Summary document on the 1st Regional Consultation in Trieste (IT)
27-28 March 2014
Roundtable 3 – WELFARE
Social Economy and enterprises
The current demographic evolutions are changing the population’s age distribution, families
structures, and the composition of society in terms of cultures and codes of conduct, requiring
updates in the interpretation of actual and perspective needs in terms of social policies and
services. As a matter of fact, such update concerns a discussion on the perspective and
sustainability of welfare systems within individual countries or regions.
Concerning the evolution of welfare systems, according to the literature ( Pestoff, 2005), two
main scenarios are possible in the near future:
1) The strengthening of a market-led private sector generating a 2-speed welfare system with
a high percentage of the population excluded, a reduced social cohesion, and an increasing
mistrust both in the third sector and in the institutions (at local, national and European level);
2) The growth of a welfare-mix system, where the public sector regulates the organisation of
services. In such scenario the social economy can have a crucial role.
Starting from the MMWD analysis of demographic change, the Roundtable on Welfare in
Trieste has begun a process dialogue between the partners and their external experts in this
matters, trying to understand the role of civil societies (therefore of social economy
organizations) in concerned countries, in the welfare systems and it perspectives.
During the first meeting, the roundtable has analysed the relationship of private and public
actors in the different partner territories in addressing the actual needs of local communities,
and the experiences of territorial development models connected to social economy.
The Roundtable is coordinated by the Emilia-Romagna Region (IT) and its expert on this
matters, AICCON, an Italian association operating in the research area dealing with the
themes of Social Economy, Social Entrepreneurship, Co-operative enterprises and Non-profit
organizations.
Working methodology and contents
Firstly the coordinator of the table, Gianfranco Marzocchi (AICCON), introduced the session
with an overview of the concepts of Social Economy and Social Enterprise at European level,
presenting the main definitions, policies and data. This was necessary to give to the
participants a common basis on the themes. In fact, the concepts are very different from one
country to another and the European perspective is essential for the discussion in a
comparative way.
After the introduction, each partner presented a short power point showing their organizations
and territories and the current situation of Social Economy in their countries (legal framework
– if exists-, data on Social Economy and Civil Society organizations, main actors, relationship
with public entities, etc.). In this way we are now able to understand the plurality of models
and standards in the partner countries and to map the different forms of social enterprises in
the South East Europe Region.
During the second work group the coordinator asked to the participants to identify some
specific objectives on Social Economy and enterprises, starting from the main lack and
evidences pointed out the day before.
Main results of the two-days roundtable
We divided the main results of the Roundtable in two aspects: the evidences and lacks on
Social Economy emerged from the different territories and the specific objectives addressing
the Social Economy and its role in the evolution of the welfare system.
Evidences and lacks on Social Economy from the different territories:
 There is not comparable data on Social Economy and Social Entrepreneurship mainly
due to the multiple definition of Social Economy across the countries;
 Legal framework: often the legal framework for social economy has a very restrictive
orientation, few and inefficient incentives;
 There is not a systematic approach between State, private entities, civil society
organizations and universities (academia) on Social Economy and Social
Entrepreneurship;
 Lack of awareness of the decision makers on these themes;
 There is an inefficient communication between national and local level: the national
policies are not adequate to the local needs;
 The soft infrastructures are under-developed to properly develop the social
entrepreneurship;
 Financial restraints;
 Lack of education on social economy fields: citizens and policy makers are wary on
social economy because they don’t know it and in some cases they consider the social
economy organizations as a “Trojan horse” of the private sector to deliver on charge
the social care services;
 In general the social economy sector in the SEE Region is under-developed.
Objectives on social economy to build up an action plan aimed at addressing the main
challenges entailed by the demographic change through the promotion of Social
Economy:
 Promotion of social enterprises in emerging fields reflecting new societal demand
consequent to demographic change;
 To address the increasing needs of elderly people (heath, economic, social problems)
though the involvement of State, society and local communities;
 To promote and ensuring a preventive programme on health care taking into
consideration the demographic projections to 2020 emerged from MMWD analysis;
 To deal with the lack of access to health and welfare benefits for unemployed people;
 To build up and supporting the environment/ecosystem for the development of social
economy/social entrepreneurship;
 Increase the investment on training and education on Social Economy and Social
Entrepreneurship at different level (both for students and managers of social economy
organizations);
 Recognize the opportunities for employment in the social economy sector and the
important role that the social enterprises can play in employ disadvantages;
 More active citizenship at local/National levels;
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To create a legal and administrative framework for social economy at European level:
foster the improvement of legal framework and the introduction of incentives for
social economy organizations (for examples better access to public procurement);
Creation of public-private partnerships and governance models to strengthen the role
of civil society in designing and delivering social services;
Improve the financial sustainability of social and care services through incentives (for
example access to credits, tax benefit for donors);
To submit a project to foster the cooperation between social enterprises with the aim
to build up, starting from experiences, a fiscal framework at European level, a better
use of financial resources, a community of social enterprises at European level.
