CEECN – 3rd International Training Seminar
13 – 16 September 2004
Bankia, Sofia, Bulgaria
Seminar aims
Social enterprises and their role in local economic development
Trainers/facilitators
Mark Irvine and John Henderson Todd (Scotland)
Participants
Drasen Beslic (Croatia), Srdjan Frganja and Igor Cocic (Bosnia), Igor Kokarev
(Russia), Tamara Malachowska and Barbara Szczerbinska (Poland) Georgi
Meskhidze (Georgia), RubinaTer-Martirosyan (Armenia), Viatcheslav
Tcheerniavski and Leanid Kalitsenia (Belarus), Miglena Mihailova , Sylvia
Filipova and Assen Slachev (Bulgaria) Andrea Rechiteanu, Dan Bumbu and Ion
Ene (Romania) Miroslav Stelcl, Miriam Cesnekova and Lucia Gembicka
(Slovakia)
Format
The format of the seminar was a mixture of short presentations on specific topics
- followed by small group work and reporting back to wider discussions involving
all group members.
1st session (Day 1)
Day 1 began with an icebreaker (getting to know people) session - short pairedinterviews with each member (including the trainers) being introduced to the rest
of the participants by her or his partner.
2nd session
In the next session, members explained their background, interests and current
areas of work. All members were actively involved in tackling social exclusion
(disadvantage, poverty and discrimination) through training and capacity building
programmes – working with poor communities, especially young people and
minority groups.
The session also considered how a social enterprise could help achieve the aims
of members in their national countries and improve the effectiveness of their own
organisations. Members went on to explain what they hoped to achieve from the
seminar, as follows:
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A clear definition of a social enterprise
Understanding the role and purpose of a social enterprise
How to compete for successfully for funding – in a competitive market
How to establish a social enterprise – a step by step process
Different models and structures that might apply – a flexible model
Sharing and learning from the experience of CEECN members in other
countries – in an ongoing basis
3rd session (Day 1)
The afternoon session began with a presentation on the key characteristics of a
social enterprise:
 What is a social enterprise?
 A social enterprise is defined by what it does and how it operates – there
is no rigid text book definition
 A social enterprise delivers a social benefit – not private profit
 A social enterprise is a business – but any surplus must be reinvested and
benefit the wider community or specific target groups
 A social enterprise can receive financial support and tax incentives – from
local and central government
 Social enterprises are owned or controlled by the community or specific
groups within the community
 The shape and size of a community – is flexible and will vary according to
local circumstances in different countries
The session considered some examples from Scotland:
 SENSCOT – a network of individuals in Scotland operating in the ‘social
economy’ – web site based with register of consultants and supporters –
provides an forum for exchanging ideas and information – as well as
influencing local and national government policy towards the 3 rd sector
 The Appin Community Trust – a community cooperative set up to own and
manage a village shop/post office under threat of closure and to provide a
range of local services including home delivery to the elderly/infirm. The
enterprise is owned by the villagers as shareholders in a friendly society
with profits transferred to a Community Trust to be used for local “good
causes”.
 Social enterprises and childcare – wide range of small organisations in
Scotland providing nursery care for under-fives – schemes help parents
with young children return to work – through re-training and up grading
their skills - gradually became service providers after negotiating contracts
to provide childcare services with local and central government.
4th session (Day 1)
The final session on day 1 considered a long term-funding strategy – as a way of
social enterprises becoming sustainable and reducing their reliance on shortterm grants. The session explained and discussed the following topics
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Core funding – often an initial 3 or 4 year grant
Project funding – additional funding for specific topics
Income generation – charging for services (where circumstances allow)
Partnerships with the business sector – increasingly important
Achieving long-term financial stability – by combining funding sources
5th session (Day 2)
Day 2 began with small groups considering how to create a social enterprise by
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Describing the underlying social benefit
The role and objectives of the social enterprise
The key target group or groups within the community
Identifying priorities and activities to meet the agreed objectives
Organisation, management and control of the enterprise – how does the
social side operate – how does the community exert its influence?
