Boosting Social Enterprise Development

Boosting Social Enterprise Development

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Author(s):
OECD, EU
21 Apr 2017
Pages:
248
ISBN:
9789264268500 (PDF) ; 9789264268517 (EPUB) ;9789264268494(print)
http://dx.doi.org/10.1787/9789264268500-en

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Social enterprises are long-standing agents of inclusive growth and democratisation of the economic and social spheres, and they have proved resilient to economic adversity all the while addressing socio-economic challenges in innovative ways, re-integrating people back to the labour market, and contributing to overall social cohesion. This compendium derives policy lessons for boosting social enterprises from the analysis of 20 initiatives in several EU member-countries, covering a range of policy areas from legal frameworks, finance, market access, and support structures, to education and skills.

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  • Preface

    The OECD and the European Commission share the objective of building more inclusive economies and societies. By linking economic and social value creation, social enterprises play a key role in making this a reality. They can create new jobs, be a vehicle for efficient and effective service delivery, boost citizens’ participation in their local communities, and turn innovative ideas into action for the benefit of the common good.

  • Foreword

    In October 2015, the OECD Secretariat launched a call through its website, national and international networks, and the European Commission’s Expert Group on Social Entrepreneurship, to collect policies, programmes, and initiatives aiming to support social enterprises. In collaboration with the European Commission, the Secretariat developed a list of criteria, with the goal of selecting policies, programmes, and initiatives that: i) supported social enterprises as defined by the Social Business Initiative; ii) illustrated approaches in the various policy areas of the social enterprise ecosystem; and iii) allowed for a balanced geographical coverage across European Union Member States. Another important criterion was to reach beyond established initiatives and include less well-known or prominent initatives, to further nurture and complement existing work by the OECD, the European Commission and some dedicated networks, such as the Social Enterprise Network. Lastly, cases that could demonstrate both systemic impact in supporting social enterprises effectively, as well as a potential for replication in different contexts, were prioritised.

  • Executive summary

    Inequality and persistent unemployment for vulnerable groups in particular have come to the fore as priority policy issues, not only with respect to social justice but also with respect to economic growth. Social enterprises are longstanding agents of inclusive growth and have proved remarkably resilient in the face of economic adversity. By design, social enterprises address socio-economic challenges in innovative ways and engage citizens to become part of the solution. A survey conducted in 2015 on more than 1000 social enterprises in 9 countries (the SEFORÏS project in which the OECD LEED participated as well) showed registered revenues of more than EUR 6.06 billion, provision of services and products to 871 million beneficiaries, job creation - particularly for people with disabilities or migrant backgrounds - upwards of about half a million people, and job placement for approximately 5.5 million people.

  • Main trends in social enterprise development

    This part underlines the importance of creating an enabling ecosystem that can effectively support social enterprises, and briefly presents the policy areas in which policy makers can act to this end. It discusses eight key lessons emerging from the policies, programmes, and initiatives analysed, and examines the challenges faced along with the policy approaches used to address them successfully. Finally, it includes an overview grid presenting the main features of each case, such as, the funding sources, the policy area and approach, and the key success factors and challenges. Finally, it features a one-page summary of each case.

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  • Expand / Collapse Hide / Show all Abstracts Good practice examples for social enterprise development

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    • Social Innovation Factory: An early-stage business support structure, Belgium (Flanders)

      The Social Innovation Factory is a support structure for early-stage businesses support that also raises awareness about social innovation and social entrepreneurship. The chapter describes the organisation’s objectives, rationale and activities. It presents the challenges faced in implementing its programmes and the impact achieved to date. It concludes with the lessons learnt and the conditions for transferring this practice to another context.

    • SAW-B: A training and advisory services federation, Belgium (Wallonia-Brussels)

      SAW-B is a federation of social economy actors, as well as a research and training centre, offering integrated support to social enterprises and shaping, through lobbying activities, an institutional landscape favourable to their development. This chapter presents the organisation’s objectives, rationale and main activities, along with the impact achieved and the challenges faced. It concludes with the lessons learnt and conditions for transferring this initiative to other contexts.

