Download LABEL – A European social enterprise "label" would increase

European Economic and Social Committee
The President
President Staffan Nilsson
TEDx Utrecht University
17 April 2012
Social business – the DNA for a new EU economic order
Dear organisers and guests,
Some of you may wonder why the President of a European institution has come
here today. Others might be afraid that I will talk in European jargon that no
one understands… These people may have a point!!
Nevertheless, I agreed to come and perform this task. I am personally curious
about every new creative and innovative thought.
I am a farmer, and I come from a pretty isolated part of Europe, in the middle of
Sweden. I also believe that the European institutions need to reach out to more
of an unusual audience, not just the usual suspects in Brussels! …
Engaging people for a sustainable Europe. This is the title of my programme
during my Presidency of the European Economic and Social Committee. It is
more than just a title. It is also my deep conviction, my belief, and what I want
Europe to become: a place where every citizen is actively involved in making a
better world for the next generation, for your children, for my grand children.
Today, you invite me to be engaged myself in this conference. I do it, with
pleasure.
European Economic and Social Committee
The President
Today, and with this speech, I will try to explain who is interested in social
business in Europe, what it is, why we need to develop it and how we can do so.
I will forgive you if you forget everything I have said. But please keep in mind
these 3 main messages:
 social business can be a solution for economic growth AND social
development;
 social business can become DNA for tomorrow's Europe;
 social business can help people to engage in building a sustainable
Europe.
What is the situation?
We are facing challenging times. The economic crisis has hit millions of families,
unemployment is on the high, the environmental issues makes the picture even
bleaker, population is ageing and we lack a sustainable pensions and care
system.
I strongly believe that the difficult times we are living through can bring
opportunities to create a new future. When the roof of my farm broke, I had to
repair it and I did, even though it was tough to get through. I had no other
choice.
 If we firmly believe that growth and social well-being must be the
heart of our policy,
 if we really want to tackle economic, financial and environmental
challenges,
 if we want to live in a society where everybody can find their place,
Then we must commit ourselves to invent a new and better world.
Many of you may be unfamiliar with my organisation. The European Economic
and Social Committee was established in 1957 as a forum to discuss issues
regarding the single market. The EESC gives Europe's interest groups a formal
say on EU legislative proposals. We are "your employer", "your trade union", "the
association protecting your rights as a consumer", or "providing the social service
you need".
European Economic and Social Committee
The President
The EESC is the only consultative body at European Union level that delivers to
the European Institutions the points of view of the people based "on the ground"
those most directly affected by EU legislation, those who live Europe on a daily
basis.
The EESC has been working for a long time to reconcile economic development
and social cohesion.
Look around you! European leaders want to restore hope and trust in the
economy. They are drawing up strategies to deliver growth, employment and
competitiveness.
European decision-makers – you have heard of Barroso, Van Rompuy –are now
realising that we can develop new formulas that are currently underdeveloped to
find a new balance between responsible budgets AND growth and job creation in
Europe.
And it is not only the EU decision-makers who are aware of that – it is also clear
in the Member States.
I would like to point out: Social business as one thing that can get the economy
back on track!
What is social business?
Although there is no official definition of a social enterprise, it can be said that it
is "a business that addresses social issues and creates positive change in its
community" It is also good to keep this definition as broad as possible, to keep
flexibility and to allow creativity in this economic field …
What is certain is that social business is a positive step because social
enterprises seek to serve the community’s interest rather than make maximum
profit.
Social business and economic growth can work together!
As in a human body, social enterprise can be seen as the DNA for the new
economy that we want to set up. We must create companies whose main focus
will be, for instance, on healthcare for the elderly, providing assistance to
homeless or helping people with disabilities pursue a career.
European Economic and Social Committee
The President
I therefore firmly believe that social enterprise can be a key element in engaging
people in a more sustainable Europe.
Following the daily news, it is easy to get the impression that the European
economy is dominated by multinational enterprises and stock exchange.
What usually fails to be conveyed is that more than 99% of all European
businesses are very diverse forms, and they are in fact, SMEs.
There are individuals willing to take risks: they set up a business and do it
successfully. These businesses reconcile economic responsibility with taking care
of one another (what we sometimes call solidarity).
Europe’s small and medium-sized enterprises are the driving force for European
sustainable economic recovery.
