A first step to stimulating entrepreneurship among the young people we are working with as youth workers and not-for-profit organisation is mapping and measuring the existing entrepreneurial ecosystem in our country and exchange the best practices among ourselves. The purpose of this analysis is to identify learning, development and funding opportunities for young people who want to launch their start-ups or social projects. We will collect all the data from 6 different countries and publish it in only one guide.
For the purpose of mapping, the entrepreneurial ecosystem is defined as a product of three elements:
1. the surrounding environment, more precisely the business environment and investment climate,
2. its interacting actors ,and
3. the evolving culture and attitudes.
Question 1
What is the national strategy of your government regarding start-ups and youth entrepreneurship?
National policies
•Europe 2020: National Reform Program, update 20151;
•National Concept for Social Economy, 20111;
•Social Economy Action Plan 2014-20151;
•National Strategy for Poverty Reduction and Promoting Social Inclusion1;
•Operational Program "Human Resources Development" 2014-2020 (OPHRD 2014-2020) 1.
•Operational Program "Innovation and Competitiveness" 2014-2020
Bulgarian Perspective. In implementing Europe 2020, each Member State has adopted its own reform strategy which identifies key national targets and actions to achieve them within the framework of the common European ones. Under the National Reform Program of Bulgaria 2020 (updated 20159), some of the main areas of structural reforms concern the modernization of labor market access services, social support, health care and education. The introduction of active employment measures, including those from vulnerable groups, through mechanisms to ensure sustainable employment, incentives for employers to open new jobs, qualification programs, retraining and acquiring key skills, etc., is envisaged. However, at the national level, the policy for the development of the social economy and social enterprises remains out of the common efforts to achieve the goals set out in the National Reform Strategy. Although the National Social Economy Concept has been prepared as a strategic document with a "forward-looking vision of future changes in the legal framework and practices of public authorities and a vision for integrating sectoral policies", the relevant sectoral policies are still not clear and consistent tied to it. This prevents the creation of a favorable legal and financial environment for the development of social enterprises. For the period 2014-2020, a scheduling of funds under two operational programs10 to be used to promote "social entrepreneurship", but it remains unclear how much they will in practice promote sustainable models and initiatives without good regulatory environment for development and without clarification in fact, any organizations will support.
The Social Enterprise in Bulgaria
Bulgaria has not introduced a legal definition of the SP, nor has a clear and explicitly defined regulatory framework. Strategic documents in the sphere distinguish between "social economy enterprises" and "social enterprises", with the intention of the first group to cover a wider range of persons, part of which are also SP12. In addition, since 2012, statistical information on operating SPs in Bulgaria has been collected. In 2013, the NSI included benchmarks for respondents in terms of whether they were self-identified as SPs or not. The main features of a social enterprise are:
• Achieving a social goal;
• Making an economic activity;
• Reinvestment of profits in a profitable way, rather than distribution among the partners, shareholders, founders / members.
As regards the types of legal forms in which the social enterprise can develop, there are inconsistencies and discrepancies between separate strategic documents and programs
There is no single and generally binding framework for SP characteristics. This makes it difficult to relate them to an enterprise on a case-by-case basis and to assess whether or not it is "SP". Addressing this issue would have a bearing on more efficient planning and more efficient spending of public funds to promote the development of social entrepreneurship
Legal-organizational forms
Social entrepreneurship can take place in different legal-organizational forms. Frequent and appropriate format (in terms of the criteria for designating an enterprise as SP 8 in the Bulgarian context is NGO
The reasons for this conclusion are as follows:
1) Achieving a non-profit (including social) goal is leading in this legal-organizational form and legally required;
2) NGOs have a legally guaranteed opportunity to carry out a direct economic activity that has to meet strictly defined criteria15;
3) Under the legal provisions, business revenue should be used to achieve the non-profit objectives of NGOs;
4) the law prohibits the distribution of profit generated by the business activity between founders, members, members of bodies or other related or unrelated persons in the organization (as opposed to traders).
The aggregation of these legally guaranteed characteristics of the goals and activities of NGOs determine the potential of the NPLC to develop SP. Next, this potential is complemented by the advantages to the other economic entities that NGOs have in the search for social effects:
Their existence is determined by the needs of the people in a community, they are created by them, and people recognize them as an opportunity to overcome a social problem;
The relationship with the community helps them to identify social needs and to select the appropriate interventions for their satisfaction;
They can generate additional resources and build on by combining public resources with donations.
Reaping this potential must be linked to overcoming some of the weaknesses common with NGOs - insufficient managerial skills, especially in relation to fundraising activities; as well as deficits in other important economic skills such as marketing and sales, human resource management and accounting - deficits that are inherent to SMEs and which are ultimately overcome. The social enterprise can also be identified as a trade association
Existing commercial companies legislation does not provide for profit-sharing and profit-sharing constraints such as those for non-profit-making companies. For this reason, in order to get closer to the perception of PS, the commercial company must either be formed by a NGO or provide for similar rules in its internal development documents. We have recently seen interest from start-up entrepreneurs, especially young people with jobs in business-friendly sectors, nature-friendly, energy-efficient or having an effect on people's health and well-being. They need to be given support to develop their ideas in social business, paying attention to the particular limitation of their private interests in favor of publicly meaningful social goals.
