Business and NGOs Constortium for Communities Well-Being through Social Entrepreneurship Development: Business and NGOs Constortium for Communities Well-Being through Social Entrepreneurship Development
Lviv, Donetsk, Luhansk obalst, AR Crimea, Ukraine Lviv, Donetsk, Luhansk obalst, AR Crimea
Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.
East Europe Foundation convened a consortium of cross-sector stakeholders (e.g., business, NGOs and experts) to promote social entrepreneurship in Ukraine. The consortium partners have worked since 2011 to provide social entrepreneurs with better business skills and access to finance (low-interest loans). Being tested in economically depressed communities, the proposed model only in 2013 helped create 27 jobs.
Problem: What problem is this project trying to address?
The idea is to help solve social problems faced by society by means of the development of social enterprises as part of SMEs.
Ukraine has an unfavourable environment for business development (Ukraine was ranked 112/189 in WB’s 2013 Doing Business Index). The national government has no understanding of SMEs’ crucial role in the economic development. From the other hand charitable foundations and NGOs have very limited resources of funding and also do not receive support from the government. The idea of the project is to teach people how to run a social enterprise as a usual business which will simultaneously help to generate funding for the needs of charitable organizations.
Solution: What is the proposed solution? Please be specific!
Business and NGOs united efforts and resources to create favorable environment for the social enterprise sector development, as well as to spread this effective model throughout Ukrainian regions. We provide those who want to run a social enterprise with legal, financial and consulting support. We established special fund to provide people with easy no-interest loans, created new jobs and raise awareness about the issue. Business contributed not only money but practical advices and expertise on taxes, management, etc. Business participated in a program design and implementation from the beginning.
Impact: How does it Work
Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.
East Europe Foundation has provided support for start-ups and for existing social enterprises. Lviv civil society organization “Narodna dopomoha” has been assisting people in need for a couple of years now. To be self-sustaining, the organization created a social enterprise – the bakery “Horikhovyi dim”.One of the projects financed through bakery’s revenues is the Centre of Assistance to Women in Crisis. The centre helps those who have become homeless, lost their papers or found themselves in a difficult situation. EEF provided funding to create new workplace and equipment, assist in the training for staff, and helped to conduct infocampaign. However, organization is actively fundraising and receives money from bakery's profit
Spread Strategies: Moving forward, what are the main strategies for scaling impact?
EEF’s project helped establish the preconditions for the development of the social business sector in Ukraine. The resulting practice and emerging business sector develops social inclusion and reduces poverty through greater income generating opportunities for Ukraine’s most vulnerable people. In response to the unique environment, the project also paid particular attention to defining social entrepreneurship amongst a broad group of stakeholders and establishing quality standards and transparency within the stakeholder institutions. The project continues to spread no new regions of the country. In 2014 we plan to coover three more towns
Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?
there are no competitors in this field in Ukraine
Special steering commitee who oversees the project implementation including leading experts, representatives of business and civil society organizations. East Europe Foundation President is a leading force who attracts new partners, initiates meetings to share the successes and solve problems together with the staff from corporations, who are responsible for the social investments and companies CSR activities (middle-level management).