nobel price for Peace• Grammen Bank• Microcredit to non bankable
persons
Example of Social Innovation in Greece:• Social Cooperatives for mentally ill• Parents Cooperative of Chalandri (KoinSEp)
Social Franchising
• Its aim is to replicate a successful business model of social entrepreneurship - Innovative idea
• Reduce cost and the risk for model development
Categories Social Cooperative Enterprises (Koin.S.Ep.)
• Inclusion
• Social Care
• Collective and Productive Purpose
Inclusion• Aimed at integration into economic and social life of persons
belonging to vulnerable population groups:
– people with disabilities– dependent or detoxified from substances people– seropositive– prisoners / ex-prisoners– juvenile offenders
• In a Inclusion Koin.S.Ep. at least 40% of workers should belong to vulnerable population groups
• Establishing requires at least seven persons.
Social Care
• Aimed at producing and providing products and services of a social - welfare in specific population groups such as:– the elderly,– infants,– children,– people with disabilities and– people with chronic diseases
• Establishing requires at least five persons.
Collective and Productive Purpose
• Aim at promoting the local and collective interest, employment, strengthening social cohesion and local or regional development.
• Production of goods and services in areas such as:– culture– environment– ecology– education– public utility– local products– conservation of traditional activities and professions
• Establishing required at least five persons.
KoinSEp registered
319
77
KoinSEp
InclusionSocial CareCollective and Productive Pur-pose
Questionnaire
• In order to determine the needs of the emerging sector, the Ministry of Labor has distributed a questionnaire to the registered KoinSEp so as to identify the maturity of the business models being developed and implemented.
Questionnaire
• Included:– General info• Number of members• Sector of Activity
– Business Model• Type of Activity• Resources (human and other)• Clients (identified, who, marketing)• Income (state, private, %, pricing policy)• Social impact (measured, how)
– Other needs
Responses
• 35 questionnaires answered• Most from productive purpose• Most rely on state aid for launching and initial
stages and gradually directed to private sector income
• Business models not well developed• Clients roughly identified• Marketing policy not developed
Strategic Vision
• Social Economy and Entrepreneurship will contribute to sustainable economic development at the local, regional and national level strengthening social cohesion.
Purpose of Strategic Plan
• Rapid activation of the Ecosystem of Social Economy and Entrepreneurship, to create a favorable environment for the development of Koin.S.Ep.
Obstacles
• Lack of appropriate and accessible support services for Social Entrepreneurs
• Lack of specialized grant programs for starting up Koin.S.Ep.• Unfavorable economic environment for the development of
financial tools to assist Koin.S.Ep.• Administrative and other obstacles to the development of
Social Entrepreneurship• Low awareness of the new institution and the value of social
entrepreneurship
Strategy• Provide a framework of support and development of
Koin.S.Ep.• Provide the necessary start-up capital to support Koin.S.Ep. at
their first steps.• Development of financial support services in the short and
long term, in order to further expand and develop Koin.S.Ep.• Removing legal and administrative barriers and creating
favorable conditions for the development of Koin.S.Ep.• Informing local communities about the benefits of social
entrepreneurship• Developing transnationality actions to better utilize the
experience of other Member States
Axes
• 1st: the support of the social economy by creating central and regional support mechanisms
• 2nd: the financial support with grants for Koin.S.Ep.
• 3rd: the financial tools to strengthen and expand Koin.S.Ep.
1st AxisActivity 1:
Central Support Mechanism
Activity 2: Observatory of SE
and SE
Activity 3: Regional Support
Mechanisms
Activity 4: Complementary actions by
MoL services
• Development of tools / methodologies• Training of Multipliers• Supporting national networks
• Counseling / Mentoring• Support pre start-up / erasmus• Incubator services • Networking (Conferences / Fora)• Publicity
• Policy support for SE• Publicity - Workshops• Transnational Cooperation
Axis 2
Activity 6:Vouchers for
incubator type services
Activity 9: Grants on the basis of
jobs created
Activity 5: Support for the
creation of KoinSEp(pre start-up)
Activity 8: Grant for the initial operational plans of
Koin.S.Ep. for acquisition of shares by employees
Unified call for proposals
Activity 7: Training
Axis 3
Activity 10: Complementary Repayable Grant
Activity11: Preparatory actions for the development of a
Micro Finance Institution
• On-line Application
MoL servicesTechnical Steering
Committee
Consulting support
Technical Support
Activity 1: Central Support
Mechanism
National Level
Activity 3: Regional Support
MechanismsActivity 6:
Vouchers for incubator type
services
Activity 2: Observatory of SE
and SE
Regional Level Activity 9: Grants on the basis of jobs
created
Activity 5: Support for the
creation of KoinSEp
(pre start-up)
Activity 10: Complementary Repayable Grant
Activity11: Preparatory actions for the development of a
Micro Finance Institution
Activity 4: Complementary actions by MoL
services
European Commission
Activity 8: Grant for the initial operational plans of
Koin.S.Ep. for acquisition of shares
by employees
Δράση 7: Κατάρτιση
εργαζομένων σε ΚοινΣΕπ
Private Providers of Support
Services
Axis 1
Axis 2
Axis 3
Unified call for proposals
• Development of tools / methodologies• Training of Multipliers• Supporting national networks
• Policy support for SE• Publicity - Workshops• Transnational Cooperation
• Counseling / Mentoring• Support pre start-up / erasmus• Incubator services • Networking (Conferences / Fora)• Publicity
Consultation
• Strategic Plan submitted for consultation until 15 March 2013, in following web site:
• http://195.167.92.159:8443/diaveykeko/ΔημόσιαΔιαβούλευση.aspx
• Several suggestions have been integrated into the plan
Thank you