Specialized enterprises and cooperatives of people with disabilities are commercial companies that meet additional criteria for ensuring the employment of people with disabilities and should be entered in a special register of the Agency for People with Disabilities. They are recognized as a social enterprise by definition.
Special registration
A JA operating within the legal forms discussed above does not in itself require special registration in order to be "recognized" as such. Various laws provide for a number of additional registrations to be made depending on the specific goods and services that the JS will provide. These include, for example, registration as an employment intermediary before the Employment Agency, registration of social service providers before the Social Assistance Agency (SAA), registration of medical institutions in the regional health inspection, registration of training organizations at the National Agency for Vocational Education and Training (NAVET).
Taxation
Regardless of the legal form under which social enterprises are created, several basic taxes are relevant to its business. Income business activity of the SP is subject to annual corporate tax of 10% on profits. In statutory cases, the social and representation costs of the SP will be subject to tax on costs, source tax and value added tax.
Tax preferences
Bulgarian legislation provides for different categories of preferences that are relevant to the activity of the SP. Some of them can be used regardless of the legal form of the SP. These are, for example, the tax incentives for the donor to certain vulnerable groups (people with disabilities, including their technical means, socially disadvantaged, disabled or non-parents, drug addicts for their treatment), tax benefits for employers of long-term unemployed or people with the possibility of VAT exemption of certain supplies of goods and services. As NGOs registered for public benefit are exempted from payment of a local tax donation. SP-specialized enterprises and cooperatives of people with disabilities may request the assignment of the annual corporate tax due from them and use it fully for the integration of people with disabilities or for the maintenance and disclosure of jobs for employed persons in the next two years. as well as tax relief, the SP's founders who are registered as NGOs in public benefit such as a medical institution or a specialized enterprise or a cooperative of disabled people.
Data from the National Statistical Institute. According to the National Statistical Institute (NSI) data for 2012, 14872 enterprises have defined themselves as "social". 2717 of them are registered as trading companies and cooperatives. SP as trading companies / cooperatives have realized a total of 3597289 lv. Revenues from their activities and made BGN 3419789 for operating expenses. The economic spheres in which there are the most SP-trade companies and cooperatives are trade and repair of motor vehicles and motorcycles (964) and manufacturing (395 pieces). 2155 of the self-identified as SPs are registered as NGOs, with only 253 of them having profited from their business activity. In 2013, the number of self-identified as SPs is less than 3612. Of these, 2046 are registered as trading companies and cooperatives. The spheres of economic activity of SP-trading companies / cooperatives remain unchanged1. 1381 of SP-trading companies / cooperatives are profitable1. 1566 of the self-identified SPs are registered as NGOs, with only 197 of them having profited from economic activity (totaling BGN 22116). These same non-profit organizations have realized income from non-profit activities amounting to a total of BGN 179675. Data from the Register of Specialized Enterprises and Cooperatives of People with Disabilities to the Agency for People with Disabilities In August 2015, in the register of AHU1 there are 281 specialized enterprises and cooperatives with disabilities. They provide employment for 3364 people with disabilities (ie people who have acquired a TEMP for% reduced working capacity)
Policy Principles to Encourage the Development of Social Enterprises in Bulgaria.
The future national policy for the promotion of social enterprises should provide for specific measures which, regardless of their nature (legal, financial, administrative), must respect and result in those principles.
Promoting and sustaining
• Support for social entrepreneurship should also include the allocation of public resources to support social enterprises in tackling social problems;
• the planning of the objectives, the order and the expected results in providing a public resource to support social enterprises should be based on a periodic assessment of the environment, taking into account the specificities of the practices and models learned at one time and their potential to work towards social purpose
Equal treatment and reduction of administrative burden
• providing a package of incentives available to all forms of social enterprise;
• predictable fast and affordable administrative procedures;
Efficiency and Efficiency
• Implementation of programs and measures after needs analysis, coherence and adequacy of objectives;
• relevance of resource input to result - a clear assessment of the financial and social outcomes,
Coordination and decentralization
• Establishment of mechanisms for the participation of social enterprises in the planning and evaluation of the social entrepreneurship policy at national level;
• creating conditions for the development of social entrepreneurship at local level, according to the specificities and needs of the respective territory by involving the municipalities in this process (through local and regional strategies.
Solidarity and partnership
• Creating conditions for interaction, consultation, open dialogue and sharing of responsibility between all stakeholders
It is necessary to set the JI criteria at the legal levelTo provide concrete financial stimulus measures it should be clear who will be their beneficiaries.
Question 2
What is the strategy if the Education/Labour Ministry regarding early entrepreneurial education?
