PERSPECTIVES AND CHALANGES IN FUNDING SOCIAL ECONOMY IN EUROPEAN UNION

Abstract

Increasing is the role of social enterprises in the future development of EU economics. The social economy has different traditions in Member States. The future for social entrepreneurship is to solve problems of society. Many European citizens are excluded from the benefits of economic and social progress. Due to inequalities and risk of social exclusion, people with disabilities need to be re- integrated in the labour market via non-standard forms of employment, including self-employment and temporary contracts. Social entrepreneurship offers opportunities to young professionals. Market access for social enterprises is still restricted. EU at country level can influence the private and social mission entities to incorporate business practices with positive societal impact, improve access to markets and enhance the visibility of social enterprises. EU needs to further develop funds and instruments to support microfinance. Suitable financial instruments and intermediaries should support social enterprises throughout their lifecycle. Access to finance for social entrepreneurship development should be improved. Small and early stage social enterprises need enhanced support, a loan scheme for scaling social enterprises and community-based organisations with limited revenue potential. Thus, social entrepreneurship could revive the social economy through legal frameworks, access to finance, business start-up and development support.