Tag: entrepreneurship

  • Social Entrepreneurship between social assistance and competitiveness

    Social Entrepreneurship between social assistance and competitiveness

    Launched
    just a couple of months ago in Romania the notions of social entrepreneurship
    and social economy were well received, all the more so as partially they
    overlapped an older activity, very familiar with the Romanians: the small craft
    cooperatives.




    Social entrepreneurship introduces the idea of
    social need, which can be satisfied through an economic activity, which doesn’t
    make a profit in money. In other words, social enterprises aren’t interested in
    making money but rather in developing human relations and skills. Romania
    already has small workshops where underprivileged citizens, such as former
    homeless people, single unemployed mothers, or former victims of human
    trafficking, are employed and learning a trade.




    Trades may vary from sewing and baking to mending
    IT equipment. The employees get the minimum wages but they put their lives back
    on track again. This is the immaterial gain and the material one is enough for
    the company’s sustainability. So from the viewpoint of mutual assistance, the
    activities of social enterprises and NGOs are overlapping. In fact, many social
    entrepreneurs have started as NGO managers, such as Raluca Chisu, coordinator
    of the Kinetobebe Association.




    Raluca
    Chisu: We are an NGO with
    40 employees and a management and coordination team. Our resources come from
    two directions: we have an economic resource, which means that we are providing
    services to the market and get paid for these services and a social resource,
    so to say, which means that we are getting money from donations and from
    sponsors. This is what Kinetobebe Association, which I am coordinating, does.
    We have three centers of pediatric recovery providing services in this field,
    of the medical recovery of children. We have 150 patients a day and a team of
    therapists working every day, and that means we must have the financial resources
    to cover these expenses. The social resource, from donations and sponsors is
    not very reliable, so we must cover our expenses from some economic activities.
    However, these activities aren’t supposed to make a profit and if they do, this
    profit must be reinvested in the social activity.




    Any social enterprise must
    satisfy a social need and, and Raluca Chisu created this enterprise to respond
    to the children’s medical needs.




    Raluca
    Chișu: The fact that 25% of
    the children born are in need of recovery is already a prerequisite. The state
    comes up with solutions, but cannot cover the need. For instance, in the case
    of motor recovery, which involves physical and cognitive recovery, the state
    covers only 5% of what children need. A child with a neurological condition
    needs 365 days of recovery and the state facilities can provide only 10 days,
    two hours a day.




    It is only natural, Raluca
    Chișu says, that social enterprises or NGOs take over some of this burden and
    help the state with these activities.


    The main condition is that the
    social need should not be exploited to make money. Another social need seems to
    be the idea of providing support for the talented young people, enabling them
    to make a name for themselves in the cultural life. This is actually the
    purpose of the association coordinated by musician Doina Saliu, organizer of
    musical festivals and master courses devoted to the young people, which have
    professional musicians as invitees.




    Doina
    Saliu: I have created an online festival together with my
    colleagues. We didn’t have other solution than to resort to donations to cover
    my expenses in this period. Of course I have two volunteers, an accountant and
    an IT expert, but this cannot last forever, you know. Artists are also
    volunteering for this project, but this also cannot go on forever. Recently I
    have offered contracts to my colleague contributors, because they volunteer,
    but like I said, this activity cannot go on like that forever. I am speaking of
    artists of international repute here.




    This is an example where
    charity is corroborated with economic activities fostering the careers of young
    artists, who would remain unknown without such support.


    Besides this mixture of
    entrepreneurship and charity – a mixture which sometimes leads to ambiguities -
    social entrepreneurship also involves contact with the authorities. The main purpose
    of this interaction is to promote public policies, which must be beneficial to
    the domain in which the social enterprise is activating. Here is Raluca Chisu
    at the microphone again.




    Raluca
    Chișu: We, as NGOs or
    associations, very much rely on public policies. And most of the time we should
    initiate these public policies. Mrs. Saliu, for instance, should come up with a
    public policy for the support of the young artists. We have been lobbying the
    ministries for quite some time now for various public policies.