ROADMAP FOR THE DEVELOPMENT OF SOCIAL ENTREPRENEURSHIP IN BULGARIA
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Goal: |
ROADMAP FOR THE DEVELOPMENT OF SOCIAL ENTREPRENEURSHIP IN BULGARIA |
Execution status |
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Objectives of the National Concept for Social Economy |
Objective 1: To serve as a starting point for introducing identification criteria for enterprises and organizations from the social economy Objective 2: To serve as a basis for creating a favorable administrative and legal environment for the development of social economy enterprises (access to finance, social clauses in public procurement, tax incentives, etc.) |
Indicator |
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Result |
• Clear definition of the SP • SPs are easily created / identified (indicator-less time or reduced number of administrative steps) • The number of SPs grows (indicators in percent) • Equal opportunities for all SPs (the growth of firms identified as SPs would be the most important indicator) • Growth in the amount of public resources that are used by the SP (more mechanisms and capabilities) • Diversified and easy access to public resources (growing number of JSs that use them) • Increased service / product quality (number of customers choosing SPs via vouchers or other mechanisms) |
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Responsible institution |
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Министерство на труда и социалната политика |
Assessment |
Preliminary |
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Directorate "Living Standard, Demographic Development, Policies and Strategies" |
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Partners |
state institutions |
Council of Ministers Ministry of Health Ministry of Education and Science Ministry of Youth and Sports Economic and Social Council National Council for Tripartite Cooperation National Council for the Integration of People with Disabilities Agency for Social Assistance Employment Agency Disability Agency |
NGO |
Members of an inter-ministerial working group on Social Economy at the MLSP |
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National Assembly |
Labor, Social and Demographic Policy Committee Health Commission Committee on European Affairs and Control of European Funds |
Others |
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Justification and description of the activity |
1. Acceptance of separate regulation for social enterprises 1.1 Prepare common criteria for the JS should be done at the law level. On the one hand, given the trends in the development of the SP in the EU, the significant resource for its development, including at the national level, calls for the introduction of regulatory regulation of long-established social relations that the Bulgarian state has stated will use as a tool for achieving of national development goals. Next, regulation at the law level will give sustainability to the understanding of the JU, and will thus impose and guarantee systemic planning and efficiency in allocating financial resources to support its development. 1.2. Legislative regulation of JI criteria should be the subject of separate laws to be a separate chapter in an existing law (eg SMPS). The law defining the JU should outline the basic principles underpinning current or future State support instruments and the objectives of the support
2.General exemption for State aid The application of State aid rules to SP funding is inconsistent in Bulgaria. In order to systematize the practice in this sphere it is necessary to have: 2.1. General guidance to State aid administrators for the correct application of EU rules in this area. It is appropriate to draw up practical handbooks, information leaflets and the like that take into account the need for a preliminary individual assessment of the recipient of the grant and the type of economic activity and the consistent application of the possibilities for a higher threshold of eligible public support. 2.3.When planning future support mechanisms for the JU, it is imperative to analyze in advance the applicability of the State aid rules to the specificities of the JUs and their activities.
3. Opportunities for greater decentralization in the provision of public services to private providers
It is necessary to ensure equal access to the possibility of providing public services by the JU, irrespective of the legal form under which they are created. For this purpose, it is necessary to adopt: 3.1.normative prediction of the possibility of accumulation of the so- cross-financing; 3.2 Amendments to the Law on Healthcare Institutions, which allow NGOs to be a provider of health services. 3.3. The provision of a mechanism for the outsourcing of education services by the state (similar to the social bargaining mechanism stipulated in the Social Assistance Act) in the School and Preschool Education Act. This will ensure the funding of the SP activities in the field of education, covering specific vulnerable groups who either can not afford access to education and training or are not covered by the education system (due to existing public attitudes or peculiarities of the community they live in ) and therefore a more complex and nontraditional approach. 4. Market liberalization and allocation of public resources 4.1 Mechanisms for government subsidizing goods and services for vulnerable groups should be as close as possible to the rules of the traditional competitive market. The introduction of flexible mechanisms to allocate this subsidy according to the supplier's choice of customer will encourage the development of an entrepreneurial culture among traditional providers of such services and will bring them closer to the concept of SP. An analysis should be made of which types of goods and services are appropriate in the Bulgarian context of introducing a voucher system or individual budgets. 4.2.In the sphere of governance of state and municipal property, it is necessary to adopt common principles and simplified rules for its use by the SP. Amendments to the LPA and the SDA are needed to provide for flexible mechanisms for renting preferential prices using such property as well as periodically updating and publishing information on free sites for rental or free use by the JS. 5. Collection of information and analysis An assessment of the impact of the SP's activity should be provided as part of the mandatory collection of statistical information, including its analysis. The Competent Institution - National Statistical Institute should provide, as part of the Statistical Information Strategy, for the performance of such an analysis of the collected data. The periodic review of the results of such analyzes will clarify the specific policy frameworks and support that the State needs to plan and deliver to the JU. In addition, such an analysis will help assess the achievement of the objectives under the operational programs (including SPs) and other funding mechanisms, as well as how effective and efficient the funding is. 6. Reduce the administrative burden 6.1. Completing the reform of the registration of NGOs to the Registry Agency is a step towards achieving a faster, easier and more accessible administrative procedure for NGOs and a way to reduce the administrative burden for SPs created as NGOs. 6.2 The specific additional registrations that the SP most often perform should also provide for the possibility of doing them electronically. There is a need to reduce registration documents, with most of them being provided internally, rather than being required by applicants. For this purpose, it is necessary to make appropriate amendments to the IMI, OSA, EPA, CPA.