New times create new needs – and new needs call for new solutions. The key
growth sectors of the 21st century economy will be health, education and care,
accounting for around 20 to 30% of GDP in Europe. These are issues that are
strongly shaped by public policy and require models of innovation very different
from those that worked well for cars, micro-processors or biotechnology.
People want to get more involved in responding to society's needs. Social
business can provide the solution!
A social entrepreneur is indeed often motivated by the fact that he wants to
remedy a social problem, to help those in society who are somehow at a
disadvantage and to make a positive difference. Those entrepreneurs are
creating innovative solutions, delivering extraordinary results, improving the
condition of people by creating jobs that cannot be relocated.
Each entrepreneurial action with a social concern is like a stone that paves the
way for a better and sustainable future!
When it comes to social business, my impression is that on the one hand, there
is business, enterprise, profit-seeking and markets, and
on the other hand
there is "doing good", charity and society.
European Economic and Social Committee
The President
These two concepts have so often been seen as fundamentally different,
conflicting and opposed. But they are not!
These concepts complement each other and both create long term growth.
Social business is
reconciliation between social Europe and a competitive
Europe! Social business is a pillar for a sustainable Europe!
Dear participants,
How can we create the right environment for social businesses to develop in
Europe?
Let me use the term "Social Silicon Valleys" to describe possible future places
and institutions that will put resources and energy into businesses which reply
to social problems.
We have to set up the best environment for social leaders, companies and
institutions to cooperate. They need to learn from each other in order to launch
large-scale initiatives focussing on public interest objectives.
Let us stimulate each idea, support each creative project, keeping in mind those
ironic words from Mark Twain:"They didn't know that it was impossible so they
did it!".
The US created Facebook and Google. We, in Europe, can create the best social
business knowledge and development. Let's give social entrepreneurs the tools to
succeed!
This is likely to require major changes amongst governments, foundations, civic
organisations and businesses. It cannot be done overnight.
We are working in full cooperation with the European Commission to propose
clear measures to create the right environment for social businesses. The
measures we propose are normally tested on the ground, as we do have social
businesses represented in the Committee, entrepreneurs and social agents who
have the right pulse of what works and what doesn't work on the ground.
European Economic and Social Committee
The President
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REGULATION - We need a better and more legal framework for social
enterprise to develop and grow. We must, for instance, simplify the European
cooperative regulation, propose a statute for the European foundation or
improve the situation of mutual society activities.
EDUCATION - We need to educate and support the next generation of social
entrepreneurs. Social business studies should be reinforced in schools and
universities. Social entrepreneurs need to build the necessary skills to secure
that their business is well managed and can grow;
DEDICATED PROGRAMMES - Social enterprises need access to dedicated
support programmes for development. Initiatives involving "hubs" that
provide business support, work places and mentoring have proven effective
during the start-up phase. Pay particular attention and develop investment
readiness programmes.
LABEL – A European social enterprise "label" would increase awareness,
recognition and secure high quality standards. Social enterprise must
actually be considered as a vital sector in society.
Do you remember the song of the famous Swedish band ABBA? …"Money money
money".
It is a reality: an enterprise cannot function without financial support! Better
access to capital for both start-up and growth is a priority for social enterprises
as well.
This is my last and fifth recommendation and perhaps the most important:
We need to focus energy on promoting access to finance for social businesses!
Microcredit and loan instruments have for instance been a key factor in social
entrepreneurs developing their activities. Many banks have launched dedicated
programmes and specific support for them. I am thinking particularly of good
examples in Europe such as Big Society in the UK, Triodos in Belgium or Crédit
Coopératif in France, to name but a few.
However, we are all aware that there has been a major financial crisis and it has
affected capital flows, especially to SMEs. Social enterprises have been caught
up in that liquidity problem too.
European Economic and Social Committee
The President
I am of the opinion that special tailored forms of hybrid capital containing
elements of grants, equity and debt capital have to be brought onto the market.
Investment funds can therefore, in certain conditions, help fill the financial gap
faced by social businesses when trying to expand.
Imagine a world where your broker recommends stocks empowering people with
disabilities or purchasing a bond where you can earn a financial return while you
support the education of Europe's underprivileged young people!
Thank you for your attention.
___________________
For further details:
Coralia Catana | EESC President's Spokesperson | +32 (0)25469963 | +32
(0)498984613
E-mail: [email protected] | [email protected]
Internet: http://www.eesc.europa.eu/?i=portal.en.staffan-nilsson-speeches