Support for social entrepreneurship in Rezekne municipality
Social entrepreneurship, an effective instrument for tackling social problems, is a rapidly growing sector both in Europe and around the world. Although it is still a relatively new concept in Latvia, a growing number of social enterprises and challenges are addressed by more and more social enterprises each year and offers a wide range of solutions. The social enterprise is like a hybrid between a traditional company and a non-profit-making company. The objective of a social enterprise is to achieve social benefits by obtaining income in this process which is diverted to achieve the social objective and the development of the activity of a particular enterprise.
SIA fregate is one of the few companies in Latgale which have acquired the status of a social enterprise. According to the latest data of the Ministry of Welfare, on 30.11.2020. from 128 active social enterprises in Latvia, there are only 6 companies in Latgale. THE SIA fregate received a financial institution Altum grant as a labour integration company in the context of the specific support objective of the operational programme “Growth and Employment” of 9.1.1. “to increase the integration of disadvantaged unemployed persons into the labour market” in the framework of Measure 9.1.1.3 “Support for social entrepreneurship”, which aimed to ensure the steady growth OF SIA fregate and integrate three disadvantaged unemployed persons into the labour market over a two-year period. The project received Grant funding of 90% for employees' wages and related taxes over 24 months and the acquisition and renovation of assets of the company.
In Europe, social entrepreneurs are active in different areas. There are countries where social entrepreneurship is related only to labour integration (Finland, Poland, Lithuania, Greece, etc.), but is a part of countries where a social enterprise can operate in almost every area of activity where there are problems which can be addressed by the principles of development of the social enterprise (Great Britain, Belgium, France, etc.). By studying European national practices, it can be concluded that the most often social enterprises are active in the field of labour integration – engaging in labour market persons who have lost employment or who have difficulties, for various reasons, to become involved in the labour market. Socially sensitive groups of persons belong to disadvantaged unemployed persons, persons with disabilities, persons with mental disabilities and other persons.
More information on social entrepreneurship can be found on the website of the Ministry of Welfare www.lm.gov.lv, www.altum.lvas well AS SIA fregate with its positive experience, we can share any lead.
Prepared by: Anatolijs Kozlovs, Member of THE Board OF SIA fregate
Photo: A. Kozlov