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2. |
2018 |
Incorporation of the Roadmap into the Action Plan of the National Social Economy Concept from the Inter-ministerial Working Group to the MLSP Acceptance of the measures in the Roadmap (as part of the Action Plan) with a decision of the Ministry of Labor and Social Policy. Monitoring of the current legislative changes included as measures in the Road map. Coordination on implementation of Roadmap measures with other interested institutionsIncluding Roadmap measures in sectoral strategic documents.
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3. |
2019 |
Preparation of legislative texts by the interdepartmental working group at the MLSP Public discussion of legislative proposals. Adoption of legislative proposals. Coordination on implementation of Roadmap measures with other interested institutions Include Roadmap measures in sectoral strategy paper
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Objective: |
Improving the capacity of the JU |
Execution status |
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Objectives of the National Concept for Social Economy |
Goal 3: To serve as a basis for creating a favorable administrative and legal environment for the development of social economy enterprises (access to finance, social clauses in public procurement, tax relief, etc.). |
Indicator |
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Result |
• Increasing measurable social or environmental impact (increased numbers of employees, satisfied employees, customers, improved environmental quality) • Growth by economic indicators (Indicators include declared profits, taxes, salaries, social security contributions, duration of activity ...) • Value-added growth (innovations) • Increased financial resource and support for SP (start-ups, donations, capacity development programs) |
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Responsible institution |
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Ministry of Labor and Social Policy |
Assessment |
Preliminary Current |
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Directorate "Living Standard, Demographic Development, Policies and Strategies" |
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Partners |
State institutions |
Council of Ministers Ministry of Finance Ministry of Labor and Social Policy Ministry of Economy Agency for Small and Medium Enterprises Disability Agency Employment Agency |
NGO |
Members of an inter-ministerial working group on Social Economy at the MLSP OP Monitoring Committees Social enterprises and partners NGOs NAMRB |
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National Assembly |
Labor, Social and Demographic Policy Committee Health Commission Committee on European Affairs and Control of European Funds |
Others |
Banking and credit institutions Municipalities |
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Justification and description of the activity |
1. Increase in the amount of support for the start-up of a business by FL or NGOs Programs need to be set up to target specific financial support when starting a business. Similar programs are implemented within the employment programs and employment measures of the Employment Agency but they mainly cover only two vulnerable groups - disabled people and unemployed youths up to 29 years of age. These employment programs need to be flexible and allow annual change of target groups in view of the unemployment rates for each of them.
2. The SP capacity development programs should have separate and sequential programs and in-service, upgrading and ongoing training for: -Building business skills; -Marketing and management; - Good financial management
These programs should be readily available to potential social entrepreneurs or nonprofit organizations that are planning to start a business idea related to achieving their social goals. The financing of such programs could be planned within the already adopted OPHRD and OP "Innovation and Competitiveness".
