4. Social Business Creation – Slovakia

Social Business Creation - Slovakia

Creation of Social Businesses in Slovakia 2013-2015 through the EU Erasmus+ Program.

The Slovak ONG EPIC and SBE participated in a project together that lasted two years 2013-2015 which aimed to identify 10 social business opportunities in 10 municipalities with high unemployment rate in Eastern Slovakia. In collaboration with the Mayors of Slovak municipalities, EPIC, SBE, and a group of entrepreneurs and volunteers from the business sector, including Ashoka Fellow Michal Smetanka, have created and presented 10 business plans to the municipalities, following the social business principles. The plans were approved in all municipalities from the Municipality Council. The social enterprises have been launched in the municipalities in the first half of 2015. Through the building of social businesses, about 50 new jobs for disadvantaged and marginalized people have been created in 2015 for the rural development of Slovakia. Despite the project has been completed and finished, EPIC and SBE are still monitoring, in collaboration with the municipalities, the development of the social businesses and their sustainability. The project “Strengthening of individual capacity through the institution of social businesses in the municipalities”, has been supported from the Erasmus+ Program of the European Commission.

Overview of Project activities:  

Identification of social business opportunities:

  • Municipalities assistance to identify social business opportunities, research of feasible activities that are sustainable financially.
  • Creation of a Catalogue containing the social business opportunities identified, describing municipalities’ needs to launch new initiatives in favor of marginalized communities.
  • The catalogue listed 23 social business opportunities with a description of the business and financial plan, the human and material needs.
 

Cooperation with volunteers in the entrepreneurial context:  

  • Volunteers and professionals coming from the business sector and entrepreneurial context (Poštovábanka) collaborated with us in developing the project. Particularly they aided the municipalities with the research of commercial contacts and in preparing the social business plans, offering also legal, IT, marketing services, etc.

 

Training of Mayors and volunteers in the creation of social businesses:  

  • SBE provided the training to the Mayors, the social entrepreneurs and the volunteers. Topics of the training included: reasons to build social businesses using common resources, goals to create social businesses, social business legal aspect, social business plan designing; public procurement, direct and indirect advantages due to the existence of social businesses, complex benefits, measurable indicators of social impact, how to develop the manual on social business creation.
 

Training on the social business model offered by SBE: 

  • Training goal: problem identification and solution (setting), development and creation of social business strategy.
  • Practical elaboration of social business plans for new social businesses.
  • Social problem solving through self-sufficient economic activities.
  • Support to enhance to social and economic progress.
  • Collaboration of all involved parts (Municipality Council, Mayors, volunteers, EPIC, SBE, etc.).
  • Concept elaboration(from concept to implementation activities, deadlines, budgets and financial plans, etc.).
 

Cooperation with Bratislava University – Faculty of Economics:  

  • The faculty of economics of Bratislava University has organized workshops to train students about social business and sustainable development.
  • Social Business Earth has offered a Social Business Workshop for students on social business based on Prof. Muhammad Yunus’
  • EPIC has led a workshop in “Politics of Labor Market and Employment” emphasizing the social business model as a sustainable alternative for local development.
  • Students integration in volunteering activities in every municipalities.
 

Preparation and elaboration of business plan:  

  • Business opportunities identification, market analysis, marketing, strategy, human resources, financial plan.
  • Business plan designed for 10 municipalities and presented to the Municipality Councils.
  • Business plan presentation and approval from the Municipality Councils.