Abstract

Social entrepreneurship is a long-discussed issue in the countries of the European Union as well as in other countries worldwide. In the Slovak Republic this issue mostly interests younger people who search the possibilities for social entrepreneurship in their home regions in order to eliminate the lack of accessibility of certain services. The social economy is considered as an important tool of social inclusion. The Slovak Republic adopted as one of the few Member States of the European Union the act on social economy and social enterprises. We consider the creation of legislative framework of social economy and social enterprises in Slovakia as an innovative solution, even in the comparison with other Member States of the European Union. The aim of this paper is to present to the scientific public the importance of setting up social enterprises at the national level. An essential addition to the objective is also to show the width of potential that social enterprises have after the adoption of the Act on Social Economy and Social Enterprises.
 Legislation eliminates potential debatable redistribution of the profit of social enterprises. The profit from social entrepreneurship should primarily cover the basic life needs of the disadvantaged groups of persons as well as generally beneficial activities for the community and/or region. Social entrepreneurship gets into discourse of public policy mainly as a tool aimed to provide the opportunity for the persons that were unemployed for a longer time to gain working habits again or for persons that suffer from multiple disadvantages to become active on the labour market. It may also be a reliable instrument for solving the sale of goods or provision of services which are not provided or insufficiently provided by the private sector.

Highlights

  • The development of the social economy and social entrepreneurship in European countries was activated in the 1970’s and 1980's

  • Growth of unemployment evoked by the development of new technologies in the more advanced states, public finance deficit and the growth of risk of social exclusion as well as the crisis of the social state was the main reason for raising such development

  • According to Trčka (2013), “social entrepreneurship and social enterprises are linked with identification elements which are characterized especially by: solution of problems of the local community in the residential structure; economic sustainability generating profit with subsequent investing in equipping and education of employees as well as in saturation of needs of generally beneficial services; prevention and/or elimination of social exclusion and segregation of disadvantaged groups of persons; participation of employees in decision making; innovative projects for the development of own community in the residential structure development of organizational cooperation”

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Summary

Introduction

The development of the social economy and social entrepreneurship in European countries was activated in the 1970’s and 1980's. According to Trčka (2013), “social entrepreneurship and social enterprises are linked with identification elements which are characterized especially by: solution of problems of the local community in the residential structure; economic sustainability generating profit with subsequent investing in equipping and education of employees as well as in saturation of needs of generally beneficial services; prevention and/or elimination of social exclusion and segregation of disadvantaged groups of persons; participation of employees in decision making; innovative projects for the development of own community in the residential structure development of organizational cooperation”. The content of these factors is relatively identifiable by their proper SWOT analysis After their evaluation the success of social enterprise depends only on detailed preparation of the process model of the social enterprise according to which individual activities are distributed to all employees. The third type is the most typical strategic solution for the entire Central Europe

Legal Forms and Types of Social Enterprises in Slovakia
Socially Beneficial Services of Social Economy
Subjects of Social Economy
Social Enterprise
Partly Social Enterprise
Registration and Register of Social Enterprises
Findings
Conclusion
Full Text
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