3. Programs that subsidize for a certain period the employment of vulnerable groups - among the most successful examples that help when starting the activity are precisely the programs that financially encourage employers to take certain groups of work that would not, on other equal terms , because of the heavier social cost they risked (these groups have specific problems that require a longer period or more difficult conditions to overcome). 4. Programs that support social innovation - the development of social innovation is the most successful form of support for the SP; in order to achieve this result, it is necessary to create a separate program to support the "piloting" of different ideas in order to stimulate demand for the best innovations; 5.Obligating access to funds from operational programs - a potential resource is the resources of the Structural Funds, but in order to ensure initial access, it is necessary to ease the rules on access to finance, providing bridge financing, flexibility and adaptability to the specific activity, and etc. 6. Prepare the possibility of flexible financing - separate financing, risk financing, growth growth, easy and low interest loans (to overcome the difference between the interest rate on the bank loan and what the business can afford), securing the state of collateral on loans and credits of the SP and others. |
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Implementation plan and budget |
2017 |
Incorporation of the Roadmap into the Action Plan on the National Concept for Social Economy from the Interdepartmental Working Group to the MLSP Accepting the Roadmap measures (as part of the Action Plan) with an MTF decision |
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159 thousand BGN |
2018 |
Provision of schemes to support social entrepreneurship in the indicative programs of operational programs Discussing opportunities for launching specific funding mechanisms for the SP and available for different legal-organizational forms |
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2019 |
Introducing options for launching specific funding mechanisms for the SP and accessible to different legal organizational forms |
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Goal: |
Implementing the principles of good governance in the state policy towards the SP |
Execution status |
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Objectives of the National Concept for Social Economy |
Goal 2: serve as a current "standard" to help foster the development of the social economy and to encourage performers and supporters to apply and disseminate the spirit of social solidarity |
Indicator |
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• Ensuring a consistent and consistent policy based on real needs, stakeholder involvement, recognition of successful models and solutions • Capacity building of an administrative unit for planning, co-ordination and implementation of SP policies (indicator - number of meetings of a permanent inter-ministerial group on the social economy) |
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Responsible Institution |
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Ministry of Labor and Social Policy |
Assessment |
Preliminary Current |
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Directorate "Living Standard, Demographic Development, Policies and Strategies" |
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Partners |
State Institutions |
Council of Ministers Disability Agency Agency for Small and Medium Enterprises National Council for the Integration of People with Disabilities |
NGO |
Members of an inter-ministerial working group on Social Economy at the MLSP |
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National assambley |
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Others |
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Activity description |
1. Creating a central policy unit for SPP policy-making and monitoring in SP is not appropriate to be part of the functions of a department at a specific MLSP directorate but a separate administrative unit capable of building capacity and to have more opportunities for evaluation, monitoring and preparation of proposals, programs and initiatives; 2. Ensuring the involvement of the SP and civil society organizations in the process of policy making in this area A separate mechanism is needed to allow the involvement of civil society organizations and the JUs involved in the policy-making, monitoring and evaluation process of their implementation to ensure engagement and the task is to ensure transparency and democracy in the process of promoting the development of the JU. A similar role is currently played by the Inter-ministerial Working Group on Social Economy to the MLSP. It is recommended that it continue to function on a permanent mandate by periodically updating its membership with new members from the SP Group, for example with the participation of coalitions such as the Social Affairs Forum in Bulgaria. 3. Periodic assessment of the environment, results and trends in the development of the SP at national level It is necessary to create and use tools for periodic assessment of the environment for development of social entrepreneurship. The assessment will be an analysis of the positive and negative influence factors, the prevailing practices, the observed difficulties and trends in the growth and the impact of the SP's work. In addition to collecting statistical data from official sources and from representative sociological surveys, this analysis should also take place in the context of stakeholder participation (previous paragraph 2). The outcome of the evaluation should be set out in the Social Entrepreneurship Index in Bulgaria to be used in subsequent planning actions to approve the environment. |
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Implementation plan and budget |
2018 |
Preliminary study of functions of units in the administration Preparation of legislative proposals |
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2019 |
Public discussion of legislative proposals Adoption of legislative proposals |
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Question 3
Who are the main providers of entrepreneurial education in your country? List 3 to 10 public, private and non-profit entities actively involved in creating learning contexts for young people.
1. Ministry of Labor and Social Policy
2. Employment Agency - Career Start Program
3. Structural Funds - OP "Innovation and Competitiveness"; OP "Human Resources Development"
4. MINISTRY OF EDUCATION AND SCIENCE
Question 4
What public/private grants are available for young people to launch their start-ups at national/ international level?
(please add links and a short description)
Opportunities to finance the SP3 activity
The available funding mechanisms for the SP, along with the above tax incentives, are:
• Bank loans - extremely difficult, with no special relief for some categories of SP;
• Risk equity financing - available only to traders, primarily small and medium-sized enterprises. NGOs have no access to such funding
• Grant funding for SP development - Similar funding was provided under the OP HRD 2007-2013 and is expected to re-enter the second programming period. In addition, in support of the development of social entrepreneurship in the second programming period, funds are also provided under the Operational Program "Innovation and Competitiveness". The Disability Agency supports projects of specialized enterprises and cooperatives for people with disabilities32
• Collection of pay-as-you-go services-SPs can generally independently pricing. However, given the specifics of the vulnerable groups for which they work, the ability to self-sustain themselves and only the income from economic activity may be limited. As has been made clear above, Bulgaria has freedom of self-determination as an SP and the choice of form it works. At present, regardless of the National Concept and its implementation plan, there is a lack of systematic government policy offering easy and flexible incentives for their development, including for all forms. Rather, private donors and programs develop initiatives that aim at increasing capacity and getting incentives. Entire organizations themselves depend on how and how they qualify as an SP, which casts doubt on the extent to which it is aimed at real and long-term solving a particular social problem and seeking support.
OPHRD data 2007-20141 Two of the OPHRD 2007-2014 schemes were addressed to the SP: "Social Entrepreneurship - Population and Support for Social Enterprises / Pilot Phase" and "New Opportunities". 77 new social economy enterprises have been supported and 87 are operating in the social economy. As of September 30, 2013 under the Program, 3 681 people have started work in the sphere of social economy.
