Julianna Kiss
Eötvös Loránd University (ELTE) Faculty of Social Sciences, Institute of Social Studies, Department of Social Policy
Julianna Kiss has MAs from English language and literature, communication studies and sociology. She is currently completing her PhD in social policy at ELTE and is working for the Autonomia Foundation, an NGO focusing on strengthening civil society and supporting excluded groups, mostly in the field of Roma integration. She has conducted researches in the field of social inclusion, Roma integration and corporate social responsibility. As of right now, her main research focus is social enterprises and the nonprofit sector. E-mail address: kissjuli@gmail.com
Keywords: sustainability, nonprofit sector, change, funding, Hungary. Social entrepreneurship is becoming more and more widespread across the world, and the role of such initiatives has been growing in Europe - and to a... [ view full abstract ]
Keywords: sustainability, nonprofit sector, change, funding, Hungary.
Social entrepreneurship is becoming more and more widespread across the world, and the role of such initiatives has been growing in Europe - and to a certain extent in Central and Eastern Europe as well. In Hungary however, the topic can still be regarded as under-researched, and the concept of social enterprises is not yet well-known to social policy makers and other relevant stakeholders (e.g. business sector or NGOs).
Similarly to other European countries, the phenomenon can primarily be linked to the nonprofit sector in Hungary. The economic situation of nonprofit organizations has for a long time been characterized by excessive dependence on state and EU resources and the decreasing size of such resources; the lack of local, corporate and individual donors; and the small number of other possible resources (e.g. CEETRUST, OSI, NGO Fund of the EEA / Norway Grants, Swiss-Hungarian NGO Fund); making the operation of the majority of Hungarian NGOs quite vulnerable (See Tóth et al. 2011: 16).
Recently, the situation of the nonprofit sector seems to have reached a kind of critical turning point: a number of social, economic and political factors have affected NGOs in a negative way. The last two years saw a decrease in all dimensions of sustainability (legal environment, organizational capacity, financial viability, advocacy, service provision, infrastructure, public image). (See USAID 2013: 88) In 2012 for the first time, three important indicators of the size, the economic and social weight of the sector (number of employees, number of organizations, and real value income) showed lower levels than in previous years. The decrease continued in 2013 as well.
Due to the financial problems and the vulnerability described, more and more organizations seek to diversify their resources to ensure the sustainability of their operation. Still, the model of social enterprises in civil society circles is not widespread yet. Social enterprises and similar initiatives so far have been mainly funded by programs particularly aiming at social cooperatives and the social economy (e.g. through programs by the EU Structural Funds). Besides state and EU funding, certain independent actors have also been working in the field of social enterprises for years now (e.g. NESsT, Ashoka, etc.).
However, the support of the social economy and social enterprises is expected to play an increasingly important role in the future, especially as part of the Europe 2020 strategy. Due to this increasing role as well as the recent changes described, it can be useful to examine the situation of the nonprofit sector and social enterprises, providing valuable lessons for future initiatives. The objective of the Phd research therefore is the analysis of the previous and current situation, role and opportunities of social enterprises in Hungary, primarily in the nonprofit sector. The research thus aims at (1) clarifying the concept of social enterprise in Hungary; (2) examining the past and present situation, and - primarily but not exclusively - the sustainability of the Hungarian nonprofit sector; and (3) analyzing the past and present role of social enterprises in the changing nonprofit environment.
The research will combine the use of qualitative and quantitative methods:(1) document analysis of relevant literature, e.g. previous research, legislative and policy documents; (2) secondary analysis of existing databases regarding the situation of the nonprofit sector and social enterprises, e.g. the databases of the Central Statistical Office and previous grant programs; (3) semi-structured interviews with experts in the field of social entrepreneurship and leaders of social enterprises; and (4) case studies of different types of social enterprises ("typical examples").
Concerning the expected findings, the research focuses on the changing situation of the nonprofit sector, and especially the role social enterprises can have in its sustainability. Understanding the advantages and disadvantages, opportunities and threats of social enterprises in the previous and current Hungarian context can possibly have a practical impact on state and EU funding policy and might advance the introduction of more efficient programs.
References:
Tóth Laura et al. (2011): A társadalmi vállalkozások helyzete Magyarországon. Budapest: NESsT EUROPE Nonprofit Kft.
United States Agency for International Development, Bureau for Europe and Eurasia, Office of Democracy, Governance and Social Transition (USAID) (2014): 2013 CSO Sustainability Index for Central and Eastern Europe and Eurasia.
