Social Economy in General and in Latvia_1

Social Economy in EU The social economy in the Europe 20 2020 20 Strategy Strategy T.Korsaka, Latvia

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Social Economy What they are 

What they are - there are 2 million social economy enterprises in Europe, representing 10% of all businesses in the EU. More than 11 million people – about 6% of the EU’s employees – work for social economy enterprises. They have different legal forms and various objectives ranging from agriculture and banking to provision of employment and sheltered workshops. Source: https://ec.europa.eu/growth/sectors/social-economy_lv

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Main objectives 

Main objectives - the primary objective of the traditional social economy enterprises is to serve the members and not to obtain a return on investment as the traditional mainstream capital companies do. The members act in accordance with the principle of solidarity and mutuality, and manage their enterprise on the basis of 'one man one vote' principle. Source: https://ec.europa.eu/growth/sectors/social-economy_lv

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Social enterprises

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Social enterprises - an important and growing group of social economy enterprises are the social enterprises. Their main objective is to have a social, societal or environmental impact for the general interest. Source: https://ec.europa.eu/growth/sectors/social-economy_lv

Social Economy in Latvia

Legal recognition of certain forms of social economy organisation

Specific tax treatment for social economy organisations in the EU

Impact of European Policies

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The social economy in the Europe 2020 Strategy

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European Commission at 2010 launched the Europe 2020 Strategy to achieve sustainable recovery by energetically and resolutely tapping all of society's strength and potential. Europe 2020 sets out three core priorities: 

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smart growth (developing an economy based on knowledge and innovation); sustainable growth (promoting a more resource efficient, greener and more competitive economy); and inclusive growth (fostering a high-employment economy delivering economic, social and territorial cohesion).

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Five specific targets were set as indicators of these priorities: 

Five specific targets

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increasing the employment rate from 69% to 75%; investing 3% of GDP in R&D; reducing the greenhouse effect, developing renewable energies and increasing energy efficiency;

reducing the school drop-out rate; and reducing the number of people living in poverty by 25%.

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Smart growth: knowledge and innovation

In terms of smart growth, it has been shown that the social economy contributes to the development of an economy based on knowledge and innovation. The potential of the social economy is evident in all its organisational forms and economic activities. There are many examples of organisational or social innovation by cooperatives and other similar enterprises in industry, agriculture, services and the financial sector. In the latter, ethical banking and microcredit have proliferated and have had an extraordinarily positive social impact.

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As a result

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As a result, on 25 October 2011 the Commission issued a new Communication to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions: the "Social Business Initiative. Creating a favourable climate for social enterprises, key stakeholders in the social economy and innovation" (COM(2011) 682 final). At the same time, on 26 October, the European Economic and Social Committee issued an Opinion on "Social entrepreneurship and social enterprise». Source: http://www.eesc.europa.eu/resources/docs/qe-30-12-790-enc.pdf 

The Social Business Initiative listed 11 key actions

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The Social Business Initiative listed 11 key actions:

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1: Proposal for a regulation on European social investment funds (7.12.2011).

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2: Microfinance.

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3: A European financial instrument (6.10.2011).

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4: Investment priority for social enterprises in the structural funds (6.10.2011); Common Strategic Framework (14.03.2012). 5: Mapping of social enterprises; business models, economic weight, tax regimes, identification of best practices; (action 9:) study on the situation of mutual societies. 6: Data base of labels and certifications. 7: National and Regional Administrations: promotion of mutual learning and capacity building. 8: Electronic data exchange platform for social investors and entrepreneurs; access to EU education and training programs. 9: Simplification of the Statute for a European Cooperative Society regulation, and a regulation for a European Foundation statute (8.02.2012) 10: Greater priority given to considerations of quality in awarding contracts in the context of public procurement reform. 11: Simplification of the implementation of rules concerning state aid to social and local services.

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Other actions mentioned in the SBI

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Other actions mentioned in the SBI

• Proposal for a Regulation on European Venture Capital Funds • Reliable statistics on social enterprises • Communication on EU State Aid Modernisation • Public Consultation on the General Block Exemption Regulation

• SMEs: Consultation on the "Europe 2020" action plan

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The social economy: an emerging sector in a plural society

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The necessary conceptual identification of the social economy

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CHALLENGES AND CONCLUSIONS

Legal identification of the social economy and recognition in national accounts

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Coordination between social economy federations

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The social economy and social dialogue

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The social economy and public policies

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The social economy amid an economic and welfare state crisis

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The social economy, the new enlarged European Union and the development of an integrated Euro-Mediterranean space The educational system, research and networks, universities and the social economy

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Social economy identity and values

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Source: http://www.eesc.europa.eu/resources/docs/qe-30-12-790-en-c.pdf