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Social Enterprises in CEEC and the CIS: Regional Challenges and Roles of Different Stakeholders Michaela Lednova, UNDP B

Social Enterprises in CEEC and the CIS: Regional Challenges and Roles of Different Stakeholders Michaela Lednova, UNDP Bratislava Regional Centre

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Social Enterprises in CEEC and the CIS: Regional Challenges and Roles of Different Stakeholders Michaela Lednova, UNDP B

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  1. Social Enterprises in CEEC and the CIS: Regional Challenges and Roles of Different Stakeholders Michaela Lednova, UNDP Bratislava Regional Centre Regional Workshop : Regional Workshop “Strengthening the Sustainability of Community-based Development through Social Entrepreneurship”, 4 December, Bratislava

  2. Overview • Main Problems and Challenges Hindering Social Enterprise Development • General Recommendations How to Support Social Enterprises in the Region and the Role of Different Stakeholders

  3. Challenges to SE Development in the Region Government (central) • Legal recognition • SEs not legally recognised (Uzbekistan, Ukraine) • Several legal inconsistencies or limited definition (Slovakia, Romania) • Restricted environment towards CSOs (Turkmenistan, Belarus)

  4. Challenges to SE Development in the Region • Fiscal Framework (Government) • Absence of special regulations/fiscal exemptions • Fiscal and security deductions • Reduction of indirect taxes • Engagement in economic activities not allowed for associations and foundations (Serbia, Bosnia, Ukraine) • Decentralisation – access to procurement

  5. Support to Social Enterprises – Role of Different Stakeholders Government (central) • Creating enabling legal and fiscal environment • Law on and definition of SEs • Coherent and consistent policies at all levels – enabling elements : tax incentives, simpler registration procedures, norms for redistribution, access to credits, interest rates • Fiscal measures : fiscal and social security deductions, reduction of indirect taxes, tax deductions on donations

  6. Support to Social Enterprises – Role of Different Stakeholders • Creating public schemes and support centers • Strengthening regional Agencies for SMEs/ Social Development fund • Government funding schemes

  7. Challenges to SE Development in the Region • Low Awareness and Political Recognition • Neoliberal paradigm vs. solidarity values • Perception of role of SEs being marginal • Mistrust towards economic activities carried out by TSOs • Past legacy (Croatia, Belarus)

  8. Challenges to SE Development in the Region • Statistical Data • Unavailability of reliable statistical data or complete statistics on SEs and third sector (number, share of GDP, contribution to employment etc.)

  9. Challenges to SE Development in the Region • Institutional context • Non-existence of umbrella structures (at national level) • Non-existence of financial and business support bodies/services (organisational, financial and technical support)

  10. Challenges to SE Development in the Region • Lack of business education and entrepreneurial skills (Uzbekistan, Croatia) • Low capacity to guarantee quality of services • Financial dependency • Low stock of social capital

  11. Support to Social Enterprises – Role of Different Stakeholders International Organisations/Donors • Awareness raising • Conducting research • Transfer of knowledge and experience • Support national institutions • Providing support (financial, know-how) to SEs and TSOs • Involving business community • Coordinating assistance

  12. Support to Social Enterprises – Role of Different Stakeholders Role of Local Actors NGOs/Private Sector/Local Governments • Awareness raising • Partnership building • Social contracting • Networking • Transparency

  13. Thank you!

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