Business Model of Social Entrepreneurship: Bulgarian Experience

Abstract

For two decades, the European institutions have recognized the ability of social entrepreneurship to correct social and economic imbalances and achieve objectives of common interest. The European Parliament has defined it as the basis of the European social market model. The EU’s interest in social entrepreneurship stems from its link with several autonomous development policies: social inclusion, employment policy, the social economy and civil society. According to the European Economic and Social Committee in 2012, social entrepreneurship plays an important role in the EU: • 2 million social enterprises/10% of all European enterprises, • produces 10% of Member States’ GDP, • an employer is 11 million or 6% of the employed, • accelerated creation of social enterprises—1 out of 4 new companies are social enterprises. Contribution of social enterprises to key EU objectives in the social field: active inclusion of people out of the labour market; quality services of general interest; social innovation in the context of social change. Social entrepreneurship is a driver for regional development. It occupies market niches in which the state fails to offer enough services and the market fails to make enough profits. Social entrepreneurship encourages the dissemination of good practices at local level by: reinvesting profits in geographic areas where they are created; mobilizing local actors and local resources; creating an entrepreneurial culture; linking activities to local needs/services in a community/; keeping activities at risk of disappearing because they are not profitable/crafts/; creating social capital. Over the last 10 years, social entrepreneurship in Bulgaria has undergone a strong development. Different forms of social entrepreneurship are implemented in practice, and we can already talk about experience in different sectors. This report aims to present the applied business models of social entrepreneurship in agriculture and small businesses in urban environment. The advantages and disadvantages of used business models are presented and analysed. The report presents the effects and impact of these models on the respective communities and for the development of the region.