1. 1 Social Enterprises in Western Europe: Some Insights from the EMES Experience UNDP – EMES Regional Workshop on Social Enterprises in CEE and the CIS (December 11-12, 2006 – Brussels) Prof. Jacques DEFOURNY University of Liège (Belgium) and EMES European Research Network

2. 2 Overview 1.Some conceptual backgrounds 2.The EMES research on "Work Integration Social Enterprises" 3.Policies supporting the development of social enterprises 4.Some prospective remarks

3. 3 Appearance of these notions around 1990 (US and Western Europe) Development of a whole literature since the mid-90's –United States: around business schools and pro-active foundations' strategies to support social change –Western Europe: in relation to new developments within the "third sector" or the "social economy" (voluntary organizations, cooperatives,…) 1. Some conceptual backgrounds A.SOCIAL ENTREPRENEUR, SOCIAL ENTREPRENEURSHIP, SOCIAL ENTERPRISE

4. 4 "Vocational" conceptions stressing the profile of individual entrepreneurs with a social mission (e.g. Ashoka) "Funding-oriented" conceptions focusing on NPO's business strategy or activities to generate market income (in addition to or instead of grants and donations) "Social value-oriented" conceptions underlining the social dimension or the social aim of activities carried out by any form of enterprise  may be close to CSR "Co-operative" conceptions stressing the participatory dynamics and the "public benefit" orientation of new forms of cooperative enterprises B. A WIDE DIVERSITY OF CONCEPTIONS OF SE

5. 5 C. THE EMES APPROACH OF SOCIAL ENTERPRISE Starting point: in most countries, emergence of new types of enterprises within the third sector, mainly in three fields: work integration of unemployed or marginalized persons, personal services (e.g. childcare, health related services,…) local development (community businesses, agro-tourist cooperatives,…). 1996-2000: construction of a (Western) European approach of SE based on: a "working definition" of SE made of 4 economic and 5 social criteria (methodological tool, not normative criteria) country studies for all 15 EU member states, building blocks for a theory of SE.

6. 6 Redistribution State (public agencies) Not-for profit For-profit Market Private companies Reciprocity Community (households, families) Public Private InformalFormal D. LOCATING SE IN THE WHOLE ECONOMY Third sector

7. 7 2. 2001-2005: EMES RESEARCH PROJECT ON "WORK INTEGRATION SOCIAL ENTERPRISES" Means : productive activity with guidance or training, with the view of achieving a lasting integration, be it within the social enterprise or within a traditional enterprise Goal : occupational and social integration of handicapped or marginalised people Besides the main criteria of the « working definition », a WISE is characterised by two major elements: A. THE FIELD UNDER STUDY

8. 8 B. MODELS OF WISEs IN THE EU Germany SBG a = Soziale Betriebe und Genossenschaften = social firms and co-operatives KB a = Kommunale Beschäftigungsgesellschaften = municipality-owned social enterprises BW a = Beschäftigungsgesellschaften von Wohlfahrtsverbänden = social enterprises organised by welfare organizations BLUI a = Beschäftigungsgesellschaften von Lokalen, Unabhängigen Initiativen = social enterprises organised by local initiatives

9. 9 Belgium EI b = entreprises d’insertion = work integration enterprises ETA b = entreprises de travail adapté = sheltered work enterprises EFT b = entreprises de formation par le travail = enterprises for training through work SOLIDR b = entreprises sociales d’insertion SOLID’R = SOLID’R work integration social enterprises ESR b = entreprises sociales d’insertion actives dans la récupération et le recyclage = work integration social enterprises with recycling activities SW b = sociale werkplaatsen = social workshops IB b = invoegbedrijven = work integration enterprises BW b = beschutte werkplaatsen = sheltered workshops AZC b = arbeidszorgcentra = work health centers

10. 10 Spain CEE e = centros especiales de empleo = special employment centres CO e = centros ocupationales = occupational centres ONCE e = empresas de la Organización Nacional de Ciegos de España = enterprises of the Spanish National Organisation for the Blind EI e = empresas de inserción = social integration enterprises (for people at risk of social exclusion) Finland LCO fin = labour co-operatives CSF fin = co-operatives and social firms for disabled people

11. 11 France CAVA f = centres d’adaptation à la vie active = centres for adaptation to working life EI f = entreprises d’insertion = work integration enterprises AI f = associations intermédiaires = intermediate voluntary organisations RQ f = régies de quartier = neighbourhood enterprises ETTI f = entreprises de travail temporaire d’insertion = temporary work integration enterprises GEIQ f = groupements d’employeurs pour l’insertion et la qualification = employers organisations for work integration and training EIN f = entreprises insérantes = long-term work integration enterprises

