Brussels, 30/10/2014 (Agence Europe) - There is growing interest in social enterprise, but its potential is still not sufficiently exploited. Although the EU adopted a specific initiative (EUROPE 10511) almost three years ago to the day, the second phase has yet to be launched and an action plan for the social economy needs to be created, according to the recommendations of the European Economic and Social Committee (EESC), which were presented on 16 October as part of its social enterprise project.
Defining social enterprises is not an easy task - so much so that the EESC has opted for a description rather than a definition. In this description, a social enterprise has the following characteristics, amongst others: - its aims are mainly social rather than profit-based; - all profit is reinvested; - there may be a variety of legal forms and models; - it produces goods and services, often of general interest; - there is a strong element of participation and co-decision for staff. By carrying out consultations with players in the social economy, the EESC has arrived at a raft of consensual recommendations “on what the EU institutions' key priorities should be for the coming years” to promote this type of entrepreneurship.
There are many recommendations, but naturally it is the absence of a definition which throws up the biggest problem. This issue has already arisen at the European Parliament, which had misgivings over the idea of creating a specific label for this type of enterprise (EUROPE 10693). The idea of a label has not been included in the recommendations, but the EESC feels that the problem could be circumvented by drafting an action plan at European level, to include a definition of statuses for foundations, associations and mutual companies in Europe. This is another way of giving a shot in the arm to the creation of specific legal recommendation for social enterprises, and therefore recognition which is totally separate from that granted to the concept of corporate social responsibility.
At the same time, the Commission should develop and launch a second phase of the initiative for social enterprise, draw up guidelines on the implementation of new rules for awarding public contracts, carry out additional studies and launch a pilot awareness project. Included in these recommendations is the need to include social enterprise in the 'Small Business Act', to promote it within the education system and to set in place support programmes and adequate funding, for instance by creating a specific European fund, particularly for the post-start-up and growth phases of enterprises of this kind. (JK)