SOCIAL ENTREPRENEURSHIP: CHALLENGE NOT ONLY FOR DEVELOPING COUNTRIES BUT ALSO FOR THE EU

Abstract

Social enterprises (businesses) represent an emerging sector not only in developing countries but also in the EU. The deepening of social problems associated with high unemployment of graduates, persons at age over 50 years and other vulnerable groups in the labour market brings new impulses for designing public policy and development of cooperation between the different actors (role of NGOs, financial intermediaries, local authorities, etc). The paper focuses on the environment analysis - regulatory approaches, forms and types of support, quality of financial services at European level and states and regions from Western, Central and Northern Europe, involved in the learning Network for Better Future of Social Economy. We can say, the status of the social economy and opportunities are different in each country as a result of reflection of value orientation of society, the quality of the environment. However, it is possible to identify common problems and typical ways to support social economy. It means to overcome lack of co-operation between financial sector, NGOs and public sector inproviding funding for social enterprises, to provide mix of private and public funds in order to solve problem connected with funds insufficiency. It is necessary to set up integrated support schemes allowing the use of various types of financial instruments (grant mechanisms, loans using financial engineering instruments). It is necessary to couple the investment in social enterprises with investment in human capital.