Program for Social Entrepreneurship of the Bulgarian Center for Not-for-Profit Law The program started 4 years ago and is realized with the support of private donors and corporate donors. It is the only program in Bulgaria dedicated entirely to non-profit organizations that want to develop a business idea in support of achieving their non-profit goals, including social ones. Within the annual editions of the Program, an average of about 20 participants are trained in the legal requirements for business development and business planning, and then have expert support in developing their own business plan. Involved NGOs have the opportunity to apply with their business plan in an annual competition where three of the best ideas receive awards. BCNL tracks the progress of the winners in the competition over the next two years as the organization's team is available with additional advice and support when needed. While funding is provided in the form of awards, most of the winners use it either as startup support or to cover costs related to improving and upgrading the realization of the idea. FBB's Rinker's Challenge Program organizes annual competitions for entrepreneurs from 2014 by supporting early-stage ideas with a training program, two-stage funding and mentoring support for existing or newly created teams. The teams themselves choose the legal form in which to implement their ideas. The first 4 teams received start-up funding and work on their 2015 projects
Question 5
What are struggles that youth entrepreneurs from your country face?
The Challenge for Bulgaria
Wide understanding of a social enterprise
In Bulgaria, at this point, there is a broad legal framework, or rather, there is no explicit legal framework, and this allows free self-determination. At the same time, it should be noted that broad criteria for definition offer a real opportunity for a promotional policy that focuses on concrete results.
Need for sectoral reforms
SPs in Bulgaria have been acting and have traditionally developed as a means of securing employment in education, social services and rarely education, healthcare and culture. Therefore, a key factor for their future development are the overarching reforms in these areas, the liberalization of the market and the provision of quick and easy access to consumer services
Prioritize a target group
The only more serious preferences are targeted at one particular group of SPs - cooperatives and specialized enterprises of disabled people who are parexcellencesocial enterprises. The reasons for this are two: a) the target group - the disability with the most systematic and consistent integration policies, active self-advocates, and b) historical causes34. Therefore, in order to use the SP as a tool for overcoming social problems and for other vulnerable groups that are difficult to represent and self-advocate for their own initiatives (such as refugees), it is necessary that the nationality and cross-sectoral planning of policies be developed in order to develop a supportive politics
Capacities to build capacity
There are no adequate and consistent programs financed by public funds to build capacity for social enterprise development as such. Particularly, this is important for the NGO JUs, as although their business activity is recognized par excellence, there is a need to upgrade their entrepreneurial skills and market recognition. The statement of the funds allocated to the JU's development under different national initiatives and mechanisms implies that significant financial resources are allocated, but at the same time the JS supported do not achieve financial sustainability and remain project-oriented. It is on the one hand that the SPs build up their own business environment and become recognizable among society and, on the other hand, to be a successful instrument for achieving the objectives of national social policies.
Opportunities for affordable start-up funding There are no financial incentives for the initial start-up of the SP, investments in small and medium-sized enterprises are significantly more targeted and consistent, including by providing specific financial instruments to help the business develop as such.
Question 6
Name few private companies that support entrepreneurial education through Corporate Social Responsibility programmes, hackatons, accelerators etc.
(Links and a paragraph by company are highly appreciated)
Co-working spaces
Shared office space, where many entrepreneurs and their teams work. In Bulgaria, there are already over 30.
"It creates communities, culture and productive environment for the birth of great products and teams. There we can to unite members of the ecosystem and help them grow," Thibault Tetindzher, founder of Puzl Coworking
Pre-accelerators, incubators
Teaching or supporting young teams of programs within a few months
"Preakseleratorite, accelerators and incubators are protected environment that enables startups to learn from their own mistakes, provide them with mentoring and support. It also involved the middle teaches competition and perseverance," Janet Todorova, kodirektor of Founder Institute Bulgaria
Organizations, foundations
Various initiatives that support and unite people and companies in the ecosystem - the bond
"They fill the needs for education, inspiration and connection of entrepreneurs. 10 years ago, practically such a community existed and Bulgaria had much need for organizations to show how to do business in Bulgaria," Ivaylo Hristov, the "Startup"
Investors, funds, business angels
They can be different types - funds, business angels (ie private individuals). They play an important role in financing companies by taking a share of business, but also advisers and mentors.
"Angel's investor is usually a person with significant business experience and a good network of contacts, with an equity investment in an early start-up phase, with the addition of finance for business development and positioning."
Sasha Bezuhanova, business angel and founder of MOVE.BG
Events
There are small communities where interest is collected, usually in shared offices and large international forums several times a year.
"The role of major events such as DigitalK is the creation of links at an international level, very rarely in Bulgaria come the world's greatness and this is, on the one hand, an opportunity for everyone to meet them, to exchange experience, on the other - these people recognize Bulgaria as an ecosystem where something happens ", Stefan Ganchev, partner Launchub, co-organizer of DigitalK
GEM Bulgaria
Global Entrepreneurial Monitoring (GEM) is the most comprehensive survey of entrepreneurship in the world. The local branch - "GEM Bulgaria" was established in 2014 and explores the entrepreneurial ecosystem and the factors that encourage or hinder entrepreneurship in our country as well as the behavior of current or future entrepreneurs.
