Română Patrizia Bussi: How ENSIE is shaping the social economy sector in Europe
Patrizia Bussi, Director of ENSIE discussed at the Enterprising for Tomorrow 2024 conference the role of ENSIE in developing the social economy sector. The focus was on lobbying, legislative changes, and promoting best practices across Europe.
“What we try to do at the European level is really to give a voice to work integration social enterprises and their workers.”
“We try to change legislative documents, policy documents that are done at the European level. One example is the directive on public procurement. We have added an enlargement of the market reservation so there is the possibility to reserve contracts for work integration social enterprises.”
Recommendations for Romania
- “There are pieces of legislation that unfortunately are in a standby position and would need a last push to be effective.”
- “WISEs are paying the tax on profit, and this should be deleted because the profit is used within the enterprise.”
- “Enterprises that are already in a development phase, in a growing phase, need to have support to be more developed than before.”
Patrizia Bussi’s speech underscored the importance of strategic lobbying, legislative influence, and cross-border collaboration in advancing the social economy, with specific recommendations to bolster Romania’s work integration social enterprises.
Timothy Ghilain, EASPD: on the role of networks in improving the implementation of the Social Economy Action Plan
In the second panel of the Enterprising for Tomorrow 2024 conference, Timothy Ghilain, Chief of Staff at EASPD discussed the role of networks in improving the implementation of the Social Economy Action Plan at the European level. He emphasized the importance of organization, collaboration, and shared learning among social economy enterprises.
“EASPD represents service providers for persons with disabilities, all of our members are part of the social economy even if they don’t know it or if they don’t agree with it.”
“If any one organization tries to push for such a reform it’s extremely hard to achieve in the field of social work, we need to work together.”
Key Ideas
Role of Networks in Social Economy:
- Networks like EASPD help organize and unify voices to effectively communicate with European institutions.
- EASPD represents service providers for persons with disabilities, integrating them into the social economy.
Importance of Organization:
- Effective organization allows for better advocacy and representation of social economy enterprises.
- Organized efforts help avoid the dilution of messages and ensure that collective goals are pursued efficiently.
Collaborative Efforts:
- Collaboration among different organizations and countries is crucial for the success of the social economy.
- Sharing experiences and innovative solutions across countries helps address common challenges.
Implementation of the Action Plan:
- Timothy Ghilain emphasized the importance of implementing the Social Economy Action Plan at the national level.
Unified Push for Reforms:
- Timothy Ghilain called for coordinated efforts at both national and European levels to push for social economy reforms.
- The speaker highlighted the role of various European networks and institutions in achieving common goals.
Dorotea Daniele: How Diesis Network is supporting social enterprises in Europe and globally
Dorotea Daniele, Head of EU Partnerships at Diesis Network spoke at Enterprising for Tomorrow 2024 conference about the organization’s mission, strategic goals, and activities to support and promote social economy enterprises in Europe and globally.
Key discussion insights
Role and Mission of Diesis
Diesis has been dedicated to the development of the social economy since its foundation in 1997, now encompassing over 60 organizations across more than 30 countries, including Europe, Africa, Canada, and India.
Strategic Goals and Activities
Diesis emphasizes participation, knowledge, and visibility as core components of its strategy to amplify the impact of the social economy.
They support events both at national and European levels, organize communication campaigns, and raise awareness on social economy topics, such as socially responsible public procurement.
Knowledge and Visibility
The organization focuses on increasing the visibility of the social economy and sharing best practices and research. It collaborates on projects related to digital and green transitions, emphasizing the importance of staying competitive and addressing economic, societal, and environmental challenges.
Support for Social Enterprises
Diesis works on facilitating access for social enterprises to markets and public procurement opportunities.
The organization also emphasizes capacity building, improving management and technical skills, particularly in new sectors like digital and green economies.
Recommendations for Romania
The speaker highlighted the need for an enabling ecosystem with supportive legislation and policies, coordination between different ministries, financial tools beyond grants, and increased visibility for social enterprises.
Emphasis was also placed on sharing good practices, participating in socially responsible public procurement, and building the capacity of social enterprises.
“Knowledge is important for the social economy because it’s really crucial for social enterprises to remain competitive and to address economic, societal, and environmental challenges.”
Dorotea Daniele, Head of EU Partnerships at Diesis Network
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Juan Antonio Pedreño, President of Social Economy Europe: Social economy in Europe
Juan Antonio Pedreño, President of Social Economy Europe, spoke at the Enterprising for Tomorrow 2024 conference about the the social economy in Europe, highlighting its importance and the efforts being made to strengthen it.
“The European institutions have given utmost importance to the social economy and placed it at the center of their work agendas. Its relevance is not only due to being an unquestionable economic reality of the first order with more than 3 million companies with more than 14 million people throughout Europe.”