To Belgrade, 12-13 June 2014: objectives and methodology
During the Belgrade meeting will be shown 3 national cases from 3 different countries (Italy,
UK, France) who will present their national legal framework of Social Economy, the models
of governance of their organizations (in terms of activities, management and financial
sustainability) and their relationship with public entities. The 3 countries selected have a wellestablished experience on Social Economy and peculiar characteristics. In this way the
Roundtable will share and debate on the different models to better identify the lacks and the
objectives on Social Economy in a transnational perspective. Furthermore, the second
meeting will specifically analyze the main challenges that will emerge due to the demographic
change in the SEE Region and how the Social Economy can contribute to meet them.
Annex 1
Current situation of Social Economy in each partner regions
Emilia Romagna Region (Italy)
With over 4 million inhabitants Emilia Romagna is one of the biggest region of northern Italy.
As all over Europe, Emilia Romagna Region is updating its welfare system to better meet the
emerging needs coming from ageing, new poverties, the economic crises and the reduction of
resources, and an immigration emergency.
In this scenario Emilia Romagna is trying to innovate its welfare system focusing on the
collaboration and the recognition of the important role of social economy organizations in
dealing health and care services.
The Region call this approach “societal pluralism”: a network of 940 co-operatives, 3440
associations for social promotion and 3068 voluntary organizations, more than 516000 people
involved in the Third sector of who 428000 voluntary workers.
Bringing together economy, society, services is the key to innovate the welfare system: a coproduction approach where also for profit enterprises can contribute, and actually contribute,
to the welfare system, generating value for the society.
Social Economy in Emilia Romagna aims to help those who are more vulnerable, it is a factor
for development and social cohesion, and it also creates opportunities for work. All of this
facilitates the active citizenship and greater the participation through inclusion projects
creating the social capital of the Region.
Abruzzo Region (Italy)
The region Abruzzo is an Italian local authority at regional level that has the task of
programming on various issues. In particular, it processes long-term projects on immigration.
In Italy there is not yet an official definition for “Social Economy”. According to the
description by ISFOL “social economy” is the term used to indicate the integration between
the economic performance of a company/organization with socially relevant goals.
In the last few decades this sector (also called “Third sector”) has seen a significant growth,
both in terms of resources used and production made.
At national level Istat (National Statistics Institute) started in 2011 the second Census of nonprofit sector: in Italy there are 301,191 non-profit organizations, that becomes 347,602 if we
consider the local units. This non-profit Census evaluates the organizational structures, the
networks of relationships established, the human resources employed, the offered services, the
forms of communication that the institutions adopt .
The pre-census lists have already provided some interesting information about the way the
universe of non-profit organizations is structured in Italy. For example, the majority of the
institutions is represented by the associations (79%), followed by long-distance social
cooperatives (4%), voluntary organizations (3.1%), institutions of representation (3% ).
At regional level there are 8156 non-profit organizations (the 2% of Italy) employing 9395
people, 4429 outworkers and 91904 voluntary workers. The majority of these organizations
operate in the cultural, sport and recreation sector (5339 organizations) and only 149 operate
in the field of social services.
The most important Italian associations, as Caritas or Unicef, have a consolidated partnership
with public institutions; but very often the social associations enter into agreements with
public bodies just for the realization of particular projects, such as the implementation of the
so called regional “Area Plans”, required by Law n. 328/2000. In general there is not a
systematic approach.
Considering the services that could be must used by immigrants in the Region we can identify
1685 organizations in different sectors: education, health, social services, development and
housing, law, advocacy and politics, international cooperation.
Friuli Venezia Giulia Region (Italy)
The organization of social system in Friuli Venezia Giulia Region is ruled by the regional law
6/2006 “Integrated system for promotion and protection of the rights of social citizenship”.
The directions of social policies are given by the Region through social planning acts which
are integrated with other regional policies: health, education, work, culture, housing,
transports and other issues connected to welfare. The integrated social system at local level is
planned and managed by the Municipalities (Servizio sociale dei Comuni - Municipalities
social service).
The growth of a welfare-mix system with a strategic role of institutional governance is
considered very important to the development of innovative social services. In this scenario
social economy has certainly a crucial role.
The relationships between public institutions and private/third sector organizations, in order to
support and foster their activities and promote their coordination, are ruled by two regional
laws: Regional law n. 20/2006, relative to social cooperation and Regional law n. 23/2012,
regarding associations and volunteers.
Municipality of Vratsa (Bulgaria)
The district of Vratsa is situated in the North-Western planning region in Bulgaria.