In the report back session a number of possible areas of activity were identified:
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Wine Coop
Cyber Café
Vocational training
Support for learning
Clothing coop
Laundry coop
Food coop
Service exchange
6th session (Day 2)
The afternoon session looked in detail at the need for community engagement
and participation:
 Why is community support important?
 Because it adds value – and satisfies test of wider social benefit
 Potential funding bodies increasingly demand a bottom up approach
 EU, World Bank, UN and US aid organisations – require evidence of
community support before committing public funds
 Private partners also view community support as crucial
 Hand up - not a hand out – now regarded by all potential funding bodies
(public, private and NGO) as only way to ensure long-term sustainability
7th session (Day 2)
The afternoon session opened with an explanation of a new EU regulation on
rural development (see EU web link for further details)
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An new environment fund – with European, national and local structures
Supported by a budget of 100 billion EUROS between 2007-2013
Shifting money into diversifying the rural economy
Shifting money away from traditional agricultural production
Underpinned by LEADER – a well developed ‘bottom up’ EU model of
community based partnership working
8th Session Day 2)
The afternoon session concentrated on partnership working and how to develop
complex partnerships via local economic development plans. Key topics were:
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Stages in the planning process
Carrying out a community audit
Finding partners and potential funding organisations
Identifying needs and specific programmes of activity
Assessing, reviewing and reporting on local performance
A short presentation was given on a local development plan in Scotland –
‘Initiative at the Edge’ a community plan based on 8 rural areas with multiple
problems and challenges to overcome: poor housing, an ageing population,
young moving away to the cities, environmental concerns, a decline in traditional
farming, inadequate transport facilities and a lack of access to public services. In
small groups the participants looked at:
 How to involves the state – local and national government
 How to deal with and resolve conflict – within the partnership
 How to convince public, private and NGO partners to lend support
In the report back, there was not 100% agreement on the need for partnership
working and community support – some participants questioned the feasibility of
a partnership approach in their own countries – though the benefits and need for
a new approach was emphasised by the trainers.
9th Session (Day 3)
The final practical session looked again at the benefits of a social enterprise – in
the light of debate and discussion over the previous 2 days. The key features and
characteristics of a social enterprise were agreed as follows:
 Clear social benefit
 Community engagement, participation and control
 Partnership working across the public, private and NGO sectors
Members then apply these principles to a practical idea or project working on an
individual basis or in small groups with the two trainers (Mark and John) - testing
their plans and proposals against the following business planning model
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Benefits of a business plan?
Business vision and purpose
Detailed objectives
Community benefit
Market analysis
Funding strategy
Bottom up approach
Croatia – Cyber café to encourage acquisition of IT skills
Bosnia – Internet training and education targeted on the young unemployed
Bulgaria – Centre to promote cultural identity and traditions of the Roma minority
Slovakia – Childcare and training centre aimed at women returning to work
Belarus – Postal delivery service in local areas as a means of improving
communications infrastructure using unemployed youths.
Romania – Wine cooperative producing high quality wines from local small
farmers grape production and marketing via international wine clubs
Poland – Children’s clothing production using redundant textile workers and mill
premises in village
Armenia – Similar to Belarus but linking in to transportation system to cover
long- range deliveries
Georgia – As per Armenia
Russia – no report as Igor Kokarev had to leave early
10th session (Day 3)
Evaluation and feedback – there were mixed comments with some delegates
wanting more case studies and others more small group discussion of specific
projects and concepts. This reflected the diverse interests of the delegates and
their differing levels of experience. The unanimous reaction was that the
sessions had been worthwhile and of practical use in furthering projects in their
own countries.
Useful web links and contacts:
Senscot: www.senscot.net
Scottish Executive: www.scotland.gov.uk
European Union: www.europa.eu.int
Communities Scotland (regeneration agency): www.communitiesscotland.gov.uk
SCVO (Scottish Council for Voluntary Organisations: www.scvo.org.uk
New Lanark (Community Trust): www.newlanark.org.uk
Mark Irvine: markirvin@compuserve.com
John Henderson Todd: toodshaw@msn.com
Mark Irvine/John Henderson Todd
September 2004