Introduction to social economy and social enterprises in Denmark January 2012 Thomas Godt Center for Social Economy
Center for Social Economy Knowledge Analysis Perspective Established as a social enterprise Revenue from both public and private sector National Independent, nonpolitical Practice oriented
Center for Social Economy Centre for Social Economy is the national body and primary voice for social enterprises and social entrepreneurship in Denmark. Our sole purpose is to strengthen and promote social entrepreneurship and the concept of social enterprises.
Activities in the centre Counselling social entrepreneurs Working for and with government Working for and with municipalities A special focus on education Working for and with NGO s Policy level and advocacy
The social economic sector part 1 Growth enterprises Enterprises Entrepreneurs Our areas of focus we work on all five levels Potential entrepreneurs
A social enterprise is....an enterprise which: has a social, environmental or health-related mission (purpose) sells a product or provides a service reinvests a potential surplus in the enterprise or the purpose is organizational independent of the public sector and has a cvr. number (official company registration) Source: Center for Social Economy and the National civil society strategy a strengthened involvement of the civil society and volunteer organizations in the social effort, The Danish Government, October 2010.
What is social economy? Social economy has deep roots and can in a Danish perspective be traced back to the emergence of the Folk High Schools and the cooperative movement. Social economy in Europe 2 mill. social enterprises within the EU Amounts to 10% of all enterprises in the EU Employs roughly 11 mill. people or 6% of the total workforce Right now political process in EU with focus on investment capital, social innovation and social entrepreneurship.
What is social economy in Denmark? Profit Non-profit Not-for-profit - Which does not mean that you don t think and act like a professional business!
The social economic sector part 2 Economic sustainability Institutional social enterprises Private social enterprises Revenue from the public market NGOs primarily publicly funded NGO s primarily privately funded Revenue from the private market Financed by donations, grants & sponsorships
The social economic sector Economic sustainability Institutional social enterprises CSØ Private social enterprises Revenue from the public market NGOs primarily public funded NGO s primarily private funded Revenue from the private market Financed by donations, grants & sponsorships
Examples Specialisterne Jobs for autistic people It company Allehånde Køkken Jobs for deaf people Catering company Telehandelshuset Jobs for weak-sighted people Graphics & telemarketing company
Grantoftegård Jobs, training and workability assessment Eco farm and food, school service etc. Education & jobs for disabled youth Tv-production, graphic design, food etc TV-Glad
Specific Tv Glad example 1. Idea http://www.tv-glad.dk/hvem/ 2. Working methods http://www.tv-glad.dk/hvem/ 3. Job identification http://www.tv-glad.dk 4. Work adaption http://www.tv-glad.dk/hvem/ 5. Revenue 2011: ca. 37. mill 6. Income spread Education: 15. mill / Jobs with a compensation jvf. Serviceloven og Lov om Aktiv beskæftigelsespolitik: 15. mill / State budget: 3. mill / Sale products: 4. mill. 7. Employees Ordinary employees: ca. 60 full time (København og Esbjerg) / Special employees: 95 (København og Esbjerg) students: 60
Analysis of social enterprises in Hvem er de? Copenhagen Sociale forretningsfolk (arbejder for at hjælpe udvalgte grupper ved at drive forretning - fx Specialisterne og Proremus) Forretningsorienterede aktivister (hjælper en bredere fælles sag som kulturen eller miljøet ved salg af services eller produkter - fx Roskildefestivalen) Entreprenante socialarbejdere (løser specifikke sociale behov på nye måder, fortrinsvis baseret på offentlig eller privat støtte - fx Dugnad og Muhabet) Professionelle folkeorganisationer (arbejder for store grupper eller samfundsanliggender, primært baseret på donationer og medlemsskaber - fx Ældresagen og Natteravnene)
Virksomhedsstruktur Hvordan er de organiserede? Virksomhedsstruktur A/S Almennyttig fond ApS Brancheorganisation Erhvervsdrivende fond Forening I/S Kooperativ Offentlig institution Personligt ejet virksomhed Selskab med begrænset ansvar (SMBA) Selvejende organisation
