Workshop 2: Serbia – Social entrepreneurship and sustainability Belgrad – Study Tour (28.02-03.03.2012) The project „Overcoming the Digital Divide: Access for Rural Communities” / „Incluziunea digitală a comunităților rurale”

1. Social
Entrepreneurship
Development
– Preconditions and Perspectives –
Miodrag Shrestha,
Belgrade 29.02.2012.

2. Structure of the presentation
 Definitions
 Stages in the development of the
social entrepreneurship
 Social Entrepreneurship and
Telecenters
 Serbia Case Study

3. Definition(s)
“A social enterprise is a business
with primarily social objectives
whose surpluses are principally
reinvested for that purpose in the
business or in the community, rather
than being driven by the need to
maximise profit for shareholders and
owners.”
Social Enterprise: a Strategy for Success
Department of Trade and Industry, 2002

4. Definition(s)
“Social Enterprise is an organization with
an explicit aim to benefit the community,
initiated by a group of citizens and in
which the material interest of capital
investors is subject to limits. They place a
high value on their independence and on
economic risk-taking related to ongoing
socio – economic activity.”
(Borzaga and Defourny, 2001)

5. Definition(s)
Social enterprises are not-for-profit
private organizations providing goods or
services directly related to their explicit
aim to benefit the community. They rely
on a collective dynamic involving various
types of stakeholders in their governing
bodies, they place a high value on their
autonomy and they bear economic risks
linked to their activity.
(Defourney and Nyssens)

6. Main Characteristics of the
Social Enterprises
It has both Economic and Social Dimension
 Economic meaning they produces goods and
services; they should be market oriented;
they bare substantial economic risk; they
might be highly innovative with lots of
voluntary work.
 Social Enterprises have clear social goal,
commitment to the community; they are
independent and autonomous in their work
but open for different partnerships; they are
not for profit organisations.

7. Stages in the Development of
Social Entrepreneurship
We can identify 3 stages of development
of social entrepreneurship:
 Initial(Pioneering) Stage
 Institutionalisations Stage
 Differentiation (Developed) Stage

8. Initial (Pioneering) Stage
 Bottom – up emergency of social
enterprises in various sectors of interest to
the community
 Not legally regulated (recognized)
 Operate despite the lack of enabling
institutional and legal environments
 Low level of networking and no umbrella
organisation
 High degree of innovation
 Strong reliance of voluntary work

9. Institutionalizations Stage
 Social enterprises rely on paid, trained staff
 Grassroots, bottom up social enterprises recognized
by state and business sector
 There are on going discussion on legal framework
and some policies developed
 Awareness of social entrepreneurship is widespread
 There are excellent social enterprises set as an
example
 Networking among social enterprises and other
stakeholders is rising
 There are financial instruments

10. Differentiation (Developed)
Stage
 Social enterprises are well consolidated organised
in the network(s) and expanding
 Legal framework is set up and functions
 There is partnership with state/local and business
sector
 Social enterprises are managed by educated social
managers
 Citizens are aware of social enterprises and support
them
 More financial schemes for the support of social
enterprises
 Social enterprises are linking internationally and
exporting their model

11. Preconditions for the development
of the social entrepreneurship
 Actors (social enterprises, CSOs,
government)
 Awareness raising (informative and
education)
 Gradually improvement of the Legal
framework
 Building up of the financial support for the
social enterprises
 Promote social enterprises (best examples)
 Network
 Building capacities of the social managers

12. Social Entrepreneurship
and Telecenters
 Where is the connection?
Telecenters are:
 Innovative,
 Community based,
 They can be market oriented,
 Have different legal forms,
 They can be Tele – Hub, Community TeleCenter

13. Case Study Serbia
Telecenter :
 Part of Teledom Association network and
strongly connected with one abroad Teledom
 Head of the Telecenter is very well educated in
economy and computer sciences.
 Mission: to use modern means of information
and communication technologies to contribute to
the creation of equal opportunities for people
from micro communities - especially rural areas

14. The enterprise has extensive product
portfolio categorized in six product groups:
 Providing computer literacy certificates
 Informal education (both youngsters and adults)
 Entrepreneurship support
 Commercial web portal
 IT competing
 Promoting tolerance
- However, some of these initiatives were
single actions and were not repeated.

15. In consultant’s opinion, the areas
that should be further explored and
exploited in social enterprise are:
 Informal education of both young people and
adults in areas of computer literacy and personal
qualification (European Computer Driving License
- ECDL
 Developing educational materials and utilizing it
via e – learning, as extension to the first activity.
 Web portal – business and tourist guide for their
region. This website has strong potential to
become tourist and investors guide for the area.
 Entrepreneurship support – via different courses/
training for business planning and fundraising.

