Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Social Business Initiative Creating a favourable eco-system for social enterprises, key stakeholders in the social economy and innovation

Key challenges to European policy development reflected in the SBI The crisis calls for reengineering our economic and social fabric, for reprogramming our policies and actions. SE are drivers in social innovation The guiding principle for further developing the single market is the social market economy. SE need a level playing field with all economic actors Cohesion policy instruments are to tackle economic, social and territorial disparities which the Single Market does not reduce by itself. Many SE have a mission that falls into the ESF scope of intervention. The economic crisis is not just a crisis of economic and financial management but of values too. SE are the vanguard of responsible business

What is a social enterprise? Definition of social enterprise that tries to take into account the diversity of economic structures, cultural traditions and legal frameworks across Europe: Trading on the market main objective: make a social impact rather than a profit for owners or shareholders uses surpluses mainly to achieve social goals governance structures involve workers, customers and stakeholders accountable and transparent, innovative and entrepreneurial management

Support to social enterprises is on the EUs growth and jobs agenda. Social entrepreneurs are innovators and drive social change. They generate sustainable jobs, facilitate social and work integration, provide inclusive social services and improve the quality of social and health care; They introduce efficient ways to reduce emissions and waste, and to use natural resources and energy more efficiently ; They focus on innovation and the participatory use of the internet

Traditional private company to generate shareholder value Revenue from trading on the market primary purpose Main source of income Public body Revenue from members, charities, subsidies, investors Any entity engaged in a regular economic activity, irrespective of its legal form. COM Regulation 800/2008 CSR to generate value in the general interest/ through services/products and/or ways of production serving social objectives Hybrid SE Not for profit organisation/ Citizen sector organisation Social Economy Social enterprise

Social enterprise Traditional private company Participation & empowerment of employees & clients Profits are retained in organisation or community Power & hierarchy Profits distributed to shareholders Governance Use of surplus Embedded in a community Quality of work Employee share ownership

Barriers to start, develop and scale social enterprises that can be addressed by EU level action An underdeveloped finance system - throughout the life cycle of a business; Insufficient investment in education and training for developing the necessary mindsets, skills and competences Inadequate support networks and infrastuctures. Lack of awareness and recognition of the social value which social enterprises generate

Social Business Initiative Improving access to funding for social enterprises tailored to meet the specificities of social economy actors: a new framework for social investment funds operating EU-wide and a new financial instrument (fund of funds). Improving the visibility and recognition of social enterprise, facilitate mutual learning and capacity building, and to promote skills development Simplifying European legal and regulatory frameworks to ensure that these include social enterprises on equal terms with other forms of businesses, notably in the fields of pubic procurement, state aid measures for social and local services and capital markets

Map, portray & spread business models of SE Collect, compare & spread SE labels & social impact metrics Set-up and manage a web exchange platform for social enterprise & social investors Increase knowledge, transparency, recognition and visibility of the SE sector Improve management capabilities & create market places Improve the effectiveness of public policies towards the sector Increase numbers, scale, scope and impact of social enterprises by boosting management, public governance and recognition of the social enterprise sector Support mutual learning & capacity building for administrations in promoting & financing SE 5 678

Establish/Improve regulatory framework for SIFs operating EU wide Establish an EU level instrument that provides equity and debt instruments to SIFs and financial intermediaries Introduce an investment priority social enterprise in the SF Regulations Mobilise more private and public investors in SIFs Mobilise Structural Funds investments in SIFs Increase of quantity and quality of social investment supply Support to social enterprises Assistance for support infrastructures BDS, networking etc Increase numbers, scale, scope (by issue & territory) and impact of social enterprises by increasing the access to finance Increase of quantity & quality of plans for social enterprise start-up, development & scaling-up Establishment and operations of intermediaries in the social impact market 1 4 3