Radio România Internațional

Tag: social economy

  • The EU Supports Romania’s Social Enterprises

    The EU Supports Romania’s Social Enterprises

    Social
    enterprises are a segment of the economy that mainly focuses on how to provide
    help for a community, with a view to making it stronger. Such enterprises seek to
    promote a relevant activity rather than make a profit. For a few years now, the
    EU has encouraged social enterprises in Romania. In order to adapt their
    activity to the European legislation, but also in order to cater for a series
    of real social needs, social enterprises have gradually begun to develop in
    Romania, all the more so as, since mid-2015, Romania has a Law on Social
    Economy.

    In their early stages, many of these projects are financed through
    European funds. And since their ideas are worth looking at, the Representation
    of the European Commission in Bucharest has this year dedicated the ‘Yes, we
    care’ campaign to social enterprises. As part of this campaign, running for
    three years now, in 2016 ambassadors of EU member states have paid visits to such
    EU-financed social projects. Monica Loloiu is a member of the Representation of
    the European Commission in Bucharest. She will now be speaking about why such a
    theme has been chosen for the ‘Yes, we care’ campaign.


    Romania is no longer lagging behind. The fact that there is a Law on
    Social Economy, which has been recently passed by the two Chambers of
    Parliament, is an important step forward. There are organizations and companies
    that have already implemented projects
    targeting social economy, meaning that in Romania, people who are in the know
    are also aware they can change things through such projects. But what exactly
    does social economy mean? It means you think out a project in order to sort out
    social inequalities or in order to integrate the underprivileged into the labor
    market, thus giving them access to better jobs.


    And
    that is exactly what happened, thanks to a project themed MamaPan, a
    bakery where bread is prepared following all traditional rules: no additives,
    no preservatives and no industrial yeast. This social enterprise, a beneficiary
    of European funding, was mainly set up with a view to helping single mothers.
    With details on that, here is the manager of this small business Irina Sorescu:


    The project was initiated in November 2014, when we got
    the EU money, and the idea occurred within the Partnership for Equality
    Foundation, the foundation that set up the MamaPan bakery, which is a
    social enterprise, more precisely an association for women in vulnerable groups.
    After we’d had contact with some of these women, we realized that what they
    needed the most was a steady job. Of those vulnerable groups, single mothers
    were faced with the biggest risks. For several categories of employers, they
    are not desirable employees, for reasons pertaining to their family
    responsibilities and the fact they cannot be made redundant any time.


    Although
    the bakery products market is big, especially in Bucharest, and competition
    tough, the MamaPan social enterprise stood the test of time. Clients were drawn
    into it not only by the artisan bread, but also by the idea of helping the six
    single mothers working in the bakery. So the business has survived with flying
    colors. It’s been a year since the deadline for European financing expired and
    which the Partnership for Equality Center had no problem obtaining, as Irina
    Sorescu told us:


    As we were a rather experienced organization as regards
    the management of EU-funded projects, we had no problem writing the project,
    all the more so as the idea we had for that was clear. The problems we had
    while running the project were mainly related to the delays in the disbursement
    of funds and all sorts of other bureaucratic requirements. However, we may have
    not had the chance to start up the business without the initial financial aid
    that we got. It was much more difficult for us when the project saw its closing
    stage, the moment we had to be on our own, just like any other business, with
    no support from the outside, given that what we offered our women employees
    meant a great deal more than what an ordinary business could offer. It’s pretty
    difficult to create a distribution market, particularly in Bucharest, due to
    the competition in this field. By and large it’s very difficult to keep a business
    on the market and make a social business sustainable.


    ClayPlay is another social enterprise, based on craftsmanship and
    the revival of some lasting traditions. The business stemmed from the passion
    for ceramics of the initiator of this project, Gabriela Hobeanu:


    This is an EU-funded project. I got 25,000 Euros, which helped me purchase all the equipment I
    needed, which was pretty expensive. As regard the social economy part, from the
    very beginning I had two full-time
    employees. One of the project’s requirements was that at least one of them
    should be under 30. For the rest of it, we very much rely on students, with no
    official qualifications, but who are very passionate and skilled. ClayPlay
    is a combination of decorative and functional ceramics, which also involves
    staging workshops for adults and children alike. We have chosen this because
    it’s a very beautiful craft, which runs the risk of being forgotten.


