This document summarizes a strategic plan presented at the 3rd International Conference on Quantitative and Qualitative Methodologies in the Economic and Administrative Sciences in Athens. The plan aims to develop support services for Social Cooperative Enterprises (KoinSEp) in Greece. It conducted a survey of existing KoinSEp that found immature business models and a need for startup funding and services. The strategic plan proposes 3 axes to address obstacles through central and regional support mechanisms, financial grants, and financial tools. Key activities include incubator services, training, grants for job creation and operational plans, and developing a microfinance institution. The plan seeks to rapidly activate Greece's social economy ecosystem.
The need for the development of support services for Social Cooperative Enterprises
1. 3rd INTERNATIONAL CONFERENCE ON QUANTITATIVE
AND QUALITATIVE METHODOLOGIES IN THE ECONOMIC
AND ADMINISTRATIVE SCIENCES
ATHENS MAY 23-24, 2013
The need for the development of
support services for Social
Cooperative Enterprises
Antonios Vorloou
Ministry of Labor, Social Security and Welfare
2. • Range of concepts in the different EU Member
States:
– solidarity economy
– third sector
• Differences in institutional frameworks and
terminologies
• Inspired by common values such as:
– solidarity
– social cohesion
– Supremacy of the individual over capital
– social Responsibility
– Democratic decision-making
Social Economy
3. Social Economy
Participants are not driven by profit seeking,
but
profits are reinvested for the benefit of the business
and society.
It's a different way of doing business
with the general interest, economic development, social
dimension and the democratic functioning
4. Social Economy in the EU
It employs over 11 million workers
6% of the total
France: 10% GDP and 12% employment
5. Social Economy in Greece
• High levels of unemployment
• Especially in vulnerable parts of the population
Social Economy
• Job creation
• Promotion of social cohesion
• Promotion entrepreneurship in vulnerable
groups
6. Law on Social Economy and Social
Entrepreneurship
Social Cooperative Enterprise
creating “socially oriented entrepreneurship”
7. • Urban cooperative of social purpose with limited
liability of its members which produces or trades
products or services
• A business that is managed equally by the members,
and its operation is based on collective welfare while
pursuing the profit resulting from actions that only
serve the public interest.
What is a Social Cooperative Enterprise
8. • one member - one vote regardless of the number
of cooperative shares
• Distribution of profits annually, as follows:
• Reserve up to 5%
• Bonus to workers up to 35%
• Re-investment for job creation and the business
activities (social purpose) at least 60%
General Characteristics
9. Social Purpose
• Profit is a means to achieve the social purpose
rather than the purpose of Koin.S.Ep.
• It is fulfilled by:
– Selling products or services that have a social
benefit and also bring profits
– Spending the profits for providing products or
services which create social benefit without
income
10. Social Innovation
• Instruments: new ideas (products, services
and business models) that simultaneously
meet more effectively the needs of society
• Purpose: To create new social relationships or
collaborations.
• These innovations not only benefit society
but also enhance the ability of society to act.
11. Social Innovation
• Muhammad Yunus (Bangladesh)
• Nobel price for Peace
• Grammen Bank
• Microcredit to non bankable
persons
Example of Social Innovation in Greece:
• Social Cooperatives for mentally ill
• Parents Cooperative of Chalandri (KoinSEp)
12. Social Franchising
• Its aim is to replicate a successful business
model of social entrepreneurship - Innovative
idea
• Reduce cost and the risk for model
development
13. Categories Social Cooperative Enterprises
(Koin.S.Ep.)
• Inclusion
• Social Care
• Collective and Productive Purpose
14. Inclusion
• Aimed at integration into economic and social life of persons
belonging to vulnerable population groups:
– people with disabilities
– dependent or detoxified from substances people
– seropositive
– prisoners / ex-prisoners
– juvenile offenders
• In a Inclusion Koin.S.Ep. at least 40% of workers should belong to
vulnerable population groups
• Establishing requires at least seven persons.
15. Social Care
• Aimed at producing and providing products and
services of a social - welfare in specific
population groups such as:
– the elderly,
– infants,
– children,
– people with disabilities and
– people with chronic diseases
• Establishing requires at least five persons.
16. Collective and Productive Purpose
• Aim at promoting the local and collective interest,
employment, strengthening social cohesion and local or
regional development.
• Production of goods and services in areas such as:
– culture
– environment
– ecology
– education
– public utility
– local products
– conservation of traditional activities and professions
• Establishing required at least five persons.