16. Informal education
 Multimedia education
 IT basic and advanced courses
 Education of countryside tourist service providers
 Professional courses in agriculture area
 Training for the Trainers in informal education
 Training for the Coordinator of the informal education
 Training for IT course leader
 Training for the Coordinator of the Teledom
 Trainings for job hunting
 Basic EU project proposals courses writing
 Best entrepreneurial practice (sales and marketing in
agricultural business areas)

17. Target customers before / after
intervention
 At the beginning, the enterprise targeted
almost everyone: students,
unemployed, entrepreneurs, elementary
school pupils, high school pupils etc.
 Now, the company targets several
target groups: students, high school
pupils and online population who wants
to gain computer literacy or award
diploma.

18.  Consultant strongly recommended connection
with local high school in order to complement
official school portfolio with knowledge that
Telecenter can provide.
 Similar with the local municipality and regional
authorities through establishing support for
promoting idea of long life learning and
professional qualification might result in better
sales of courses in community

19. Strengths Weaknesses
Excellent premises No strategy
Excellent computer No sales force
equipment No clear Job descriptions
Recognized professional Too broad product
qualification portfolio
Energetic leader
Opportunities Threats
Chance to develop Decreased interest in
cooperation with National professional qualifications.
Employment Service
Chance to develop
connections with
municipality

20. KEY OBJECTIVES
 Tocreate optimized product
portfolio.
 Tooffer complete product
portfolio to the market via sales /
marketing strategy.

21. Proposed action plan
 To create sales strategy and
action plan.
 To create product portfolio
 To execute sales strategy

22. Short – term impact (marketing, sales,
HR, operations etc)
 Creation of viable product portfolio.
 Design of sales letter template.
Long – term impact (structure, culture
etc)
 Changed organizational culture – outward
oriented rather than self – sufficient.
 Being more responsive to market or
community trends.
 Creating more market driven culture.

23. RECOMMENDED ACTIONS IN
FUTURE
 To invest time and other resources in marketing
activities.
 To develop service that helps National Employment
Service. The enterprise could sell trainings for
entrepreneurs and be supplier of National
Employment Service in order to promote self-
employment. Also, the ECDL certification might be
offered via National Employment Service as an
asset for easier employment.
 To develop connections with municipality
authorities.
 To develop connection with local schools and
neighboring towns / villages.

24. Useful links
 Europe 2020 - Inclusive growth
http://ec.europa.eu/europe2020/priorities/inclusive-gr
 DG Enterprise and Industry – Social economy
http://ec.europa.eu/enterprise/policies/sme/promoting
 DG Employment, Social Affairs and Inclusion -
Europe 2020 initiatives http://
ec.europa.eu/social/main.jsp?langId=en&catId
=956

25.  DG Employment, Social Affairs and Inclusion -
PROGRESS program http://
ec.europa.eu/social/main.jsp?langId=en&catId
=987
 DG Employment, Social Affairs and Inclusion -
Progress Microfinance http://
ec.europa.eu/social/main.jsp?langId=en&catId
=836
 DG Internal Market and Services – Social
business http://
ec.europa.eu/internal_market/social_business/index

26.  SOCIAL ECONOMY EUROPE
http://www.socialeconomy.eu.org/?lang=en
 CIRIEC study: "The Social Economy in the European Union" (2007)
http://www.socialeconomy.eu.org/spip.php?article420
 Peer Reviews 2008 - The social economy from the perspective of
active inclusion
http://www.peer-review-social-inclusion.eu/peer-reviews/2008/the-social-e
 Work Integration Social Enterprises and their role in European
Policies
National Cross Cutting Reports
http://www.isede-net.com/content/social-economy/wise-work-integration-s
 Social Enterprise: A new model for poverty reduction and
employment generation
http://www.emes.net/fileadmin/emes/PDF_files/News/2008/11.08_EMES_

27. Discussion:
Questions, Comments, Remarks

28. Thank you for your attention!
Miodrag Shrestha
smiodrag@yubc.net

29. Socijalno preduzetništvo u svetu i
EU
 Procenjuje se da sektor socijalnog preduzetništva u
svetu danas zapošljava oko 40 miliona ljudi, sa
preko 200 miliona volontera.
 Preko 30 univerziteta u svetu ima programe
socijalnog preduzetništva, uključujući: Kolumbiju,
Harvard, Stanford, Oxford.
 U EU različiti oblici socijalnog preduzetništva
(zadruge, organizacije civilnog društva, fondacije,
socijalna preduzeća) čine dva miliona privrednih
društava, odnosno 10% i zapošljavaju 11 miliona
ljudi (oko 6%)

30. Socijalna preduzeća u Srbiji 2008
Oko 1150 organizacija koje su imale odlike soijalnog
preduzeća
 162 NVO,
 898 zadruga,
 55 preduzeća za zapošljavanje lica sa invaliditetom,
 24 zavisna spin-off preduzeća,
 13 agencija za razvoj malih i srednjih preduzeća,
 6 poslovnih inkubatora i
 2 organizacije drugog oblika