Social entrepreneurship – work that brings added value
Social entrepreneurship means producing goods or providing services to address a social problem or create a significant social benefit for society. More than 100 social enterprises are registered in Latvia in various sectors and areas, but they are all combined with the objective of creating a favourable social impact on society.
As the social enterprise law entered into force on 1 April 2018, 143 companies have received social enterprise status, currently 128 are active social enterprises, 15 companies have been cancelled or withdrawn over time. In 43 cases, the status of a social enterprise has not been granted (rejected), or the applicant has withdrawn the submission.
By November 17, 2020, the “development finance institution Altum” (Altum) had been submitted in total 189 Grant applications in the social entrepreneurship programme. Altum granted 98 grants for a total amount of 6,197 milj.EU R, rejected (or tenderer refused) 81 Grant application. Altum concluded 93 Grant contracts with both social enterprises and social entrepreneurship performers, when the social enterprise law was not yet in force, 5.783 million lats. EUR. Since the start of the Esf project OF the Ministry of Welfare (2016) 35 companies have already completed their business plans in social entrepreneurship and continue to be active in the social field.
The most popular activity of social enterprises is work integration with 25 per cent of registered companies. The aim of social enterprises in labour integration is to employ groups of people at risk of social exclusion. In turn, the proportion of enterprises active in the field of education – schools and pre-school institutions (21%) – often using alternative methods is increased, allowing students to participate in class groups with special needs. Similarly, social enterprises are active in the sport and health sector 15%, with the creation of inclusive civil society and cultural diversity 12%, support for population groups at risk of social exclusion 8%, provision of social services 6%, environmental protection IN 4% and other areas 9%.
The largest proportion OF THE 53% social enterprise is located in Riga, 18% in Riga, 13% Kurzeme, 6% Vidzeme, by 5% in Zemgale and Latgale.
From 30 November to 6 December of that year, a social entrepreneurship week will take place in Latvia, within which online masters and forum will take place, providing useful advice on how to launch social entrepreneurship and work successfully in this sector:
- 30 November at 11.00 online masters class “five steps to start social entrepreneurship in their city”;
- 1 December at 11.00 online masters class “practical tips to find your client”;
- 2 December at 11.00 online masters class “breaking business canons: social entrepreneurship as a tool for economic and societal sustainability”;
- 3 December at 11.00 online forum “Social entrepreneurship in Latvia: opportunities and benefits”.
The homepages of the Ministry of Welfare will be able to watch the masters and forum under “News” or Facebook account https://www.facebook.com/labklajibasministrija/!
Consulting for Social Enterprises for Business Plan Development
In order to facilitate the preparation of quality business plans, the Ministry of Welfare from 2020 provides the opportunity for social entrepreneurs to receive free advice for the development of a business plan on social entrepreneurship, finance, marketing, accounting and taxes. Each social enterprise can receive 70 consultations. 12 companies have used this option (each company has used an average of 25 consultations).
Social entrepreneurship launcher idea contest
A competition for social entrepreneurship launchers will be launched in December 2020. Ideas can be submitted by the end of January 2021. Each bidder will be able to submit one business idea. The estimated financial support in the form of a grant is estimated at eur 5 000 to EUR 50 000. A grant of 10% from the total funding applicant will have to be provided from its own resources. If the aid is received, the applicant will have to act as a limited company which will obtain the status of the social enterprise and implement the business plan. The expected deadline for the implementation of the business plan and the achievement of the results by September 2022.