18. Questionnaire
• In order to determine the needs of the
emerging sector, the Ministry of Labor has
distributed a questionnaire to the registered
KoinSEp so as to identify the maturity of the
business models being developed and
implemented.
19. Questionnaire
• Included:
– General info
• Number of members
• Sector of Activity
– Business Model
• Type of Activity
• Resources (human and other)
• Clients (identified, who, marketing)
• Income (state, private, %, pricing policy)
• Social impact (measured, how)
– Other needs
20. Responses
• 35 questionnaires answered
• Most from productive purpose
• Most rely on state aid for launching and initial
stages and gradually directed to private sector
income
• Business models not well developed
• Clients roughly identified
• Marketing policy not developed
21. Strategic Vision
• Social Economy and Entrepreneurship will
contribute to sustainable economic
development at the local, regional and
national level strengthening social cohesion.
22. Purpose of Strategic Plan
• Rapid activation of the Ecosystem of Social
Economy and Entrepreneurship, to create a
favorable environment for the development
of Koin.S.Ep.
23. Obstacles
• Lack of appropriate and accessible support services for
Social Entrepreneurs
• Lack of specialized grant programs for starting up Koin.S.Ep.
• Unfavorable economic environment for the development of
financial tools to assist Koin.S.Ep.
• Administrative and other obstacles to the development of
Social Entrepreneurship
• Low awareness of the new institution and the value of social
entrepreneurship
24. Strategy
• Provide a framework of support and development of
Koin.S.Ep.
• Provide the necessary start-up capital to support Koin.S.Ep.
at their first steps.
• Development of financial support services in the short and
long term, in order to further expand and develop Koin.S.Ep.
• Removing legal and administrative barriers and creating
favorable conditions for the development of Koin.S.Ep.
• Informing local communities about the benefits of social
entrepreneurship
• Developing transnationality actions to better utilize the
experience of other Member States
25. Axes
• 1st: the support of the social economy by
creating central and regional support
mechanisms
• 2nd: the financial support with grants for
Koin.S.Ep.
• 3rd: the financial tools to strengthen and
expand Koin.S.Ep.
26. 1st Axis
Activity 1:
Central Support
Mechanism
Activity 2:
Observatory of SE
and SE
Activity 3:
Regional Support
Mechanisms
Activity 4:
Complementary actions by
MoL services
• Development of tools / methodologies
• Training of Multipliers
• Supporting national networks
• Counseling / Mentoring
• Support pre start-up / erasmus
• Incubator services
• Networking (Conferences / Fora)
• Publicity
• Policy support for SE
• Publicity - Workshops
• Transnational Cooperation
27. Axis 2
Activity 6:
Vouchers for
incubator type
services
Activity 9:
Grants on the basis of
jobs created
Activity 5:
Support for the
creation of KoinSEp
(pre start-up)
Activity 8:
Grant for the initial
operational plans of
Koin.S.Ep. for acquisition
of shares by employees
Unified call for proposals
Activity 7:
Training
29. • On-line Application
MoL services
Technical
Steering
Committee
Consulting support
Technical
Support
Activity 1:
Central Support
Mechanism
National Level
Activity 3:
Regional Support
Mechanisms
Activity 6:
Vouchers for
incubator type
services
Activity 2:
Observatory of SE
and SE
Regional Level Activity 9:
Grants on the
basis of jobs
created
Activity 5:
Support for the
creation of
KoinSEp
(pre start-up)
Activity 10:
Complementary
Repayable Grant
Activity11:
Preparatory actions
for the development
of a Micro Finance
Institution
Activity 4:
Complementary
actions by MoL
services
European
Commission
Activity 8:
Grant for the initial
operational plans of
Koin.S.Ep. for
acquisition of shares
by employees
Δράςη 7:
Κατάρτιςη
εργαζομένων ςε
ΚοινΣΕπ
Private Providers
of Support
Services
Axis 1
Axis 2
Axis 3
Unified call for
proposals
• Development of tools / methodologies
• Training of Multipliers
• Supporting national networks
• Policy support for SE
• Publicity - Workshops
• Transnational Cooperation
• Counseling / Mentoring
• Support pre start-up / erasmus
• Incubator services
• Networking (Conferences / Fora)
• Publicity
30. Consultation
• Strategic Plan submitted for consultation until
15 March 2013, in following web site:
• http://195.167.92.159:8443/diaveykeko/Δημό
ςιαΔιαβοφλευςη.aspx
• Several suggestions have been integrated into
the plan