Social economy and social entrepreneurship – the manifestation of social responsibility in the era of globalization

Abstract

Currently, in Europe as well as in V4 countries, more and more interest is noted in the social economy. It is the answer to the socio-economic consequences of globalization. We can consider social entrepreneurship to be a business of the future with social responsibility, which favors social mission before making a profit. It is a hybrid business model that brings innovation, promotes regional development and improves quality of life of the local population. The social entrepreneurship, with the creation of sustainable jobs, reduces unemployment, protects the environment, provides goods and services for which the state and the private sector are not interested. It applies participatory and democratic corporate governance, thereby increasing the responsibility of all stakeholders. In this paper we point out that the development of social economy and social entrepreneurship in Slovakia has its own specifics. The practice precedes the theory, which brings many problems and creates unfavourable conditions for development of social entrepreneurship. We identified weaknesses in the social economy sector and offered recommendations for practice, especially for representatives of public administration and legislators. Moreover, we consider the training of future employees, managers of social entrepreneurship, local government representatives, as well as the provision of information to the general public on this area as a key factor for the development of the concept of social economy. Information for the preparation of this paper was drawn from the laws, expert studies and economic literature.