    • The National Strategy for the Development of Social Entrepreneurship, Croatia

      The National Strategy for the Development of Social Entrepreneurship aims to establish an enabling and coherent policy framework for social-enterprise development in Croatia. This chapter describes the Strategy’s objectives, rationale and activities. It presents the challenges faced in its implementation and the impact achieved so far. It concludes with the lessons learnt and the conditions for transferring this practice to another context.

    • Copenhagen Project House (KPH): An incubator for social start-ups, Denmark

      Copenhagen Project House (KPH) is a local incubator facilitating the entrepreneurial process from idea to action. The underlying business model of the KPH incubator rests on a robust multi-partner mentoring scheme and strong partnerships. This chapter describes KPH objectives, rationale and activities. It also presents the challenges faced in implementing the scheme and the impact achieved. It concludes with the lessons learnt and conditions for transferring this practice to another context.

    • Alter'Incub: A regional incubator, France

      Alter’Incub is the first regional incubator driving the creation of social enterprises in France. It develops a multi-stakeholder response to unmet local needs and establishes an enabling the ecosystem for social enterprises. This chapter presents the objectives and rationale behind Alter’Incub’s creation, along with its main activities and impact. It discusses the challenges faced when implementing the support structure, the lessons learnt and the conditions for transferring this approach to other contexts.

    • The Law on the Social and Solidarity Economy (SSE), France

      The French Law on the Social and Solidarity Economy (SSE), adopted in 2014, provides an enabling and encompassing regulatory framework to better support traditional SSE organisations and new social enterprises. This chapter describes the objectives and rationale of the Law, along with its main measures. It identifies some strengths, weaknesses, opportunities and threats that have come to light, despite its recent implementation. Finally, it features some lessons learnt and conditions for potential replicability.

    • Financing Agency for Social Entrepreneurship (FASE): An intermediary for hybrid financing, Germany

      The Financing Agency for Social Entrepreneurship (FASE) is a financial intermediary providing hybrid financing to social enterprises. It uses a highly tailored, “deal-by-deal” approach in order to design innovative financing schemes that match the needs of social enterprises and impact investors. FASE objectives, rationale and key activities are presented together with the challenges faced in implementing the scheme and the impact it has achieved to date. Lessons learnt and conditions for transferring this practice to another context are also included.

    • PHINEO: A financial intermediary, Germany

      PHINEO is an intermediary providing market intelligence relevant to non-profit organisations and social enterprises seeking financing, as well as to social investors seeking a project. It also raises awareness of impact measurement as a useful function in substantiating and improving non-profit activity. This chapter describes the objectives and rationale of this intermediary, along with its key activities. It presents the impact it has achieved and the challenges it has faced. It concludes with the lessons learnt and conditions for potential replicability in other contexts.

    • Clann Credo: A social finance provider, Ireland

      Clann Credo is a social-finance provider that mobilises private capital and provides retail loans to social enterprises. It aims to increase access to finance and strengthen the social investment market in Ireland. This chapter describes the organisation’s objectives and rationale, and provides an overview of its key activities. It also presents the impact and challenges faced, and features a discussion of the conditions for transferring this practice to another context.

    • JEREMIE Sicily ESF Social Finance: A microfinance scheme, Italy

      JEREMIE European Social Fund Social Finance is a financial instrument designed to improve access to finance for small and medium-sized enterprises and social enterprises in Sicily through a microfinance scheme. It aims to support the creation and development of organisations that promote the economic empowerment of vulnerable workers by facilitating access to the labour market. This chapter presents JEREMIE’s objectives, rationale and key activities, together with the challenges faced in implementing the scheme and the impact achieved. It also features the lessons learnt and the conditions for transferring this practice to another context.

    • Social Impact Factory: A business-support structure, Netherlands (the)

      The Social Impact Factory is a business-support structure that aims to spur social enterprise creation and embed more socially responsible behaviours in businesses. It fosters multi-stakeholder and cross-sectoral partnerships to tackle social challenges. This chapter describes the organisation’s objectives, rationale and activities. It also presents the challenges faced in implementing the structure and the impact achieved. It concludes with the lessons learnt and conditions for transferring this practice to other contexts.