“From the moment vice president of the European Commission Valdis Dombrovskis and Commissioners Schmit and Breton a presented the European Action plan for the Social Economy in December 2021, social economy started working hand in hand with the European institutions.”
Juan Antonio Pedreño, President of Social Economy Europe
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Nicolas Schmit, European Commissioner for Jobs and Social Right: Empowering Europe’s Social Economy
Nicolas Schmit, European Commissioner for Jobs and Social Rights, spoke at Enterprising for Tomorrow 2024 conference about the European Social Economy Action Plan and its impact on social economy enterprises.
“The momentum we have started with our Social Economy Action Plan in December 2021 continues to this day. The Action Plan consists of an ambitious set of 60 concrete initiatives covering all aspects of the ecosystem.”
“Member states must now create strategies with a political commitment and resources needed for the social economy to thrive. I look forward to seeing the Romanian government strategy which I know is under preparation.”“I encourage you to make the most of this event to expand your networks and to shape the future of the social economy in Romania.”
Nicolas Schmit, European Commissioner for Jobs and Social Rights
Initiatives and Resources mentioned by Nicolas Schmit
- The launch of the Social Economy Gateway provides a single entry point for stakeholders seeking information on EU funding, policies, and initiatives.
- The Youth Entrepreneurship Policy Academy, launched in collaboration with the OECD, offers mentoring and idea exchange for upcoming entrepreneurs.
- EU funds are supporting social economy entities through startup grants and training programs.
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Niina Karvinen, Diak: How ESIC project is pioneering social innovation through education
Niina Karvinen, Project Manager and RDI specialist in social entrepreneurship and social innovation projects at the Diaconia University of Applied Sciences in Finland (DIAK), spoke at Enterprising for Tomorrow 2024 conference about the European Social Innovation Campus (ESIC) project and its vision in terms of fostering social innovation in the social economy sector, across EU.
Discussion Highlights
- Overview of the ESIC Project:
- The ESIC project is part of the Erasmus+ initiative and aims to upskill and reskill 5% of the workforce and entrepreneurs in the social economy sector each year. It involves 15 partners from 10 European countries, spanning from vocational education to higher education, and includes social economy organizations and enterprises.
- Research and Curriculum Development:
- The project has completed a systematic literature review, which will serve as the foundation for developing a curriculum and training programs over the next four years. The focus will be on social innovation competencies, including skills, attitudes, and knowledge.
- Digital and Green Transitions:
- A key aspect of the project is addressing the digital and green transitions in the social economy. The project aims to equip workers and entrepreneurs with the necessary skills to adapt to these changes.
- Collaborative Efforts and Future Plans:
- The project emphasizes the importance of collaboration among European partners to create effective training modules that can be adapted to different national contexts. The ultimate goal is to enhance social innovation capacities across Europe.
“We have finalized our systematic literature review six months into our work. The review will serve as the foundation for our upcoming curriculum and training programs.”
Niina Karvinen, Diak
Timothy Ghilain, Chief of Staff at EASPD: how the B-WISE project is shaping the WISE sector across EU
Timothy Ghilain, Chief of Staff at EASPD, spoke at Enterprising for Tomorrow 2024 conference about the B-WISE project – Blueprint for Sectoral Cooperation on Skills in Work Integration Social Enterprises, an Erasmus + project coordinated by EASPD with the support of ENSIE.
“Digitalization cannot be done on its own. We need to have a coherent approach to train, retrain, and reskill in all skills and targeted skills depending on the needs of the individual.”
Timothy Ghilain, Chief of Staff at EASPD
Discussion Highlights
The B-WISE project is an initiative by the European Commission designed to create a model for increasing the skills of workers in work integration social enterprises (WISEs). It involves 27 partners across 13 countries and aims to develop a blueprint that can be replicated throughout the EU.
Research and Needs Assessment:
The project began with extensive research to identify the skills needs of staff in WISEs across the EU. This research highlighted significant variations in needs based on geographic and socio-economic contexts.
Digitalization and Skills Training:
A major focus of the project is on digitalization. The project seeks to bridge the digital skills gap by creating a coherent approach to training and reskilling individuals. This includes addressing the specific training needs before introducing digital skills training.
Development of Training Modules:
The project has developed various training modules tailored to the needs identified during the research phase. These modules are available on the project website and are being piloted in partner countries.
Certification and Adaptation:
Efforts are underway to certify the training modules with national authorities. The goal is to provide adaptable training programs that can be customized to fit the specific context of each country.
Importance of Government Support:
Timothy Ghilain emphasized the crucial role of government and local authorities in supporting digitalization efforts through funding, reskilling programs, and providing access to necessary resources.
