European Economic and Social Committee

Defining Social Enterprise

EU Context and Sweden
Social Entrepreneurship Forum Riga 2013-11-07

EESC and the EU context for social enterprise

European Economic and Social Committee (EESC)
Treaty based consultative body for EU Institutions Represents organised civil society Key competence in social economy and enterprise

Social Economy Enterprises highlighted by the EU Institutions:

Key element of EU social model More sustainable in crisis exit factor Create social and economic outcomes social cohesion/inclusion, business growth/employment Prioritised in several EU initiatives Social Business Initiative (SBI)

Implementation on-going Strasbourg conference January 2014

EESC and European Commission descriptions

European Commission (SBI 2011)
Primary purpose social impact rather than profits Operate on market producing goods and services in innovative way Use surplus to achieve social goals Managed in accountable, transparent, participatory the social economy, which include many social businesses

EESC (INT/589 2011)

1.
2. 3. 4.

Primary social objective over profit, producing social benefit, general interest or members
Primarily not-for-profit , surpluses principally reinvested and not to private shareholders/owners Variety of legal forms and models, often hybrid, often social economy Economic operators producing goods and services often SGI, social innovation

5.
6.

Independent entities, participation, co-decision, governance and democracy

Often associated to civil society organisations

Swedish context
Strong civil society tradition
200 000+ organisations 85% active

48% volunteer 14h/month

Vibrant and diverse sector but lack of comprehensive statistical reporting

Civil society shaped the welfare model

Social enterprises created to tackle a social issue/need

Campaigning to make it universal Resulted in strong public sector less recognition of civil society enterprise

Recent developments
Rapid privatisation of public service provision current profit debate

Muddled expressions and many new actors:

Sociala fretag WISE prioritised in several programmes Idburet fretagande not-for-profit service providers Samhllsentreprenrer social business lack of clarity for or not-forprofit?

Estimated 50 000 social economy enterprises Recently increased recognition and political will to support growth and development of social economy enterprises/not-for-profit providers

Social enterprise in Sweden some key features

Civil society actors stem from civil society initiatives Economic actors with trading Created to address social need core social purpose Surplus is seen as a positive to ensure sustainability but is re-invested Primarily legal forms of social economy, often hybrid No specific legislative framework exists or needed High level of social innovation, independence, democratic governance Entrepreneurs are often teams not individuals Wide diversity in size, age and approaches

Thank you for your attention

ariane.rodert@socialforum.se

ariane.rodert@famna.org