Social Entrepreneurship and Social Enterprises in Slovenia: Strengths and Weaknesses From an Analysis of the Institutional Framework

Social Entrepreneurship and Social Enterprises in Slovenia: Strengths and Weaknesses From an Analysis of the Institutional Framework

Nina Tomaževič (University of Ljubljana, Slovenia) and Silvia Cantele (University of Verona, Italy)
DOI: 10.4018/978-1-5225-6298-6.ch011

Abstract

The main purpose of the chapter is to present the analysis of the institutional framework for social enterprises in Slovenia. In order to achieve this purpose, the selected definitions of social entrepreneurship are offered, and the context of the study is presented. The focus on the situation in Slovenia includes a systematic description of historical background of social entrepreneurship, statistical data, legal regulation and national policies, key stakeholders and support mechanisms, certification schemes and social reporting, social investment markets, and finally, a SWOT analysis and a list of challenges Slovenia is facing in the field of social entrepreneurship.
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Background

Social enterprise is a key element of the European social model. It is closely linked to the Europe 2020 strategy (EC, 2010) and makes a significant contribution to society. The Social Business Initiative (EC, 2011) was launched in 2011 by the European Commission. It contains a number of actions to support further development of social businesses/enterprises. It proposes ways to improve social businesses' access to funding (including EU funding through the Structural Funds and the future setting-up of a financial instrument to provide social investment funds and financial intermediaries with equity, debt, and risk-sharing instruments), measures to improve their visibility and a simplified regulatory environment (including a future proposal for a European Foundation Statute, forthcoming revision of the public procurement rules and state aid measures for social and local services).

Key Terms in this Chapter

Social Enterprise: An organization that is directly involved in the sale of goods and services to a market, but that also has specific social objectives that serve as its primary purpose.

Stakeholder: An individual, a group, an organization, a member, or a system that affects or can be affected by an organization's actions.

Institutional Framework: The system of laws, regulations, procedures, stakeholders with their roles and norms, that shape socioeconomic activity and behavior.

Social Entrepreneurship: The use of start-up companies and other entrepreneurs to develop, fund, and implement solutions to social, cultural, or environmental issues.

SWOT Analysis: A framework used to evaluate an organization’s (or system’s) position by identifying its strengths, weaknesses, opportunities, and threats.

Slovenia: A Central-European member state of European Union – joined in 2004.

European Commission: The European Union’s politically independent executive arm. It is responsible for drawing up proposals for new European legislation, and it implements the decisions of the European Parliament and the Council of the EU.

Social Economy: A third sector of mixed capitalist economies distinct from the private and public sectors. It is based on cooperative, not-for-profit, and voluntary rather than paid activities carried out within communities, across national economies, and internationally.

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