Social Entrepreneurship in

Bulgaria - Labour Market

Integration of the Vulnerable

Teodora Demireva
(Member of GECES & GECES Subgroup)
Ministry of Labor and Social Policy of Bulgaria
Why Social Entrepreneurship (1)
Introduction of theoretical and practical aspects of the social
economy and social entrepreneurship concepts that are
relatively new in Bulgaria.
Raising demand to social economy and entrepreneurship
opportunities due to the potential to generate jobs and be a
means for overriding poverty and social exclusion.
Highlighting social advantages through social inclusion by
employment of disadvantaged individuals.
Contribution to the national economy saving budgetary
transfers for social protection including those related to long-
term unemployment. Generating tax revenues as a ratio of GDP.
Why Social Entrepreneurship (2)
Supporting economic and social development, generating
employment and reducing poverty; covering a part of the social
protection network.
Bringing together business efficiency and social solidarity (e.g.
EU member-states owe roughly 12-18% of the employment rate
and 12-14% of GDP to SE).
Introducing entrepreneurial features in services (social cares,
vocational training, certain medical treatment); improving living
standards of disadvantaged persons, overcoming their
marginalization.
Launching a "different entrepreneurial approach" the driver is
not merely the profit but protection against social
disadvantages.
 The European Political Context (1)

EUROPE 2020 - A strategy for smart, sustainable and inclusive

growth
A key concept in the strategy "Europe 2020" is inclusive growth
by focusing efforts and resources to combat poverty and social
exclusion through the development of labor markets, including
under crisis conditions.
The Strategy is based on 3 interlinked thematic priorities, 5
headline targets and 7 flagship initiatives. Social economy is
related to every element of the functional structure of the
Strategy, but it is directly meant under Priority 3 "Inclusive
growth fostering a high-employment economy delivering
economic, social and territorial cohesion."
 The European Political Context (2)
Social Business Initiative - Creating a favorable climate for
social enterprises, key stakeholders in the social economy and
innovation (2011);
Single Market Act I: Twelve levers to boost growth and
strengthen confidence "Working together to create new growth:
Lever 8 - Social entrepreneurship
Single Market Act II: Together for new growth: Key action 12:
Give all EU citizens access to a basic payment account, ensure
bank account fees are transparent and comparable, and make
switching bank accounts easier.
Regulation on European Social Entrepreneurship Funds
(EuSEF)
Programme for Social Change and Innovation
General Block Exemption Regulation (GBER)17
 The National Framework - The
National Social Economy Concept
Vision
The vision of the Government is to establish an operational SE-Sector,
contributing to pro-active inclusion of vulnerable groups, flexible and
stable employment, enhanced territoral cohesion.
The Concepts objectives:
Enable introduction of indicators for identification of SE-entities;
Launch development of norms, supporting SE-development and helping
stake-holders to widespread and apply the spirit of social economy.
Streamline legal and administrative environment for development of
SE-entities (access to financing, social provisions in public
procurement, tax-alleviation, etc.)

http://seconomy.mlsp.government.bg
Main Features of Social Enterprises

They are doing business

Not the profit but the social mission is the
primary aim of the activities
They reinvest the profit (how much?) for the social
purposes of the organization
Democratic membership
 Main Effects of Social Enterprises
Generating employment, job creation
Manifested social effect of their activity; social inclusion of
disadvantaged groups
Satisfying the specific needs in the community
Introduction of social innovations (production of goods and
services for vulnerable groups; use and introduction of
innovative ways for production of goods and services)
Creation of social added value
 Fundraising
EU Bulgaria
ESF

Human Resources Development Operational Programme; Priority

axis 5: Social inclusion and promotion of social economy;
ERDF

Operational Programme "Development of the Competitiveness of the

Bulgarian Economy"
The Government
EU
ESF
ERDF
Regulation on European Social Entrepreneurship Funds (EuSEF)
Programme for Social Change and Innovation
Social Stock Exchanges in Europe
 Financed Operations Under OP "Human
Resources Development" (1)
Social entrepreneurship promotion and
support of social enterprises:
Components:
-Support for development of the existing social enterprises -11
-Support for the creation of new social enterprises - 36