    Appetite
    comes with eating, they say, so it was enough for people to learn about the
    existence of these workshops to have their interest rekindled. Here is Gabriela
    Hobeanu again:


    I have sensed an increased amount of joy in the people
    who come to our workshop, and they are happy that they can find something like
    this in Bucharest. It’s beautiful, refreshing…it’s therapy.


    As
    part of the ‘Yes, we care’ campaign, EU-funded social enterprises in Romania
    have been introduced to EU ambassadors in Bucharest as success stories.











  • Old Crafts and Community Welfare

    Old Crafts and Community Welfare


    At a time when ecology, social economy and the revival of rural traditions are under scrutiny there are people who have found the courage to combine them all. This is the case of a young family, Dana and Ionut Georgescu, the initiators of the “Paper Mill” project in the village of Comana, 25 kilometers away from Bucharest. Using the infusion method they recycle scrap paper and turn it into organic paper. The paper is then printed and bound by using machinery retrieved from old printing houses. The beginnings of the “Paper Mill” are closely connected to the birth of Elena, the 5-year old daughter of Dana and Ionut Georgescu. Here is Dana Georgescu:



    “We were working in private companies. After we had Elena and I spent more time with her at home I felt I had to do more than I had done before. I have always loved writing and everything that is beautiful. So I felt the urge to do more than go to office every day, earn some money and then spent it on holidays. That was back in 2007. From that moment on my husband and I started searching and we discovered we wanted to do something in the printing field. My husband has a passion for maps, so things started to fall into place. In 2009 we began taking classes. I attended a photography class and my husband learned how to bind books, although he was initially interested in making collages.



    Once the “Paper Mill” was designed, the Georgescus started looking for a location for it. They eventually got to see Comana, a village located in the middle of a natural park, with forests and a small delta on the Neajlov river. The village also hosts the memorial house of poet Gellu Naum. They thought the place was predestined to host their mill. Now they spend most of the week there, recycling and printing paper. They have even opened a small museum with old printing machines on display. Some of them are heritage objects, such as the one manufactured in Leipzig, in 1889, and which the Universul printing house had used. And because Comana received them in such a warm manner, they thought of giving it something back, so they set up a small social enterprise that produces booklets, postcards, bookmarks and, of course, hand-made eco paper. Ionut Georgescu:



    “This is a non-profit business, a rather special business for Romania where the concept of social economy is starting to gain ground and even be regulated. What we have discovered since we came here in Comana is that you cannot do something in a community without trying to offer it something in return. We have discovered that, the more we get involved in the community life, the more the community offers something in return. We have worked with children from the school in Comana. They have free access to our activities. We have found trustworthy people here, whom we work with at the Paper Mill. They are people we can count on, who understand our dreams. Theyre helping us do something for ourselves and for the community. We cannot separate economic development from the prosperity of the community that we live in. “



    Ionut Georgescu also told us a few things about Comanas economic situation and about how the community has received their ideas.



    “The rural area needs economic growth. The job offer is very poor here so most locals commute to Bucharest or the neighboring villages for work. They have no alternative. But we believe that handicrafts can increase their revenues and can even become their main source of income. When we first presented them our ideas they showed disbelief, but little by little, seeing what weve accomplished so far, have begun to realize that by using old things we can make a change for the better. So theyve become more open. Some of them have even got involved in our activities.”



    Children are the most enthusiastic when it comes to the Paper Mills activities. Dana Georgescu has created special workshops for them to see how paper is made and printed. Dana Georgescu:



    “At the beginning they are very curious and amazed by what they see. They are really surprised by what they find here. As I explain them how things work, they get more and more interested and when I get to the part where the paper is actually being made, they start competing with each other over who tries it first. There are cases when children tell us they will come to work here when they grow older. So they are very enthusiastic about what they see and learn here. “



    The Georgescu family has big plans for the years to come. They want to set up a “Craftsmens Village” in Comana. They have managed to find Norwegian funding to build small traditional houses where old crafts such as pottery, weaving and wood processing can be practiced and learned.