12. 12 Italy COSO i = cooperative sociali di tipo b) = B-type social co-operatives Ireland SE Irl = sheltered employment LD Irl = local development work integration social enterprises SEW Irl = Social Economy (National Programme) work integration social enterprises Portugal EI p = empresas de inserção = integration companies EP p = emprego protegido = sheltered workshops

13. 13 United Kingdom WCO uk = worker co-ops CB uk = community businesses SF uk = social firms ILMO uk = intermediate labour market organisations R uk = Remploy (large quasi-state enterprise) Sweden SOCO sw = social co-operatives SH sw = Samhall (network of sheltered workshops)

14. 14 Identification sheet for each category of WISE C. TYPOLOGIES OF WISEs For each of these categories of WISE, spotting of the main characteristics: legal form, goals, types of jobs, importance of training, target group, resources…

15. 15 Main characteristic of target groups Persons with mental or physical disabilities « Abled » unemployed workers WCO uk ETA b Women at risk Minorities Low- qualified young people «Social handicap» (alcohol, drug) «Hard-to- place» (long-term) BW b COSO i EP p CEE e ONCE e CO e SBG a BW a Ai f RQ f CB uk KB a SEW irl LD irl CB uk LD irl CSF fin RQ f EFT b EI e RQ f ETTI f GEIQ f CB uk ILMO uk CSF fin SBG a BW a Ei p Ei e CAVA f RQ f SEW irl CSF fin R uk PDLD uk CSFDP fin SOCO sw SH sw EI b SOLIDR b IB b AI f ETTI f EIN f KB a BW a LD irl EI p SBG a UCS irl LCO fin CSF fin RQ f GEIQ f BLUI a SOLIDR b ESR b SW b AZC b COSO i SEW irl

16. 16 Integration goals Socialisation through productive activity Transitional employment supported by short-term subsidies Permanent self-financed jobs CAVA f KB a RQ f COSO i SW b ESR b SOCO sw AZC b ETA b BW b SH sw EP p CEE e CO e R uk CSF fin ONCE e EI b IB b EIN f SOLIDR b WCO uk ILMO uk LCO fin LD irl SBG a BLUI a EFT b EI f AI f EI p EI e ETTI f GEIQ f EI e R uk SF uk SE irl CB uk Jobs supported by long-term subsidies

17. 17 Resources used Non-market resources Market resources Donations/Volunteering ONCE e KB a LCO fin LD irl CB uk BLUI a BW a EI b IB b EI e SOCO sw EFT b ILMO uk SF uk AZC b EI p CO e CEE e SOLIDR b ESR b SF uk SH sw SW b R uk COSO i BW b ETA b CSF fin EP p SEW irl SE irl RQ f EIN f ETTI f GEIQ f WCO uk A more elaborated typology is used in the book

18. 18 D. TOWARDS A THEORY OF SOCIAL ENTERPRISE The social enterprise as a multiple-goal and multi- stakeholder organisation  first attempts of empirical testing with WISEs The social enterprise as a specific system of « contracts » and « incentives » (new institutional economics) The social enterprise as a structure which mobilises and reproduces « social capital » in specific forms

19. 19 3.POLICIES SUPPORTING THE DEVELOPMENT OF SE Public policies focusing explicitly on the promotion of SE (UK since 2002, EQUAL programme,…) Creation of federative bodies providing various types of technical support (for instance, the Italian Consorzi) Setting up of public or public-private funds providing seed capital, loans and other financial supports (France, Belgium,…) Promoting access of SE to public procurement (e.g. local public goods) New legal frameworks designed for SE (see comparative analysis published by CECOP, 2006).

20. 20 New legal frameworks related to the "cooperative model": Italy (1991): "social cooperative" Portugal (1998): "social solidarity cooperative" Spain (1999): "social initiative cooperative" France (2001): "cooperative society of collective interest" Poland (2001): "social cooperative" New legal frameworks based on a more "open model": Belgium (1995): "social purpose company " United Kingdom (2004): "community interest company " Finland (2004): "social enterprise " Italy (2006): "social enterprise"

21. 21 4. PROSPECTIVE REMARKS A. ACHIEVEMENTS Light shed on the potential of "civic" entrepreneurial initiatives for the public good Microeconomic approach going beyond the specific forms of organisations and able to encompass many of them (NPOs, co-operatives, companies with social purpose,…) Social enterprise : a concept which is probably easier to apprehend (and/or more relevant in non Western-style economies) than the broader concepts of « social economy » or « third sector », although it does not compete with them

22. 22 B. CHALLENGES Possible confusion originating in the diversity of approaches and definitions More empirical research is needed beyond the field of "work integration" of vulnerable groups Theoretical work is also needed to conceptualise relations of SE with all other economic actors. MUCH WORK REMAINS TO BE DONE