VSD F2F-Pristina Social entrepreneurship in the Western Balkans – what opportunities? 20.09.2016
Agenda Social entrepreneurship: what, why and how 11.00-12:00 Lunch Sharing thoughts and experiences from the region 13.30-15.00 Break Working groups – opportunities for Western Balkans 15.30-16.45 Key take-aways and possible way forward 16.45-17.15 2
Agenda Social entrepreneurship: what, why and how • What did I hear from you? • A definition to work with Sharing thoughts and experiences from the region Working groups – opportunities for Western Balkans Key take-aways and possible way forward 3
Why is this important and relevant? Some quotes from around the room… Mixing Social & economical, building bridges • The mix between the economic and social sphere. One cannot just put everything into the economic aspects. One should also put the social aspects. It cannot be separate for youth, minorities.. This approach could bring new approaches and new perspectives to what we do (e.g. mixing the elderly experience with youth enthusiasm; women have a lot of potential but bigger hurdles in terms of personal circumstances) • NGOs complain that government doesn’t listen to them, that it is not interested in solving social issues. Perhaps social businesses could help build bridges? Shifting mindsets, expanding view of possibilities • Changing people’s mindset about what is possible, what these people can do, is also very important and powerful • It is about ideas and possibilities Ecosystem and system change All this needs be linked with changes in regulation and education • I don’t care what they are named or do, if they don’t change the • system, it is useless Sustainability • Supporting interventions that can survive and thrive over time 4
But then, lots of questions…and lots of caveats What is this about? …it’s a company that redistributes its profits for social projects? …it’s a company that hires Romas? …we cannot have any, the legal status does not exist here… …is it a form cooperative? We have a lot of those around here… It is complicated, especially in our context… ! no entrepreneurial mindset (this is no career…), but mostly NGOs competing for grants ! lack of creativity, no inspiration, littles ideas to start with ! poor ecosystem (regulatory, tax, corruption) make it even more difficult than for small businesses ! little support for scale and replication ! no SDC program modality and difficulty to balance social and businesses objectives ! There is increasing awareness and buzz (among youth notably), and some draft laws being put together, but it is still very early stage 5
Agenda Social entrepreneurship: what, why and how • What did I hear from you? • A definition to work with Sharing thoughts and experiences from the region Working groups – opportunities for Western Balkans Key take-aways and possible way forward 6
What is a Social Entrepreneur? • An Individual with an innovative solution and a vision for solving society ’ s most pressing social problems. • Rather than leaving societal needs to the government or business sectors, they find what is not working and solve the problem by finding an alternative approach, spreading the solution, and persuading others to take new leaps. DISRUPTIVE SOCIAL ENTREPRENEURIAL ECONOMIC INNOVATION QUALITIES SUSTAINABILITY TO ANSWER A MAJOR SOCIAL OR ENVIRONMENTAL CHALLENGE COLLABORATIVELY
How is it different from the rest? 8
It is not about a legal form, but the existence of an adapted legislation will help Countries without Countries with appropriate legal framework appropriate legal framework Benefit Corporation/ Flexible Purpose Corporation – USA NGO/Foundation status: - Cannot reinvest profits (partly), Italy and Australia (in progress) → limits growth - includes positive impact on society, workers, the community → only grant funding and the environment in addition to profit as its legally → no stock options defined goals (goal, accountability, transparency) - Always legitimizing themselves - no tax advantage Low-profit ltd liability company (L3C) – USA (partly) For-profit status: - Stated goal of performing a socially beneficial purpose, not - No tax exemption (also for maximizing income donations) - Control by shareholders not - Hybrid structure that combines the legal and tax flexibility of necessarily aligned a traditional LLC, the social benefits of a nonprofit - Always legitimizing themselves organization, and the branding and market positioning advantages of a social enterprise + it can get tax-deductible Hybrid status (combining non-profit and funds (not only grants) for-profit arms under a same roof) Charitable incorporated organization – UK/ ESS - France - Complex to set-up and explain - Facilitated LLC form for charitable organizations and social ‘Schyzophrenic’ organization - enterprises, against ‘asset lock’ and limited dividends. Same fiscal rules as corporations. Facilitated investments Community contribution company – Canada (partly) - Hybrid structure that allows to build up and reinvest profits 9
What does it take to work with Social Entreprises? 1. AVENTURES MINDSET 10
What does it take to work with Social Entreprises? 2. A BIGGER POOL TOWORKWITH But 12 medals for the whole Western Balkans region! 11
What does it take to work with Social Entreprises? 3. PATIENCE 12
What does it take to work with Social Entreprises? 4. A JOURNEY COMMITMENT Identity Know-how & Network Effect Visibility Pro-bono support Expanded Peer-to-Peer Ecosystem Change Collaborative Stipend Community Vision Entrepreneurship 13
Examples of social entrepreneurs active in VSD and job creation Social enterprises that facilitate access to jobs • • • It can also scale and replicate quickly Client-centric (where, when, as, Works on the DNA of the and easily how much they can) enterprises > mindset shift • Works on hard and soft skills • Everyone can be an entrepreneur CoderDojo Campoalto Incluyeme --- https://www.youtube.com/watch?v=QReTd86Hg-Q https://www.youtube.com/watch?v=k5ciSFjEN1c http://www.rte.ie/news/player/2016/0618/21006826-over-700- tech-innovations-shown-at-the-coderdojo-coolest-project-awards/ Job Creation Job Placement Skills Development (Labour Market) (Demand) (Supply) Specialterne Hiring inclusively not a trade-off or an add-on Social enterprises https://www.youtube.com/watch?v=k4aZpcsJPq8 that provide RegionalWert When MSD has its limits... inclusive jobs https://www.youtube.com/watch?v=wzoIIq8w6Is • It can be anyone, as long as s/he is shameless, obsessed(?), The napkin revolution and visionary – often a personal problem https://www.ted.com/talks/arunachalam_murug • Putting business models ‘up -side- down’ for new opportunities anantham_how_i_started_a_sanitary_napkin_r • End success will depend on venture and entrepeneur’s potential evolution?language=en …or help incubate • Works on spirit and energy, as much as on skills Balloon • Looks for entrepreneurs where there are self-entrepreneurs https://www.youtube.com/watch?v=hgKb1R9p zqQ&feature=youtu.be • Scale and replication since the start • From ‘insertion projects’ in whatever, to a corporation with 15 Groupe VitamineT Inclusive enterprises companies, with 2/3 youth in insertion + personal accompaniment. Successes and failures • 50m revenues, 1k employees, bought back failed enterprises 14
And now… lunch! 15
Agenda Social entrepreneurship: what and how Sharing thoughts and experiences from the region • Presentations from current and past experiences • Possibilities for the region Working groups – opportunities for Western Balkans Key take-aways and possible way forward 16
A realization: You have been speaking ‘prose’ all this time (perhaps) without knowing it « Par ma foi ! il y a plus de quarante ans que je dis de la prose sans que j'en susse rien, et je vous suis le plus obligé du monde de m'avoir appris cela. ». Act II, scene IV, Le Bourgeois Gentilhomme during an exchange with his teacher in Philosophy 17
Sharing thoughts and experiences from the region Serbia (Jovana) • Bagel shops hiring victims of trafficking Albania (Silvana and Philipp): • Bagel shops hiring victims of trafficking 7’ short description & • Roma social inclusion project lessons learned BiH (Mersiha) 7’ Q&A • Funky Gorilla Macedonia (Aneta and Biljana) • CSO working drug addicts in agriculture • Cooperative and market employability 18
What could you do? What could you do with existing resources and process? What would you like to try longer-term? A question, if any? 19
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