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Cristina Dumitrescu, European Investment Fund: EIF role in supporting the social economy
Cristina Dumitrescu, Senior Investment Manager, European Investment Fund (EIF) spoke at Enterprising for Tomorrow 2024 conference about the role and impact of the EIF in supporting the social economy, particularly through financial and guarantee products aimed at micro, small, and medium-sized enterprises, including social enterprises.
“We have mobilized over 5-6 billion euros in guarantees and financing products, supporting around 2,600 micro and social enterprises in Europe.”
Cristina Dumitrescu, Senior Investment Manager, European Investment Fund (EIF)
Discussion Highlights
- Role of the European Investment Fund (EIF):
- The EIF is a European institution that assumes the risk to facilitate access to finance for European SMEs (small and medium-sized enterprises), including micro-enterprises, social enterprises, and startups.
- Products and Services:
- The EIF operates two main lines of business: financial products (loans and guarantees) and equity products (investments in funds).
- History and Impact:
- The first financial products dedicated to financial and social inclusion were launched in 2010 under the Progress Microfinance program, targeting micro-enterprises created by vulnerable groups such as the unemployed, women, youth, and seniors.
- Subsequent programs include the Easy program and the InvestEU program, which have significantly contributed to the social economy.
- Achievements:
- Over the past 15 years, the EIF has mobilized over 5-6 billion euros in guarantees and financing products, supporting around 2,600 micro and social enterprises across Europe.
- Notably, 70-75% of these enterprises received their first credit through these products, highlighting the impact on financial inclusion.
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Cyril Gouiffès, European Investment Fund: Equity products in supporting social impact ventures
Cyril Gouiffès, Head of Social Impact Unit, European Investment Fund (EIF) spoke at Enterprising for Tomorrow 2024 conference about the role of equity products in supporting social impact ventures and how these products complement debt and guarantee products.
Discussion Highlights
- Equity Investment for Social Impact:
- The speaker emphasized that the role of EIF is to invest in funds that target startups with a social impact strategy. These are not just any venture capital funds, but those with a strict measurement of impact.
- Equity investments differ from microfinance or non-bank financial institutions as they do not have restrictions on the amount of turnover for the companies they finance.
- Growth and Market Size:
- The speaker highlighted the growth of the market over the years. For instance, in 2014, the total social impact investment was 10 million euros in one fund, whereas last year, it grew to 700 million euros across several funds.
- Challenges and Opportunities in Romania:
- Despite active investments in Europe since 2013, the speaker notes the lack of investment in Romanian social impact funds. This is not due to rejection but because they have received very few proposals from Romania over the past decade.
- Accountability and Measurement of Impact:
- The speaker stresses that social finance must not only report on social impact but also be accountable for the impact performance. This involves strict measurement and ensuring that investments truly add social value.
“Back in 2014, the total amount of social impact investment within that 1 billion euros was 10 million euros in one single fund. Last year, the total investment volume of the equity team amounted to 3 billion euros, with 700 million euros focused on social impact.”
“We have to date no investment in Romania… it’s still a bit of a mystery why in these 10 years we have not managed to be able to invest in a Romanian social impact fund.”
“Social finance will strive and flourish if and only if it can be very strong on its social value add. It is not enough to report on social impact; entrepreneurs, investors, intermediaries, and ourselves have to be accountable for the impact performance.”
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Michał Radziwiłł, Inpulse Investment: financial instruments for supporting the social economy
Michał Radziwiłł, Manager at Inpulse Investment discussed at the Enterprising for Tomorrow 2024 conference the importance of financial instruments in supporting the social economy, particularly focusing on the role of microfinance and venture capital in financing social enterprises.
Discussion Highlights
- Role of Microfinance:
- Michał Radziwiłł highlighted the significance of microfinance in the social economy. He emphasizes that microfinance, though not directly part of the social economy, plays a crucial role in providing financial support to social enterprises.
- Simplified Financial Products:
- The speaker stresses the need for simple financial products that are easily understandable for social entrepreneurs who are just starting. He suggested that high-level financial engineering might be a future step, but currently, basic loan products are essential.
- Government Support and Risk Sharing:
- Michał Radziwiłł mentioned the importance of government programs that support the social economy. These programs not only provide a legal framework but also offer financial backing that helps mitigate the risks associated with lending to social enterprises.
- Social Venture Capital:
- The manager of Inpulse Investment talked about the social venture capital fund he managed in Poland. This fund was a pilot program aimed at exploring how social enterprises could be financed through equity investments. Despite being small in scale, such funds can reach areas that larger funds might find difficult to access.
“You need to have simple products. High-level financial engineering might be the next step, but for now, we need products that social entrepreneurs starting their journey can easily understand.”
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