Social Entrepreneurship Ecosystem in Slovakia

Slovakia shines brightest for lovers of the outdoors and nature. The High Tatras are heavenly for walking or winter sports, national parks like Slovenský Raj sparkle with waterfalls or castles like from the fairy tales[1].

Does Slovakia shine also for social entrepreneurship ecosystem?

The definition of a social enterprise was introduced into Slovak legislative on the 1st of September 20084 by an amendment of the Act nr. 5/2004 on employment services. Social enterprise is defined as a physical or legal person, which:

  • Employs workers that were disadvantaged job seekers prior to the employment. At least 30 percent of his workforce must constitute of disadvantaged job seekers.
  • Supports employed disadvantaged job seekers in finding employment on the free labour market.
  • Reinvests at least 30 percent of financial resources gained from own activities that remain after paying all costs associated with own activities into the creation of new job positions or into improving working conditions.
  • Is listed in the register of social enterprises[2].

At the moment, there is the concept proposal of the Law of Social Economy and Social Entrepreneurship being discussed by the Ministry of Labor, Family and Social Affairs, experts and wider public. If the law will get approved it will come to the force by the beginning of 2018.

Up until now in Slovakia the following organisations are often seen as a part of the social economy sector:

  • Social enterprises (as defined by Employment Law) – the work integration structures, which help to (re)introduce disadvantage people into the labour market.
  • Sheltered workshops/sheltered workplace (as defined by the Employment Act)- the targeted group are largely individuals with disabilities.
  • Cooperatives – Are autonomous voluntary associations of persons with an objective to perform joint economic, social and cultural efforts and meet the needs through the democratically owned and managed enterprise.
  • Non-profit organisations with the revenue generating activities: Non-profit Organizations providing Public Benefit Services (NOPBS), Foundations, Non-investment Funds and Civic Associations.
  • Local public enterprises/municipality companies – established and run by the self-regional governments or municipalities, operating either under its own name and own account, or it establishes a company.
  • Private business organisations – legal entities established for the purpose of business.

SOCIALNEPODNIKANIE.SK

[1] Available at https://www.lonelyplanet.com/slovakia
[2] Available at http://www.zakonypreludi.sk/zz/2004-5/info

For more detailed info about the social entrepreneurship in Slovakia read:

Strečanský, B.; Stoláriková, K.: Social Economy and Social Enterprises in Slovakia

Majerčáková, D.: Social Entrepreneurship as Challenge for Slovak Social System

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