Abstract
In this paper, social entrepreneurship as a developing type of entrepreneurship is analyzed. On the level of the European Union (EU), social entrepreneurship is widely supported by different initiatives which aim to develop a suitable legal, administrative, and financial environment for social enterprises, but also allowing member states to regulate them individually. This paper focuses on the social entrepreneurship in Slovenia, where it is strictly shaped by the legislation. Consequently, social enterprises need to meet the legislation’s requirements which hinder their quantity and development. Additionally, the scope of social enterprises is narrowed to those companies that received the formal status of social enterprise. In the paper provided will be the data on social enterprises in Slovenia with some recommendation for further development of the framework for social entrepreneurship in the country.
Highlights
Social entrepreneurship is an innovative type of entrepreneurship, with a high level of responsibility to the society
The OECD (1999) defined social enterprises as “any private activity conducted in the public interest, organized with an entrepreneurial strategy, but whose main purpose is not the maximisation of profit but the attainment of certain economic and social goals, and which has the capacity for bringing innovative solutions to the problems of social exclusion and unemployment”, while the European Commission (European Commission, 2011) defined a social enterprise as “an actor in the social economy whose main objective is to have a social impact rather than make a profit for their owners or shareholders
The international study Global Entrepreneurship Monitor (GEM), for example, found that there are 3.2% of individuals who are currently involved in the creation of social enterprises, while there are 7.6% individuals involved in the creation of profit-oriented enterprises on average in the world (58 countries) (Bosma et al, 2016)
Summary
Social entrepreneurship is an innovative type of entrepreneurship, with a high level of responsibility to the society. The OECD (1999) defined social enterprises as “any private activity conducted in the public interest, organized with an entrepreneurial strategy, but whose main purpose is not the maximisation of profit but the attainment of certain economic and social goals, and which has the capacity for bringing innovative solutions to the problems of social exclusion and unemployment”, while the European Commission (European Commission, 2011) defined a social enterprise as “an actor in the social economy whose 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. Social entrepreneurship strengthens social solidarity and cohesion, encourages people's involvement and volunteer work, enhances the innovative ability of the company to address the social, economic, environmental and other problems, provides an additional range of products and services in the public interest, developing new employment opportunities, providing additional jobs and social integration and professional reintegration of the most vulnerable groups in the labour market (the objectives of social entrepreneurship)”. In addition to creating jobs the feature of social enterprises is performing socially useful activities (e.g., social tourism, eco-food production, youth work, fair trade, and promotion of healthy lifestyle)
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