Etniske minoriteter Børn og unge Lokalsamfundet, fx et boligområde Handikappede Ældre Familier Hjemløse Voldsramte kvinder Misbrugere (alkohol og Seksuelt misbrugte Homoseksuelle Psykisk syge Ledige Andre organisationer Modtagegrupper Hvem arbejder de primært med? Hvem er din organisations eller virksomheds primære modtagergruppe. Vælg venligst alle de svarmuligheder, der gælder for din organisation eller virksomhed. 50,0% 45,0% 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0%
Socialt arbejde Rådgivning Landbrug Omsorg Bygningsarbejde, Kultur Uddannelse og Underholdning Miljøarbejde Finansvirksomhed, Fødevareindustrien Grafisk design Sundhed Boliger og IT og webdesign Produktion Formidling PR, Marketing, Medier Tryk og udgivelse Religion Detailhandel Sport og fritid Turisme Transport Skralde- og Primære indkomstområde Hvilken slags arbejde udfører de? Inden for hvilket område genererer I jeres primære indkomst? Det betyder indkomst fra salg af et produkt eller en service til kunder ikke fondsmidler(vælg venligst højst 3 områder) 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0%
Omsætning Hvad er deres omsætning? Hvad er jeres totale årlige omsætning? Mindre end 250.000 kr. 250.000-500.000 kr. 500.000-750.000 kr. 750.000-1.000.000 kr. 1.000.000-2.000.000 kr. 2.000.000 5.000.000 kr 5.000.000 7.500.000 kr 7.500.000 10.000.000 Over 10.000.000 kr.
Differentieret indtægtsgrundlag Hvad er den %-vise fordeling af indtægterne? Hvad den %-vise fordeling af indtægtskilderne? 70,00 60,00 50,00 40,00 30,00 20,00 10,00,00
The social economic sector part 3 Economic sustainability Institutional social enterprises Private social enterprises Revenue from the public market NGOs primarily public funded NGO s primarily private funded Revenue from the private market Financed by donations, grants & sponsorships
Framework conditions the business support system A local system nationally controlled In every municipality CSØ works closely together with this system Counselling and advice A new tool developped for social entrepreneurs
Other framework conditions the innovation support system SME focus Support for social entreprises in all sectors But not specific focus on social innovation yet! Upcoming analysis on social innovation Two perspectives Social innovation in social businesses Innovation in social businesses
Social economy in Denmark Current framework conditions & tendencies: National civil society/third sector strategy a strengthened involvement of the civil society and NGO s in the social, environmental and health related effort. Strategy announced by the Ministry of Social Affairs & Ministry of Economic and Business Affairs in 2010, where they acknowledge the importance of social enterprises and present a strategy for the field The strategy focuses on access to investment capital, visibility of social economy and advice/counseling
Social economy in Denmark Municipality strategies Copenhagen Kolding Ærø Viborg Different initiatives Pilot projects Entrepreneurship projects NGO projects PhD projects Different perspectives Education Turism Production Environment
Copenhagen Easy access to public sector Specific counselling to SE s More PPP Cooperate with knowledge inst. Visualize SE effects Create positive environment Pilot projects Public procurement Innovation focus
Kolding Analysis of SE potential Facilitated networking Targeted counselling Mentorships for SE s Public sector training Yearly award
Ærø Specific project Educational facilities SE, municipality and private investor Museum Inn/hostel Work training Education Living
Viborg Pre-analysis phase To produce policy rec. PhD project To help entrepreneurs To help SE s To produce tools and guides To help more entrepreneurs start more and better SE s
And... There is no law or official legislative company form for social enterprises We have a definition but no certificate, license etc. Social enterprises in Denmark do not receive any tax benefits or other benefits (only available for NGOs)
Future perspectives EU presidency 11 actions from the Comission Finance Awareness Legal framework New initiatives Rural areas and social entrepreneurship New national SE project fund (50 mio. Dkr)