Understanding Concepts and Context of the Social Enterprise Debate in Germany

The German social enterprise debate is a relatively young one, but the German National Government (Bundesregierung) recently created a national discussion platform and access to some publically aided financing. At the same... [ view full abstract ]

The German social enterprise debate is a relatively young one, but the German National Government (Bundesregierung) recently created a national discussion platform and access to some publically aided financing. At the same time there is some hesitance in the well-developed German social welfare system to the idea of more social entrepreneurship (e.g. Dt. Verein/ MAIS in NRW 2012). This is not only true in regard to work integration, but also for other social welfare services.
Until recently only few German researchers participated actively in the international discourse on social economy/social enterprise subjects. The paper presents a first interdisciplinary attempt by a group of German researchers usually working on differing thematic interests to draw an outline of the landscape for social enterprises in Germany as conceptualized by EMES and the European Community definition. It was developed within the framework of the the “International Comparative Social Enterprise Models” (ICSEM) project. Four of the five authors have not cooperated before, yet their individual research interests have for some time centered on concepts and organizational aspects of major importance for the social economy in Germany and beyond. Based on their research in the solidarity/alternative economy, the self-help/cooperative sector, societal entrepreneurship, the energy coop movement and social innovation, they worked together over the course of nearly 18 months in an attempt to agree on the most salient aspects of the historic and current German debate.
The paper subsequently brings perspicuity into the blur which still exists in literature in regard to terminology, concepts, characteristics and practice of social enterprises in Germany. By drawing on past (historic-dynamic approach (Weber)) and recent research (Mercator, TEPSIE and other field based studies), it clarifies categorizations and outlines the size of the phenomenon. It also introduces the reader into the institutionalization of social service provision in Germany, shedding light on: The research and academic debate concerning ‘social economy’, ‘social enterprise’ and ‘social entrepreneurship’ in Germany; the prevailing legal and political framework conditions and the interest of public authorities and their underlying concepts; financing options; and the oligopoly structures in most “quasi-markets” for social services; recent changes in the competitive situation; and finally, other terms or concepts in use to designate phenomena close to ‘Social Enterprise’.
All in all the paper follows the ICSEM/SOCENT outline for comparative research. It was developed from two papers presented at the ICSEM Symposium in La-Roche-en Ardenne, one by Birkhölzer and one by Göler von Ravensburg/Glänzel/Lautermann. Both were reviewed by Marthe Nyssens, who strongly suggested merging them into one country paper. Her comments were the starting point for a thorough re-working in the course of the following three months. The integration into a common paper presents a major step on the way to international comparability.
The paper draws on extended literature (see selection below), own research as well as that of other experts.