Role of Social Enterprises in Employment Generation in CEE And The CIS

- National Study in Serbia –

Marija Babovic

Main findings

• Social entrepreneurship does exist, despite unfavourable framework.

• Non-profit sector is dominant. • Many organisations depend of donor

support. • There are new markets. • There are new and undiscovered

fields

Approach to SEs sectorSocial context (labor market, institutional and legal framework, economic conditions, profit sector, socio-cultural capital

Demand side:•Marginalized groups•Local community•Global society

Supply side:Diversity of organizational forms - more embryonic than developed SEs

Vulnerable groupsGroups Approximate size Unemployment

rate

Refugees from Croatia and BiH 107 000 32%

Internally displaced persons from Kosovo

200 000 32%

Returnees from Western Europe unknown -

Persons with disabilities 760 000 -

Roma population 108 000 – 400 000 39%

Unemployed older than 50 190 000 -

Different categories of women: with low education, self-supporting mothers, women from rural areas, victims of violence, victims of trafficking

unknown -

Present SEs formsLegal and functional criteria

Legal formTypes

Association of citizens - Voluntary organizations- self-help organizations- Religious organizations- Microfinance organizations

Cooperative - agricultural cooperatives- women’s cooperatives- social cooperative

Limited liability company

- SME Agency- Incubator- Spinn off enterprises

Joint stock company Spinn off enterprises

Vocational enterprises for handicapped

Vocational enterprises for handicapped

Voluntary organizations1. self-help organisations incorporating beneficiary

group

2. socially (externally) oriented organisations - oriented towards external goals and groups:

a) organisations oriented towards strictly defined target

group

b) organisations oriented towards several target groups or towards general local development

Example of self help organizationMassage saloon of Belgrade Association of Blind Persons

Examples of socially oriented organizations

Agronetwork

Microfins

Cooperatives

1. Agricultural cooperatives

2. Women's cooperatives, created by efforts of women's NGOs

3. Social cooperatives, created to economically and socially integrate extremely marginalized groups of persons with disabilities

Social cooperative “Vivere”

Enterprises for vocational training and employment of persons with disabilities

Protective institutional framework

Small number of succesfull, privatized

Majority faces typical problems of untransformed social sector:– poor management – poor level of training and the lack of motivation of

employees– technological obsoleteness – activities that generate operating losses– physical conditions for work not adapted to persons with

disability

Social entrepreneurship within forms of enterprises

• Spin-off enterprises of voluntary organizations

• SME agencies

• Business incubators

Main obstacles and potentials

Obstacles• Unfavourable legal

framework • Low level of awareness

about SEs potentials and posibilities among all stakeholders Prevailing of traditional model of solidarity

• Low aspirations of profit sector to develop interests in social economy

Potentials

• High level of needs on demand side (marginalized groups)

• Experienced, flexible, inovative part of third sector

Priorities: Creating more favorable legal framework Promoting SEs among third sector

organizations with adequate potential – focusing mostly on organizations that can directly employ members of vulnerable groups

Spreading information on good practices among profit sector, third sector, state actors, local communities and general public