Entrepreneurship
Theme: Social Enterprise
Cross-cutting themes covered: - Governance and Strategy
Name of project: The Social Firm Development Project
City: Prague
What is it? The Social Firm Development Project aims to develop a model of social enterprise suitable for the Czech Republic. This was achieved through a detailed study and the creation of two social firms. The project is running from August 2005 until December 2007.
Who is it? The project is co-ordinated by the Civil Society Development Foundation (NROS). The two social firms established through the project are run by voluntary sector organisations, Fokus Prague and Sananim. Moreover, international partners in Italy, France, Germany and the UK have allowed the Prague partners to learn more about the experiences of the social enterprise sector in other EU countries.
Where is it? The project aimed to impact on the governance and strategy of the social economy in Prague and the wider Czech Republic.
Who funds it? The Social Firm Development project has a budget of €321,000, financed through the EU EQUAL programme and through national funds.
How does it work? Promoting good governance of the social economy: The terms ‘social firm’ and ‘social economy’ are relatively new concepts in the Czech Republic. As such, there is no legislative framework for the social economy in the country, and few mechanisms exist to finance and support activities in the sector. To address this, the project developed a publication that sets out a theoretical model of social enterprise for the Czech Republic. This included:
Raising awareness: One of the main goals of the Social Firm Development Project was to broaden mindsets and raise awareness of the social enterprise concept in the Czech Republic. This was achieved through a publicity campaign, which aimed to support the creation of new social firms on the ground, and encourage legislative change at the national strategic level.
Anything else? The project has also supported the creation of two social enterprises, led by Fokus Prague and Sananim.
A social enterprise network, ‘Building Bridges’, has also been set up through the Social Firm Development Project, to allow emerging social enterprises in the Czech Republic to learn from each other.
What are the results? The project has revealed that although the conditions for the social economy in the Czech Republic are not ideal, it is possible to foster social enterprises, particularly if the recommendations from the Social Firm Development Project (in terms of finance, business support and legislation) are taken on board.
Is the model transferable ? Many elements of the Social Firm Development Project are transferable, in particular, the exchange of experiences/best practices between countries where the social enterprise sector is very established (e.g. Italy), and countries where it is still in the development phase (e.g. the Czech Republic).
Building on local competitive advantages? There is recognition in the Czech Republic that the Social Firm model is a way of integrating disadvantaged people into the labour market. With relatively high numbers of people with drug dependencies and mental health problems, social firms are seen as a financially sustainable alternative to benefits and charity, particularly in Prague.
What are the barriers to transferability? Lack of awareness of the social enterprise sector among the public administration and NGOs constitutes the largest barrier to transferring this project, and supporting the development of the sector in the Czech Republic. Moreover, a strong belief in an ‘omnipotent’ welfare state in some countries, able (and even obliged) to take care of all its citizens, might result in a barrier to social enterprises providing services that have traditionally fallen into the remit of the public sector.
