In Hungary, no database or recent representative study is available on social enterprises, existing literature for most part analyses statistics related to the non-profit or third sector (to specific legal forms, but not social enterprises in particular), discusses qualitative case studies or is based on a small sample quantitative research (see e.g. Petheő 2009, Tóth et al 2011, Etchart et al 2014,G. Fekete et al 2014). There is also no single definition, consensus on acceptable legal forms, uniform regulation, long-term startegy and stable policy environment regarding SE, therefore drafting a typology for social enterprises is a difficult task.
However, based on collecting available literature, analyzing 30 questionnaires as part of the ICSEM project as well as looking at the findings of the research project entitled “Solidarity and social economy of post-socialist peripheries” supported by the Hungarian National Research, Development and Innovation Office (contract number K112928), the Hungarian research team of the ICSEM project has proposed the following six SE models.
Public service provision social enterprises are organizations, which provide services that were formerly state or municipal responsibilities. Therefore they receive public support on a normative basis, but they also finance their operation from market income. Characteristic examples are non-profit organizations that employ people with changed working abilities financed via normative state support and conduct trading activities at the same time, as well as foundations that operate family day-care centers or old people’s homes.
Enterprising CSOs are classic civil society organizations (mainly foundations and associations) having social, cultural and environmental aims, which in order to sustain the organization and reach their social goals, recently have gotten more and more engaged in economic activities. With their business activity they aim to complement private donations and grant based public funding.
Work integration CSOs are often non-profit legal entities characterized by a bottom-up approach - however, the „working integration” name is not used in Hungary. Part of them aim at direct employment of the target groups, others facilitate income generation and self-sufficiency (e.g. gardening, farming, sewing, etc).
Local development community enterprises are implementing local economy development programs in an integrated, multi-functional way, usually with the direct or indirect involvement of local governments. In the centre of activities there is some kind of a local product or an activity serving the operation or development of the village/town. They mostly operate in rural areas lacking small- and medium enterprises and are developed to provide certain public services.
Social start-up enterprises have as their determining factor the business activity, but it is based on a moral aim influenced by business ethics or corporate social responsibility. The social aim directly influences the economic activity, which facilitates the development of an economy based on a greater degree on solidarity and environmental consciousness. Social start-ups might be for-profit.
Solidarity economy initiatives identify themselves explicitly with values of the solidarity economy movement. Their number is rather limited, but it can be expected to increase in the near future and as their motivations are different from the other type of SEs, we find it justifiable to elaborate on them in a separate group.
The types of social enterprises in Hungary are based on examining five main characteristics: the legal form of the organization; the dominant sectors and interests in creating the organization and the degree of hybridity; the main social aims; the main economic activities and the scale and form of employment. The models presented here are the different combinations of these characteristics. In the present poster presentation, the main characteristics of these types as well as some specific examples - provided by the researchers of the the research project entitled “Solidarity and social economy of post-socialist peripheries” - will be shown.
References:
Etchart, Nicole; Horváth, Anna; Rosandić, Andreja; Spitálszky, Andrea (2014): The State of Social Entrepreneurship in Hungary, SEFORÏS Country Report, NESsT
G. Fekete, Éva; Vicze Máté and Hámori Gergely (2014a): A map of social enterprises and their eco-systems in Europe - Country Report: Hungary. Brussels: European Commission.
Petheő, Attila István (2009): A vállalati társadalmi felelősségvállaláson túl: a szociális vállalkozás. Phd értekezés. Budapest: Budapesti Corvinus Egyetem.
Tóth, Laura; Varga, Éva and Varga, Péter (2011): A társadalmi vállalkozások helyzete Magyarországon. Budapest: NESsT.
1. Concepts and models of social enterprise worldwide
typology_of_social_enterprises_in_Hungary.pdf 