The social\neconomy is one of the sectors of the national economy that is also important\nfrom the perspective of regional development. The focus on employment of\ndisadvantaged or vulnerable people, together with social integration, makes\nthem important contributors to overall social cohesion and inclusion. In this\nrespect, they are also key actors in promoting the employment of the most\nvulnerable groups in society (in line with the 2030 Sustainable Development\nGoals). <\/p>\n\n\n\n
In 2018, Act No.\n112\/2018 Coll. on Social Economy and Social Enterprises and on Amendments and\nSupplements to Certain Acts was adopted in Slovakia, which, among other things,\nregulates the subjects of the social economy, as well as the provision of\nsupport in the broader area of the social economy. It also regulates\ninstruments to prevent abuse of public support. A clear set of rules and tools\nto support social enterprises helps the emergence and development of social\nenterprises and stimulates social entrepreneurship opportunities.<\/p>\n\n\n\n
Continuously since the\nadoption of the law in question, interest in social entrepreneurship has been\ngrowing, as evidenced by the number of registered social enterprises in\nSlovakia (there are already more than 400 registered entities). Registration\nallows them to enjoy the full benefits of social entrepreneurship while helping\nto achieve financial sustainability. Registration also enables public policy\nmaking with regard to addressability for the design of support instruments. <\/p>\n\n\n\n
For these reasons, the\npresent document gives priority attention to registered social enterprises.\nMost of them are micro-entrepreneurs. Social enterprises are directly involved\nin the production and provision of services. In Slovakia, RSEs are mostly\nrepresented in business services and industry. <\/p>\n\n\n\n
Since the adoption of Act\nNo. 112\/2018 Coll. on Social Economy and Social Enterprises, there have been\nseveral significant changes. These changes concern not only the legislation as\nsuch, but also the development of a supportive environment was recorded, which\nis crucial for the future development of the whole sector. There has also been\na recent dynamic increase in the number of registered social enterprises as\nwell as progress in the social enterprise support ecosystem. Nevertheless,\nthere are still some barriers and needs for social enterprises to operate and\nsustain successfully in the market. <\/p>\n\n\n\n
A positive fact in terms\nof monitoring the state and development of the social economy In terms of the state and\ndevelopment of social entrepreneurship in Slovakia, regional disparities were\nalso reflected in the representation of RSEs in the regions. By type of\nregistered social enterprises, integrative RSEs predominate, which is related\nto the primary perception of the intent of social enterprises. But the current\nlegal regulation of the social economy and social enterprises has much greater\npossibilities and opportunities.<\/p>\n\n\n\n In terms of the stage of\ndevelopment, registered social enterprises are also diverse. According to the\ndata from the Register of Organisations of the Statistical office of the Slovak\nRepublic within the date of establishment of entities (registered), almost 40%\nof them were established before 2018 (i.e. before the existence of the legal\nregulation of the social economy and social enterprises). The expansive growth\nin the number of registered social enterprises occurred as late as in 2020.<\/p>\n\n\n\n The development trend is\nalso influenced by the increased interest of municipalities in social\nentrepreneurship in the last two years. The increased interest in registering\nmunicipal RSEs is partly explained by the evolution of the COVID-19 pandemic\nand several suspended active labour market policy instruments. <\/p>\n\n\n\n Social enterprises, like\nother enterprises, face barriers in different areas, which are reinforced by\nspecific areas in the context of social entrepreneurship. This fact follows\nfrom the nature of the business as well as from the so-called disadvantaged\nposition on the labour market due to reduced productivity (e.g. in the case of\nintegrative social enterprises). <\/p>\n\n\n\n The impact of the\nCOVID-19 pandemic was also reflected in the economic performance of the SME\nsector, including social enterprises. On the other hand, it has brought several\nopportunities for social enterprises, but also challenges for the future. The\ncurrent period in which the transition is taking place to more sustainable\neconomies creates an opportunity for social business models and social\ninnovation. This means that there is room for them to reach their potential and\nthus contribute to the Sustainable Development Goals. <\/p>\n\n\n\n Examples of good\npractice identified in Slovakia and abroad show that entrepreneurship and\ncreating a positive social impact are compatible or inseparably linked. In this\nrespect, they can be inspiring not only for other social enterprises, but also\nfor the creation of further development of a supportive environment.<\/p>\n\n\n\n A number of key factors\nemerged from the analysis that may be decisive for further development.\nRoundtables and interviews with social enterprises and experts in the social\neconomy have also highlighted specific assumptions that should lead to a\nbalance between achieving financial sustainability and positive social impact.\nIn a broader sense, among the most fundamental of these are the internal and\nexternal factors that influence a sustainable social entrepreneurship model.\nThese include: strong motivation of those interested in setting up RSEs as well\nas already registered social enterprises to contribute to solving the problem\nof employment of disadvantaged and vulnerable persons; building mutual trust between\nthe social enterprise and the employee (i.e. disadvantaged or vulnerable\nperson); setting minimum standards in the field of work with disadvantaged and\nvulnerable persons due to the multiple specificities of employment of the\ntarget group; the economic setup of the enterprise; the field of education and\na favourable supportive environment (i.e. the external environment).