Aim - development of the social economy and creation of social

capital by
supporting ideas for employment, recovery of work habits, skills
for independence for people at risk trough
production of specific goods and services and their
marketing
 Financed Operations Under OP "Human
Resources Development" (1)
Beneficiaries Established social enterprises
34 social service providers, Services in the home and garden;
11 municipalities
Art - workshop
1 beneficiary is cooperation
Workshop for Applied Art
2694 people from disadvantaged
Support Centers for disadvantaged
groups people
Persons with Disabilities - 1090; Social Service Agency
Individuals from minority groups - Nursery
442;
Car wash
Single parents, mothers with 3 or
more children- 190; Information Center
Long-term unemployed - 613; Labour office
Persons leaving specialized
institutions - 199;
Children deprived of parental care -
70;
Former prisoners - 52;
Persons suffering from various
addictions - 10;
Other disadvantaged persons - 46.
 Financed Operations Under OP "Human
Resources Development" (2)
New Opportunities
Component:
- Support for the creation of new social enterprises (to
municipalities)
Established social enterprises:
Public laundry
Social meals
Social Enterprises for development and improving the environment in
the municipalities
Social enterprises to carry out technical activities in support of the
municipal administration
Social enterprises for Traditional Bulgarian souvenirs
567 persons at risk employed and 198 persons - staff in social enterprises.
 Financed Operations Under OP "Human
Resources Development" (3)
Chance for all
Aim - social inclusion of people with disabilities by
supporting specialized enterprises and cooperatives for people
with disabilities to provide training to acquire or upgrade
vocational training and employment for people with disabilities.
344 trained and employed people with disabilities
 Financed Operations Under OP "Human
Resources Development" (4)
Help at Home
Aim creation of sustainable model for provision of services at home for
people who are in partial or complete inability to take care of themselves
Established social enterprises - Municipal enterprises or municipal bodies,
private entities or subsidiaries established in accordance with applicable
law
Target groups:
Unemployed persons
People with disabilities
Elderly people

Types of hourly activities

Activities of personal assistance
Activities for social support and inclusion
Communal activities
 Financed Operations Under OP "Human
Resources Development" (5)
"Compassion"
Aim promotion and real application of equal opportunity policies and
social inclusion of people with disabilities; creation of preconditions for
establishing a real and viable models for partnership between
government and civil society towards improving the effectiveness of
implemented integration policies of people with disabilities.
Who is Eligible:
National organizations representing people with disabilities and
national organizations for people with disabilities
Who are the target groups:
People with disabilities and their families;
Representatives of different communities;
Staff in social enterprises, specialized enterprises and cooperatives of
people with disabilities.
 Good Practice
Models of social enterprises
Model - supply of paid social services, subsidized social
services (Social Assistance Society Drianovo);
Model of social enterprise employment of people with
disabilities who are social services users Daily Centre for
Handicapped Adults (Patchwork Atelier Voneshta Voda
Village);
Model subsidizing social services; beekeeping, production of
honey and by products (Samaritans Society, Stara Zagora);
Model: part-time employment of women victims of home
violence and subsidizing social services; Laundry Atelier,
dwelling and offices cleaning (Open Door Centre Pleven).
 Services of the Social Assistance
Society of Drianovo
Old Age Daily Centre (capacity - 40 persons)
Home Assistance (coverage - 40 persons)
Social Services Bureau (monthly capacity - 40 persons
recipients of respective social services)
Social Rehabilitation and Integration Centre
 Old Age Daily Centre
Social life organization of personal events, national celebrations
and travels to historical places near Drianovo; hot-kitchen,
medical examinations
 Patchwork Atelier Voneshta Voda
Village
Model social enterprise
employment of people with
disabilities who are social service
users Daily Centre for
Handicapped Adults;
Structure of the social enterprise,
labor-therapeutic facility, facilitated
as a patchwork atelier and product
sells linked to the Milenium-
Foundation;
Production of bedding, baby kits and
blankets, gift type products;
Social impact employment of
persons with disabilities,
participating in labour therapy
programmes. A part of the Daily
Centre expenditures are covered by
the social enterprise
 Daily Centre for Old Age
Handicapped
Daily services for 20 adult persons with disabilities above the
age of 18.
Facilities for kinesitherapy and rehabilitation, medical
examinations, social activities, household activities, arts
 Patchwork Atelier
The atelier is equipped by up to date sewing and specific
ironing.
Special fire-protection equipment to avoid inflammation due to
wrongdoing of handicapped staff.
 Advantages of Running Social
Enterprises
For individuals employment with a social enterprises;
For the local community SE meet community needs,
specifically in small municipalities, they streamline the way to
labour markets;
For the state economic advantages (reducing social
transfers), social effect (social inclusion), jobs creation or
meeting the need of a service or a product.
 Thank you!
tdemireva@mlsp.government.bg
+359 2 980 85 30
+359 2 9118 547