The European Commission has published, on 25 October 2011, a provisional version of its communication "Social    Business    Initiative - Creating a favourable climate for social enterprises, key stakeholders in the social economy and innovation".

Are defined as social enterprises undertakings with the following characteristics:
- "those for which the social or societal objective of the common good is the reason for the commercial activity, often in the form of a high level of social innovation,
- those where profits are mainly reinvested with a view to achieving this social objective, and where the method of organisation or ownership system reflects their mission, using democratic or participatory principles or focusing on social justice."

In addition are included:
- "businesses providing social services and/or goods and services to vulnerable persons (access to housing, health care, assistance for elderly or disabled persons, inclusion of vulnerable groups, child care, access to employment and training, dependency management, etc.); and/or
- businesses with a method of production of goods or services with a social objective (social  and professional integration via access to employment for people disadvantaged in    Society; particular by insufficient qualifications or social or professional problems leading to exclusion and marginalisation) but whose activity may be outside the realm of the provision of social goods and services".

The European Commission plans to promote social entrepreneurship through 11 main actions (a part of which have already been launched):
1. a proposal for an European regulatory framework for social investment funds before the end of 2011 to facilitate access to the financial markets for social enterprises;

2. the continuation of the Progress Microfinance Facility and improvement of analysis, promotion and development of the legal and institutional environment for micro-credits;

3. a proposal for a 90million euro European financial instrument be set up to facilitate access to funding;

4. prioritization of investment in 'social enterprises' in the ERDF and ESF regulations from 2014

5. the identification of best practices and replicable models;

6. the creation of a public database of labels and certifications applicable to social enterprises in Europe to improve visibility and comparison;

7. the promotion of mutual learning and capacity building of national and regional administrations;

8. the creation of a single, multilingual electronic data and exchange platform;

9. the promotion and increase of accessibility of Community programmes in support of social entrepreneurs;

10. a proposal for simplification of the regulation on the Statute for a European Cooperative Society;

11. a proposal for a regulation for a European foundation statute;

12. a study on the situation of mutual societies in all Member States;

13. enhancing the element of quality in awarding contracts in the context of the reform of public procurement especially in the case of social and health services, and to study ways in which the working conditions of persons involved in production of goods and services under the contract could be taken into account;

14. simplification of the implementation of rules concerning State aid to social and local services.

Moreover, the Commission envisages to set up a multi-stakeholder working group on 'social business' to monitor the realization of the proposed actions. Invited will be representatives of member states, social enterprises/social economy, local authorities, banking and finance institutions and the academic world.

Together with the communication, the European Commission published a staff working paper which provides an overview of initiatives taken by the EU, OECD, ILO and ITC with regard to social entrepreneurship.

Download both documents below or find more information on the website of the European Commission: http://ec.europa.eu/internal_market/social_busi ness/index_en.htm

Source: REVES Newsletter, Autumn 2011