Promoting social enterprises
Countries in the region are confronted with significant social costs relating to the political and economic transitions of the 1990s. While some gains have been impressive and the majority of countries are benefiting from economic growth, this growth has not transformed into progress for all groups of society. This has led to the emergence of visible of ‘losers’ of transition, vulnerable groups (including Roma, people with disabilities, ethnic minorities, women and the elderly) that are characterized by inequality and exclusion from the political and economic mainstream. Social Enterprises offer innovate solutions for addressing these development concerns in the region. The contributions that social enterprises can make from a social and economic point of view are manifold: - Supply social, educational, health and general economic interest services to local communities, including to people who are unable to pay;
- Contribute to the economic development of deprived communities;
- Create new employment opportunities as a result of the new services supplied;
- Favour the integration of disadvantaged people;
- Contribute to the enhancement of social cohesion and more equitable economic development at the local and national levels.
In marked contrast to the old EU member states, the potential contribution of social enterprises in the most target countries, both as welfare providers and employment creation tools remain largely unrealized. In order for Social Enterprises to optimize their full potential, attention must be given to obstacles impeding promotion of Social Enterprises in countries of the region. UNDP RBEC seeks to build awareness on the contributions that Social Enterprises can make to employment generation, supporting vulnerable groups, and contributing to service delivery. A few countries, however, such as Poland and Serbia are quite advanced, and in these countries, UNDP is exploring the establishment of Government funds to support Social Enterprises (in Poland) and helping to reform the legal environment (in Serbia).
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