Question 7
List 1-5 start-up hubs from your country and what type of services they provide for new entrepreneurs
І. Rinker’s Challenge#4 – challenge for the new entrepreneurs
Rinker Center at the BCause Foundation invites entrepreneurial people with ideas to compete for participation in the training program and to get grants for their business. This edition of the competition will only support business ideas with significant social or environmental impact.
II. BCause Foundation is an expert organization, recognized leader with 20 years experience at national and international level (since 1995). We encourage people, organizations and communities to transform life by developing donation and social investment.
BACB Program Challenge - Entrepreneurs across the country are sending their ideas for "green" and sustainable business. They are struggling to participate in a start-up accelerator and a grant. The best business plan receives a target prize of 20 000 leva.
III. EUROKIT CONSULT EOOD offers:
- Project development and project management consultancy, incl. and the EU OP, technical and financial management of projects;
- Informing about the opportunities for financing the business; Preparation of business plans, strategies and their implementation and adaptation.
IV. EUROKAC CONSULT EOOD has a great experience in working with start-up entrepreneurs, developing entrepreneurial ideas in working and successful business practices.
V. "TERRITORIAL CENTER FOR QUALIFICATION AND PREQUALIFICATION" Ltd. is specialized in:
- Vocational Qualification, Retraining and Key Competencies;
- Professional orientation;
- Career development.
ESC team has a lot of experience in developing and implementing training modules and programs in the field of entrepreneurship and business development of small and medium business.
Question 8
List 5-10 successful startups developed by youth entrepreneurs under 30 years old based on the following structure:
Name of the founder
Industry
Aim of the startup
Products/Services
Link to start-up website (if any)
1. Operational Program "Human Resources Development" 2014-2020,
project "Raising Entrepreneurial Capacity - Road to Active Social Inclusion",
A project for social entrepreneurship includes 400 young people
One of the most affected groups who have difficulties in the labor market is young people born late in the last century. These are people who have difficulty in finding work and learning opportunities. JA Bulgaria's social entrepreneurship project is trying, with the help of partners, to encourage young people aged between 18 and 29 in the four countries most affected by the economic crisis in the EU (Spain, Italy, Bulgaria and Romania) to continue their education and be able to find work or start their own business.
In Bulgaria, the project deals with 400 young people, creating opportunities for training, apprenticeship, support for finding a job or launching entrepreneurship later on.
Part of the professional realization ideas the app is working with are apprenticeships in companies that need workers to acquire professional experience, the new opportunities that social networks offer after the appropriate education, the new niches in the labor market that require new competencies. In this plan, the project is open to employers and businesses from all walks of life.
2. Operational Program "Human Resources Development" 2014-2020,
project "Raising Entrepreneurial Capacity - Road to Active Social Inclusion",
Young people created 6 business start-up models based on the principles of social entrepreneurship
The project "Against youth unemployment through social entrepreneurship" lasts 5 months - from 1 February to 31 May 2018, and has as its main objective the sharing of good practices between young people, experts, representatives of public authorities, businesses and social entrepreneurs to increase knowledge of young people aged 15-24. of the NEETs group that are capable of working independently or in a group to develop the process from idea to a working model of social entrepreneurship.
According to Eurostat data from August 11, 2016, at the level of the 28 EU member states, the level of youths aged 15-24 who fall in the NEETs group is 12%. Taking into account the challenges arising from the migrant crisis, the population of Europe with people from other cultures and nationalities, there is a need for innovative solutions for future cohabitation. Considering the existence of social problems that are beyond the economic sphere and are not overcome by the immanent social functions of entrepreneurship and the market economy.
All participants jointly prepared 6 ideas for starting a business based on the principles of social entrepreneurship.
"The first model we have developed is called" Fly to the Future ". It was formulated with the idea that people from NEETs - the groups find work and learn some competencies that they need in life, and after having already completed a training course made up of the youngsters involved in these groups, they will continue to train their peers and friends who are also in this NEETs group. This will make a permanent cycle in which they will have something to do and find a better job. "
"The second model is" Drink better, drink together ". This is not about drinking alcohol but about learning. The idea is to create a cooperative in the sphere of winemaking, where young people from NEETs groups can start work. They must work in the organization for at least one year, after which they will receive a certificate. The goal of the model is to help small producers "
"The third model is called" We Bake For You ". The idea is to use food from restaurants and shops that they dispose of about a week before expiration and expiration. We decided to use this food by preparing it and selling it to socially disadvantaged people at very low prices, and after a certain amount of time we will give it free of charge. To this end, we will use people from NEETs groups and volunteers who will gain experience in this way. The model is so made that it can be used in every country because there are starving people everywhere, and a very high percentage of discarded food "
"The fourth model is called" Green Bee "and has the idea to help ecotourism in Bulgaria. The way this thing can be realized is by using a house or unusable space that could be repaired and refurbished in a way to become a hub for tourism. This way, people from NEETs will be implemented and able to work and divorce tourists. "
"The Fifth Youth Connection model is related to NEETs groups and refugees. The aim of the model is to involve refugees because there is a large language barrier between us and us, there are many uneducated people - whether Bulgarians or foreigners. The idea is that a smart app can be accessed by any young worker. "
"The sixth model is called" Sustainable Network Generator Incubator ". The idea is to create a network of trainers that will set up courses for NEETs, migrants and people with disabilities. This will help them find a job as the coach's idea to go to them and give them the skills they need. This idea can apply absolutely anywhere. "
Question 9
What are the industries who have the biggest potential to develop? Or the ones that developed in an accelerated way?