    • ES Fund TISE: A loan fund, Poland

      ES Fund TISE is a pilot programme providing loans to social enterprises coupled with free advisory services. The programme aims to increase social enterprises’ access to finance, which is necessary to the expansion of their activity. This chapter describes the programme’s objectives and rationale, together with its main activities and structure. It presents the challenges faced in implementing the scheme and the impact achieved. It concludes with the lessons learnt and conditions for transferring this practice to other contexts.

    • Portugal Inovação Social: An integrated approach for social innovation, Portugal

      Portugal Inovação Social acts as a market catalyst promoting the social investment sector in Portugal through the mobilisation of EU structural funds. Its funding programmes support innovative financing instruments tailored to the needs of both social enterprises and investors. This chapter describes the institution’s objectives, rationale and activities. It also presents the challenges faced, the lessons learnt and the conditions for transferring this practice to other contexts.

    • Barcelona City Council Decree for Socially Responsible Public Procurement

      The Barcelona City Council Decree for Socially Responsible Public Procurement was designed to tackle the city’s increasing unemployment, in particular of people with the most pressing socio-economic needs. Through a participatory process, binding social clauses for public procurement contracts were developed and adopted to facilitate social enterprises’ access to market. This initiative describes the Decree’s objectives and rationale, as well as its features. It presents the challenges faced in developing and implementing the Decree, and the impact it has achieved so far. It also includes lessons learnt and conditions for transferring this practice to another context.

    • El Hueco: A local incubator, Spain

      El Hueco is a co-working space and social-enterprise incubator. It aims to create a favourable environment for the creation and development of social enterprises, particularly in sparsely populated areas (SPAs) such as the Soria province of Spain. This chapter describes the organisation’s objectives, rationale and activities. It presents the challenges faced in implementing the structure and the impact achieved. It concludes with the lessons learnt and conditions for transferring this practice to other contexts.

    • Big Potential: An investment readiness programme, United Kingdom

      The Big Potential programme provides grants for investment readiness support, and raises awareness of investment approaches for voluntary, community and social enterprises in England. This chapter describes the programme’s objectives, rationale and activities, the challenges faced in implementing the scheme, and the impact achieved. It includes lessons learnt and conditions for transferring this practice to another context.

    • The Partnership for Supporting the Social Enterprise Strategy, United Kingdom, Scotland

      The Partnership for Supporting the Social Enterprise Strategy is a multi-level framework, designed and supported by the Scottish Government. It aims to develop the capacity of social enterprise intermediaries to provide a holistic “peer support” network, and enhance the sector’s collective influence and contribution to policy development. This chapter describes the Partnership’s objectives, rationale and activities, as well as the challenges faced in implementing the scheme and the impact achieved so far. It concludes with the lessons learnt and the conditions for transferring this practice to another context.

    • Specialisterne & SAP: A partnership for access to markets, multiple countries/ Denmark

      Specialisterne and SAP have established a partnership that aims to harness the special skills of people with autism, and provide them with training and work-integration opportunities. To this end, they have implemented the “Autism at Work Programme”. This chapter describes the partnership’s objectives, rationale and key activities, together with the challenges faced in implementing it and the impact it has achieved to date. It concludes with the lessons learnt and the conditions for transferring this practice to another context.

    • Junior Achievement Europe: An education network, multiple countries

      Junior Achievement Europe (JA Europe) designs and implements educational programmes that aim to foster an entrepreneurial mindset and skills among students. This chapter describes the objectives, rationale and activities of JA Europe. It presents the challenges faced in implementing its programmes and the impact achieved to date. Finally, it highlights the lessons learnt and the conditions for transferring this practice to another context.

    • NESsT: A multipronged support structure, multiple countries

      NESsT supports and invests in social enterprises that use market-based solutions to create opportunities for viable employment and income generation in Central and Eastern Europe, and South America. The description presents the objectives, rational and key activities of NESsT. It also discusses the challenges faced and the conditions for transferring it to another context.

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