    The
    law on social entrepreneurship was promulgated in Romania in 2016. The first
    statistics on Social enterprises were also published that year. So, at the end
    of 2015, this sector hired over 136 thousand people, including cooperatives,
    mutual assistance funds for employees or pensioners, mutual societies,
    associations, foundations and other legal social economy organisations.
    Furthermore, over 3 million Romanian citizens have registered as members or
    direct beneficiaries of these entities. Romania’s social economy figures have
    allegedly increased of late.


    (bill)

  • Women and Business

    Women and Business


    Equal opportunity and encouraging SMEs, two of the fundamental policies of the EU, can contribute to emerging out of the crisis, whether we talk about global or personal crises. The solution may depend on daring women and the opportunities offered for their entrepreneurship. In 2013, according to EU statistics, businesswomen accounted for only 34.4% of the self-employed European entrepreneurs, holding only 30% of newly created businesses. However, their number seems to be growing. Late last year, Bucharest hosted the first fair for businesswomen in Romania, B-Fair, organized by an association called “Women in Business”. Set up in 2009 by a young entrepreneur, the organization comes in support of women who want to build a business, helping them find the information and support they need. The fair is an extension of this network where people exchange experiences. Adina David is a press officer with the association:



    Adina David: “This year we’ve held B-Fair for the first time. Generally we organize business networking sessions with women speakers, but the fair managed to bring together businesses run by women in a more official and general venue, where they could showcase their products, in addition to networking.”



    B-Fair was attended by 20 companies with exhibitions, and was visited by between 200 and 300 people during the weekend. The participating companies, most of them set up or run by women, were not just SMEs. Many large companies, even multinationals, have women managers and make products aimed at women. We asked Adina David if companies run by women generally cater to women, and if they have a propensity for catering to certain areas:



    Adina David: “We did notice an inclination towards certain areas considered typical of women, such as consultancy or cosmetics. At the same time, a lot of ladies have opened businesses in the IT and automotive sectors.”



    Adina Filculescu is an attendee at B-Fair and member of the organization called Women in Business. She runs a business in an area where women dominate: flowers and event organizing. She started this business right after college, and she says she did not feel discriminated against in relation to men, and that she did not have to face additional hurdles for being a woman. However, she had a lot of hard work to do, but she says she did it happily:



    Adina Filculescu: “It is a lot of work, sometimes I work 17 hours a day, but I don’t feel tired, because I think of the outcome I desire, the satisfaction of the people around me, and my personal satisfaction. If I worked for someone else I may not have worked with such drive and pleasure. I had nights when I worked until the morning, and weekends when I couldn’t go to the mountains for a trip with friends. As for the bureaucracy, we all know how things are: you have to queue for some paperwork, or some tax payment. You have to adapt to each situation.”



    As a member of the Women in Business association, Adina Filculescu monitored the trends of the last few years, and here is what she found:



    Adina Filculescu: “A lot of women started looking into a business of their own, and even left their jobs with corporations or public institutions. They developed their own businesses in the areas that they liked. I noticed that passion was the basis for their choice. On top of the capital needed to open a business, they needed a lot of courage to change their life from that of an employee to that of an entrepreneur.”



    Their courage came from the drive to be independent, and from the emergence of personal priorities: family and children. Here is Adina David once again:



    Adina Filculescu: “While working at multinationals, they have little time for their families, and especially when the first child appears, they really don’t have enough time for their families anymore. That is why they choose to become entrepreneurs, which gives them a flexible schedule. In addition, even though multinationals pay higher salaries, women can make their business grow, securing substantial incomes. The start is always difficult, but for many of them this is not a great impediment.”



    A lot of employees in public or private institutions, in their wish to be their own boss eventually, start a business after work, holding on to their day job. It is not easy, but the wish to be independent is overwhelming in those cases. It is also encouraged by EU institutions, which have already created a European network of mentors for women entrepreneurs, a division of the Directorate General for SMEs.