The practice in Bulgaria shows three typical model operations of the SP. As the social enterprises sector is still very young, new organizations will emerge, it is important for each model SEA to deviate from other types of activities and to emphasize that all of the above criteria must be effective in the long run in order for the operation to be a social enterprise.
The three models below describe and highlight the criteria that must be used to define the activity as a social enterprise.
- The SP creates jobs for the vulnerable group as a direct employment of such people. The defining characteristic of the enterprise is that it creates employment (supported, sheltered employment etc.). Typically, in other countries there are% of the state that is for the vulnerable group.
- Delimitation from such activities: unlike, for example, occupational therapy or any other social service that creates a person's activity, there is real involvement in the work process, the result of which is offered on the market (economic character).
- The JS provides services and / or goods directly designed to meet the specific needs of a vulnerable group in an entrepreneurial manner37. The particular vulnerable group in this case is a service user. For this purpose, the SP can also be funded with public resources under mechanisms that ensure that competition rules are respected (eg public procurement, social bargaining through public-private partnerships, etc.), recruiting volunteers and / or donations, and / or reduces the cost of your product in another, innovative way.
- Delimit from such activities: what would distinguish the SP in this case from an ordinary company, the requirement that profit be reinvested in the leading social objective.
- SPs produce and provide goods or services against payment on a market principle and generate a profit that they use to achieve or solve a socially significant problem.
- Restriction from such activities: unlike ordinary entrepreneurial activity, in this case the SP should have special activities carried out to meet the criteria for a leading social objective, a ban on profit sharing, management participation and transparency. For example: performs an economic activity by producing and selling a product whose application leads to a lasting energy saving and contributes to solving a socially significant problem
Question 10
Which are the top 3 cities who have an encouraging climate for entrepreneurs? Why?
Sofia, Plovdiv and Varna
Varna, Plovdiv and Sofia are host cities of the Regional Forum of Social Entrepreneurs. The Regional Forum in the three cities enables entrepreneurs to present their activities and discuss opportunities, problems and measures to promote people with disabilities.
Startup Weekend се провежда in the three cities. - The event allows participants to transform their ideas into a real business model and present it to investors. All this happens within 54 hours, and a team of mentors gives advice and guidance to the teams.
Question 11
List 3-5 projects/programmes initiated by non-profit organisations with the topic: social entrepreneurship and entrepreneurial education.
The ChangeMakers - The engines of change
A program of MOVE.BG, which identifies, links and unifies changing Bulgaria into a national network. The aim of the program is to show 1,000 people of change in our country and to unite them for common action. Within the program, we present the good examples that infect with inspiration. We are focusing on global trends in the local context. We work for the dissemination of knowledge and realization of projects all over the country, positively changing the local environment. To create together our tomorrow!
* Social shop in Varna for products manufactured by people with disabilities from Trudovo - production co-operative "Rodina", as well as handmade souvenirs from blind people
* Prisons are special communities of people who can work - to produce or to undertake communal activities
* Graham Bank, Bangladesh - Promoting Social Entrepreneurship in Action
* Blue economy: 10 years - 100 innovations - 100 million jobs. An alternative to green economy by Gunther Pauli - a new business model for 10 years - 100 innovations - 100 million jobs based on knowledge-based and local-based solutions
* ESF-funded social entrepreneurship projects
* The Bulgarian Food Bank collects, receives, inventory, stores and distributes donated food to people in need who are chronically hungry or temporarily have no means to eat
* Campaign "Stop the isolation of the various children!" Of the youth club "I MOGA" for children and youths with intellectual and physical disabilities, supported by the Integrated Education Foundation
* Network of bakery houses as a model for social entrepreneurship
* Bee honey from the Samaritans Association - one of the first social enterprises in Bulgaria
* Blagoveshtenie monastery near Kyustendil is built and it is supported by agriculture.
* Public Laundry "Green" at the Complex for Mental Health Services in the Community, Sofia, Slatina Region.
* Church in the ideal center of Sofia gives parking for rent:
* Occupational therapy for drug addicts through the manufacture and restoration of antique furniture
* Soap workshop "HOPe SOAP" - soaps made by disadvantaged young people