Municipal Social Enterprise SLOVAKIA Situation in Slovakia Early
- Slides: 10
Municipal Social Enterprise SLOVAKIA
Situation in Slovakia • Early stage of social entrepreneurship sector • Fragile financial situation in the NGO sector • 2 927 municipalities • „Top-down“ rather than „bottom-up“ approach • Rural population • High level of long-term unemployment • Large socio-economic inequalities among individual regions (in sense of human/social capital, NGOs or business entities presence) • Local municipality – highly trusted institution
Emergence of MSE reflected the situation in the country.
MSE • Alternative to unstable/missing NGO sector • Part of social entrepreneurship package • Entrepreneurial activities not on behalf of municipality (100% own entity) • Variety of legal forms (MSE ≠ legal form) • Enrooted in „National Employment Strategy“ and „Roma Integration Strategy“
MSE Strengths Weaknesses • Complementarity with the local development plans • Gap in the local market • Stability of MSE as WISEs (comparable only with the sheltered workshops) • Role of business incubator • Connection with the social inclusion of people from MRC • ALMP subsidized job ≠ MSE • Possible risk of discrimination in favour of MSE in local contracts, risk of market manipulation
MSE – governing structure • Entity fully owned by municipality • Highest (executive) body – members of local council (members elected every four years) • Statutory body – mayor • Managerial roles – specialised personnel (employed of hired) • Participation of stakeholders (local inhabitants) – ensured by virtue of elected local council members
Legislation • Act on Employment Service • Act of Lagging Regions • Separate complex legislation under preparation
Size of the sector • No precise data • Register under Act of employment services – 9 organisations (78 with the closure decision) – entirely inaccurate information • Business Register – 43 companies with the term „municipal enterprise“ and 9 companies with the term „service enterprise“ – no information about their social purpose
Questions • Criteria upon which the provision of investment support to MSEs in the form of premises, land or basic technological equipment, salaries is decided • Independency of MSEs from local government authorities (Is it possible to substitute participation in social enterprises for participation in elections? ) • Sustainability without public funding • Risk of competition rules violation, in the long run • New legislation (in sense of encouragement of a more independent sector, types of support, narrow interpretation etc. ) • Support through the legislation of the lagging regions • Governmental support for SE that comes from the ground, previous experience with similar initiatives • Monitoring of the MSE`s results (employees trajectories) • Possibilities to limit the application of the model according to the size of the municipalities (e. g. by the number of inhabitants or the number of elected representatives) or by their characteristics (e. g. GDP per capita)
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