Transcript Communication from the Commission to the European

Communication from the Commission to the
European Parliament, the Council, the
European Economic and Social Committee
and the Committee of the Regions
Social Business Initiative
Creating a favourable eco-system for social
enterprises, key stakeholders
in the social economy and innovation
Key challenges to European policy
development reflected in the SBI
The crisis calls for reengineering our economic and social
fabric, for reprogramming our policies and actions.
 SE are drivers in social innovation
• The guiding principle for further developing the single
market is the social market economy.
 SE need a level playing field with all economic actors
• Cohesion policy instruments are to tackle economic, social
and territorial disparities which the Single Market does not
reduce by itself.
 Many SE have a mission that falls into the ESF scope
of intervention.
• The economic crisis is not just a crisis of economic and
financial management but of values too.
 SE are the vanguard of responsible business
What is a social enterprise?
Definition of social enterprise that tries to take into
account the diversity of economic structures, cultural
traditions and legal frameworks across Europe:
• Trading on the market
• main objective: make a social impact rather than a profit
for owners or shareholders
• uses surpluses mainly to achieve social goals
• governance structures involve workers, customers and
stakeholders
• accountable and transparent, innovative and
entrepreneurial management
Support to social enterprises is on
the EU’s growth and jobs agenda.
Social entrepreneurs are innovators and drive
social change.
• They generate sustainable jobs, facilitate social
and work integration, provide inclusive social
services and improve the quality of social and
health care;
• They introduce efficient ways to reduce
emissions and waste, and to use natural
resources and energy more efficiently ;
• They focus on innovation and the participatory
use of the internet
to generate value in the general interest/
through services/products and/or ways of production
serving social objectives
Public body
Not for profit
organisation/
Social
Economy Citizen sector
organisation
Social
enterprise
Revenue
from
trading on
the market
Revenue from
members, charities,
subsidies, investors
Hybrid
SE
Traditional
private
company
CSR
to generate
shareholder value
primary purpose
Main
source of
income
Any entity engaged in a
regular economic activity,
irrespective of its legal form.
COM Regulation 800/2008
Power &
hierarchy
Traditional
private
company
Profits are
retained in
organisation
or community
Profits
distributed to
shareholders
Use of
surplus
Social
enterprise
Embedded in
a community
Employee
share ownership
Participation &
empowerment
of employees
& clients
Governance
Barriers to start, develop and scale social enterprises that can be
addressed by EU level action
An underdeveloped finance system - throughout the life cycle of a business;
Insufficient investment in education and training for developing the necessary
mindsets, skills and competences
Inadequate support networks and infrastuctures.
Lack of awareness and recognition of the social value which social enterprises
generate
Social Business Initiative
 Improving access to funding for social enterprises
tailored to meet the specificities of social economy actors: a new
framework for social investment funds operating EU-wide and a
new financial instrument (fund of funds).
 Improving the visibility and recognition of social enterprise,
facilitate mutual learning and capacity building, and to promote
skills development
 Simplifying European legal and regulatory frameworks to
ensure that these include social enterprises on equal terms with
other forms of businesses, notably in the fields of pubic
procurement, state aid measures for social and local services and
capital markets
Increase numbers, scale, scope and impact of social enterprises
by boosting management, public governance and recognition of the social enterprise sector
Increase knowledge, transparency,
recognition and visibility of the SE sector
Improve the effectiveness of public
policies towards the sector
Improve management capabilities &
create market places
Map, portray
& spread
business
models of SE
Collect,
compare &
spread SE
labels & social
impact metrics
Set-up and manage a
web exchange
platform for social
enterprise & social
investors
Support mutual learning
& capacity building for
administrations in
promoting & financing
SE
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Increase numbers, scale, scope (by issue & territory) and impact of social enterprises
by increasing the access to finance
Increase of quantity and
quality of social investment
supply
Establishment and
operations of
intermediaries in the social
impact market
Increase of quantity & quality
of plans for social enterprise
start-up, development &
scaling-up
Assistance for support
infrastructures BDS,
networking etc
Mobilise more private and public investors
in SIFs
Establish/Improve
regulatory framework
for SIFs
operating EU wide
Mobilise Structural
Funds investments
in SIFs
Establish an EU level
instrument that provides
equity and debt
instruments to SIFs and
financial intermediaries
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Support to
social
enterprises
Introduce an
investment priority
„social enterprise“
in the SF
Regulations
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