A National Concept for Social Economy was elaborated on 2011. The Directorate "Living
Standards, Demographic Development, Policies and Strategies" under the Ministry of Labor
and Social Policy is responsible for the implementation of the Concept on the basis of annual
action-plans designed by a National Consultative Social Economy Council. National Concept
of Social Economy is an expression of social commitment to the creation and strengthening of
an enabling environment for the implementation and development of models and practices in
the field of social economy in Bulgaria. It is an expression of intention and determination to
promote awareness, culture and values related to companies and organizations in the social
economy.
In Bulgaria there are 46 social enterprises, among which 2 in the territory of Vratsa district.
There are established successful models of social partnership between organizations of
disabled people, local authorities, business and the media.
Heraklion Development Agency (Greece)
Social Economy is a different type of business pursuing values of solidarity, social cohesion,
individual superiority against capital, social responsibility, democratic decision-making not
for profit and reinvestment.
In Greece there is a strong regulatory framework of 4 law on social economy, social
entrepreneurship and co-operatives enterprises. The Social Cooperative Enterprise
(Koin.S.Ep.) is urban cooperative social purpose with limited liability of its members and has
a statutory commercial property. The Koin.S.Ep. enterprise which is managed equally by its
members and its operation is based on the pursuit of collective welfare and the profit resulting
from actions only serve the public interest.
In the Country there are 415 KoinSeP (Social Cooperatives Enterprises), among which 20 in
the Region of Crete, 8 Social Cooperative Enterprises of Integration, 65 Social Cooperative
Enterprises of Care and 322 Social Cooperative Enterprises of Collective and Productive
Purpose.
Bistrita City Hall (Romania)
Social economy is “the type of economy that combines effectively individual responsibility to
the collective one to produce goods and/or provide services, seeking social and economic
development of a community and having as main purpose a social benefit.” Whereas, social
enterprise, created by a group of people, represents an organization having as main purpose
ensuring/providing community welfare and it is the place where material interests of those
who have invested capital are limited. It is an independent organization taking economic risks
deriving from the carried out economic activity and involving in the management various
stakeholders of the community.
There are different types of social enterprises in Romania:
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NGOs that have the possibility of exemption from the payment of income tax deriving
from economic activities performed up to € 15,000 in a fiscal year, but not more than
10% of the total income tax payment;
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Mutual organizations (the second largest trader of social economy in the Country)
which are divided into two categories: service providers - mutual organizations
focusing on social and health risk coverage of individuals- and mutual insurance
companies - usually focused on providing goods (vehicles, etc.), but they may also
cover life insurance to certain areas;
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Co-operatives (the major trader of social economy in Romania) defined as: an
autonomous association of people, voluntarily united to solve the social, economic and
cultural needs of people, as well as their common aspirations through a jointly owned
and democratically controlled enterprise;
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Protected units: entities governed by NGOs or commercial companies and benefit
from Romanian specific legislation (Law 448/2006 republished with the necessary
amendments and additions). Protected units are defined as public or private trader,
with its own management, within which at least 30% of the total number of employees
with individual employment contract are disabled people.
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Other legal entities. The category of social enterprises may also include other
legal entities belonging to the small and medium enterprises category complying with
the principles of social economy: individual and social objective priority to increasing
profits, voluntary association, equal voting members, autonomy of decision, profit
limited distribution, independence of public field.
Regional Economic Development Agency fo Sumadija and Pomoravlje –
RADASP (Serbia)
The Regional Economic Development Agency for Šumadija and Pomoravlje Ltd (REDASP),
was founded in 2005 through the transformation process of the Regional Agency for small
and medium enterprises ‘Šumadija’ which was established in 2002 within the project "The
Non-financial support to the SME sector in Serbia", financed by the European Union and the
European Agency for Reconstruction. The primary objective of the Regional Agency is to
create conditions and stimulate economic and social development of the Šumadija and
Pomoravlje region.
Social economy in Serbia is implemented by formal and informal actors. The main formal
actor is The Ministry of Labour, Employment and Social Policy of the Republic of Serbia,
which implements all government initiatives in this area. The main implementing bodies are
National Employment Services (network of over 120 offices) and Local Municipalities with
their local departments and programs for providing different types of social services. Whereas
there are numerous organizations, associations, NGOs which are implementing many
initiatives in this area.
The ministry deals with all the topics and problems which are met in the sphere of
employment, but focuses:
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On the improvement of the conditions on the labour market and the improvement of
the institutions of the labour market;
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On the promotion of the social inclusion and equal opportunities on the labour market
through the employment encouragement and the social inclusion of people who have
difficulties to find work;
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On the development of social entrepreneurship and the local employment policy;
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On the work force quality improvement by investing in the human capital.