You can find the latest information about social enterprises in our new article.
The social economy is a collection of activities whose primary goal is to achieve a positive social impact.
Social economy activities primarily serve to fulfill public and community interests. These are socially beneficial services that can be implemented across a wide range of areas of social and economic life: from healthcare, through social assistance, education, and upbringing, to the development of physical culture and environmental protection.
Today, the social economy is a recognized and established sector of the economy in EU countries. Its integration into public policies has a positive impact on achieving goals of public interest.
Act No. 112/2018 Coll. on the Social Economy and Social Entrepreneurship and on Amendments to Certain Acts defines a social enterprise as a social economy entity that places its goods and services on the market, with its primary objective being social benefit rather than profit. If it generates a profit from its activities, it reinvests the majority of it into its primary objective (at least 51% is used for the company’s operations, e.g., to pay current invoices) – social benefit, in accordance with the scope of activities and the relevant business plan.
A social enterprise involves its employees, consumers, local residents, or other individuals who care about the successful fulfillment of its mission in its activities. A social enterprise must be viable and financially sustainable, which also includes the ability to repay loans that may be granted to it on preferential terms. A social enterprise may carry out its socially beneficial service in the following areas:
- provision of healthcare,
- provision of social assistance and humanitarian care,
- creation, development, protection, restoration, and promotion of spiritual and cultural values,
- protection of human rights and fundamental freedoms,
- education, upbringing, and promotion of physical culture,
- research, development, scientific and technical services, and information services,
- creation and protection of the environment and protection of public health,
- services to support regional development and employment,
- provision of housing, management, maintenance, and renovation of the housing stock,
- provision of financial resources to social economy entities for the performance of socially beneficial services.
A newly established enterprise or an existing enterprise may apply for social enterprise status. The main documents used to assess an enterprise’s eligibility for social enterprise status include the articles of incorporation/articles of association, the business plan, proof of good standing, and so on.
In terms of the focus of its activities, a registered social enterprise may be (multiple registrations are also possible simultaneously):
- an integration enterprise (employment of persons with disabilities and disadvantaged/severely disadvantaged job seekers, or vulnerable persons)
- a social housing enterprise (construction and rental of social housing)
- a generally registered social enterprise.
Support options for social enterprises:
direct support
- investment aid (calls from ESIF / Ministry of Labor, Social Affairs, and Family)
- compensatory aid (reimbursement of wage costs for Integration Enterprises up to 75%)
- aid to support demand
indirect support
- income tax relief
- VAT relief for individuals
- loans on preferential terms.
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