Presentation by Agnese Lešinska, Legal Advisor and Researcher of the Public policy centre PROVID at the Social Entrepreneurship Forum in Riga on November 8-9, 2012 For more information visit: http://sefriga.lv/

1. What is social
entrepreneurship?
Agnese Lešinska

2. Research project
• Aim – to identify legal framework (definitions,
criteria), support instruments (financial, non
financial) for social entrepreneurs in 11 EU
countries and provide proposals for Latvia
• Team - PROVIDUS and Civic Alliance – Latvia
• Authors – Agnese Lešinska, Gatis Litvins,
Rasma Pīpiķe, Inta Šimanska, Oskars Kupics,
Katrīne Bušēvica
• Financial support – Soros Foundation - Latvia

3. Situation in Latvia
• No legal framework for SU
• Can be business companies or NGOs (with
limitations)
• No specific financial support (f.e.- subsidies
for unemployed or disabled persons)
• Mostly dealing with unemployment issues
• Start-up companies or not older than 3 years
• Small companies, employing 3-5 permanent
staff

4. What is social entrepreneurship?
- Criteria used in legal frameworks
• Mostly to describe WISE
for example – 1) it is entered in the trade register under the
said Act; 2) it produces goods and services on a commercial
principle; 3) at least 30 per cent of the employees in the
company’s employ are disabled persons, or at least 30 per cent
of all employees are disabled and long-term unemployed
(percentage of placed employees); and 4) it pays all its
employees, irrespective of their productivity, the pay of an able-
bodied person agreed in the collective agreement, and if no
such agreement exists, customary and reasonable pay for the
work done. (Finland)
- Criteria used in theories

5. EMES criteria for SE
• continuous activity producing goods and/or selling
services
• high degree of autonomy
• significant level of economic risk
• minimum amount of paid work
• an explicit aim to benefit the community
• an initiative launched by a group of citizens
• decision-making power not based on capital
ownership
• participatory nature, which involves various parties
affected by the activity
• limited profit distribution

6. European Commission “Social
Business Initiative”
Social entrepreneur is:
• an operator in the social economy
• main objective is to have a social impact rather than
make a profit for their owners or shareholders
• it operates by providing goods and services for the
market in an entrepreneurial and innovative fashion
and uses its profits primarily to achieve social
objectives
• it is managed in an open and responsible manner
and, in particular, involve employees, consumers and
stakeholders affected by its commercial activities

7. Muhamed Junus – social business
• Business objective will be to overcome poverty, or one or more
problems (such as education, health, technology access, and
environment) which threaten people and society; not profit
maximization
• Financial and economic sustainability
• Investors get back their investment amount only. No dividend is
given beyond investment money
• When investment amount is paid back, company profit stays
with the company for expansion and improvement
• Environmentally conscious
• Workforce gets market wage with better working conditions
• ..do it with joy ..

8. Common criteria
• Mission - main objective is to have a social impact
or to solve a social problem
• Profit - limited profit distribution
• Business model - it operates by providing goods
and a service for the market in an entrepreneurial
and innovative fashion
• Management - it is managed in an open and
responsible manner and, in particular, involves
employees, consumers and stakeholders affected
by its commercial activities.
• Appropriate remuneration

9. Contact and find us here:
agnese@providus.lv
gatis@providus.lv
rasma@nvo.lv
inta@nvo.lv
www.providus.lv
www.nvo.lv