<\/p>\n\n\n\n An essential part of the\ndevelopment of social entrepreneurship is also the existence of support schemes\nor instruments. In this respect, access to financial and non-financial\ninstruments (favourable external environment) is crucial. Comprehensive legal\nregulation creates preconditions for further development not only in terms of\nestablishing new social economy entities, but also developing already\nestablished social enterprises and the social economy as a whole. In terms of\nthe mapping of changes, it is a positive fact that in application practice,\nbarriers are gradually being removed and opportunities and strengths are being\nstrengthened towards the stabilisation of social enterprises and the\ndevelopment of the social economy as a whole. <\/p>\n\n\n\n The development of social\nentrepreneurship is also positively influenced by the Regional Social Economy\nCentres, the umbrella organisations of the social economy sector, as well as\nthe National Entrepreneurship Centres at the level of individual regions.<\/p>\n\n\n\n From the perspective of\nmapping developments in the field of social entrepreneurship, the ongoing\nnetworking of social economy entities is also favourable, which contributes to\nthe mutual cooperation of the associated entities with the same objective (i.e. achieving a\nmeasurable positive social impact).<\/p>\n\n\n\n There is potential for\nsocial enterprise development in the agricultural sector (including social farms).\nOn the one hand, social entrepreneurship promotes local resources, but it also\nbrings job opportunities and opens up employment opportunities for\ndisadvantaged and vulnerable people. Such an approach has other benefits\nbesides employing disadvantaged and vulnerable people. It allows for the\nprovision (and expansion) of social services in a specific area (e.g.\nvocational rehabilitation, activation services, etc.). In addition, it also\noffers training opportunities (e.g. provision of specialist social care, social\nservices and preparation for employment). This model can also have a positive\nimpact on the environment itself, which is another dimension of social\nentrepreneurship. It can also be beneficial in terms of creating links between\nmultiple actors at local and regional level. <\/p>\n\n\n\n Education and\nentrepreneurial skills also play an important role in the successful\ndevelopment of social entrepreneurship. There remains a need for more dynamic\nsupport in the field of education. Entrepreneurial and management skills are\nequally important in the pursuit of sustainability between financial stability\nand achieving a positive social impact. Otherwise, the lack of entrepreneurial\nskills when entering social entrepreneurship poses a certain risk. Particularly\nin terms of business plan development and management. It is also proving to be\na risky area of marketing. For this reason, access to the so-called soft\nsupport in the form of advice, business skills support and mentoring is\nparticularly important for sustainability and further development. <\/p>\n\n\n\n In the short\nterm, the biggest challenge for the representatives of RSEs that participated\nin the OS is to stabilise in an environment of a persistent pandemic and the\nresulting degree of uncertainty.<\/p>\n\n\n\n A particularly problematic\narea that many registered social enterprises see is the conflation of the\ncurrent concept of social entrepreneurship with the negative experience of the\npast. There are also negative connotations associated with the term social\nenterprise. As it emerged from the OS, some RSEs also encounter biases in\napplication practice in terms of product\/service quality. <\/p>\n\n\n\n The analysis also\nhighlighted the need for inter-ministerial and inter-sectoral partnerships.\nOther challenges identified include: greater use of service vouchers; the need\nfor more dynamic support to social enterprises through investment aid and a\nreduction in the administrative burden associated with it; increased awareness\nof the current concept of social entrepreneurship, including in society as a\nwhole. <\/p>\n\n\n\n Other proposals\nalso emerged from the analysis. In the context of skills upgrading, the\nproposal is to model the Czech Republic (but also other countries) to create\nspace and enable the implementation of internships in social enterprises. And\nin this way strengthen the competences needed to set up or manage social\nenterprises.<\/p>\n\n\n\n In the short\nterm, RSE representatives consider the biggest challenge to be stabilisation in\nan environment of a persistent pandemic and the resulting degree of\nuncertainty. However, a\nconsensus emerged from the interviews that they are determined to continue\ntheir work despite the increased level of uncertainty. <\/p>\n","protected":false},"excerpt":{"rendered":" The social economy is one of the sectors of the national economy that is also important from the perspective of regional development. The focus on employment of disadvantaged or vulnerable people, together with social integration, makes them important contributors to overall social cohesion and inclusion. In this respect, they are also key actors in promoting […]<\/p>\n","protected":false},"author":2,"featured_media":5411,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[39],"tags":[],"class_list":{"0":"post-5872","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news"},"yoast_head":"\n
\nin Slovakia is that\npublic interest in social entrepreneurship is strengthening and gradually\ntransforming into\nstrategic documents, including the Vision and Strategy for the Development of\nSlovakia until 2030. <\/em><\/p>\n\n\n\n