  • Social Enterprises in Rural Romania

    Social Enterprises in Rural Romania

    At a first glance the phrase ‘social economy’ seems a contradiction. The economy, as we know it, is profit and consumption oriented. And the social dimension, if any, is not necessarily obvious. Nevertheless, social economy is functional in the European Union and not only. Actually, this sector is a pillar of European economy, accounting for roughly 10% of the GDP. More than 11 million workers, about 4.5% of the EU’s active population, have jobs in the social economy and a European Parliament resolution issued in November 2009 encourages the development of social enterprises both as models for economic growth and as inter-community assistance. Elisabeta Varga, a consultant in the NESst foundation, which provides consultancy to various social enterprises, gives us a detailed description of social economy.



    “It has developed in response to the concrete needs of communities, and has come up with solutions to social issues, which are not covered by the public and private sectors. The objectives of social economy are the creation of new jobs and getting citizens more involved in community affairs. We can define it more clearly in opposition with the market economy, whose main aim is to make profit. As opposed to it, the social economy is designed to improve standards of living and foster new opportunities for the disadvantaged.”



    The concept of social economy is not strange to the Romanians either. It was operational back in the time of the communist dictatorship as manufacture cooperatives. Here is Dumitru Fornea, member of the Economic and Social European Committee.



    “Social economy is not a new concept, neither for Europeans in general, or Romanians in particular. Here, though, it took other forms. It started with the concept of ‘cooperation’ through cooperatives. Here, however, cooperatives failed because the communist state took control over this form of voluntary association. In the West, there have been forms that replaced these cooperatives, such as associations of workers in Spain and various types of foundations, which today are very active in Europe, and even in Romania. Social economy wants to capitalize on human resources to a maximum extent, focusing mostly on people, not on profit.”



    Marred by the communist period, social economy in Romania had difficulties after 1990. In spite of this, in 2009, the social economy employed 3.3% of all workers in Romania. By 2011 it became an important sector of economic and social life, with mostly NGOs active. In 2009, 69% of active entities in the social economy were created by various associations and foundations, with the rest of 31% being the property of cooperatives. Elisabeta Varga gave us examples of social enterprises in Romania. She said that most of them could be found in the countryside:



    “One of them is an association called ‘Village Life’, set up by a group of young people who used to work in various corporations, but later got back to the values of the village they want to promote. Their social enterprise deals with rural tourism. They want to promote this area, and for this they work with various households in the countryside which host tourists, showing them village life and their daily activities. They show them houses and beautiful places, as well as fast disappearing traditions. Another example is that of a foundation in Salaj county, which, along with the local authorities, have set up a social enterprise that wants to create a tourist brand on Barcau Valley. The foundation supports small honey makers in the area.”



    Since this is such an important sector for the EU, its institutions provide member states with several financing possibilities, as we found out from Dumitru Fornea:



    “In Romania, the European program POSDRU is meant to develop the social economy. They tried to provide support for the social economy between 2007 and 2013, and we hope for this financial support to continue in the next financial year. They tried to help social enterprises, but accessing these funds supposes a certain amount of experience and knowledge. That is why it is important to be an associate if you want to have success and access European funds.”



    However, even though people are willing to get involved in a social enterprise, the access to money is not always easy. Here is Elisabeta Varga:



    “For small entrepreneurs, for small social enterprises of the kind we mentioned, accessing these funds is very difficult. In fact, these funds are inaccessible to them. Firstly because of the co-financing requirement, which is an amount that many entrepreneurs simply don’t have. Practically, everything stops here when it comes to accessing European funds of this nature.”



    Improving access to financing was included in the 2011 ‘Initiative for Social Entrepreneurship’, which is an ample EU plan included in the EU 2020 Strategy. In spite of this, for social entrepreneurs across the country, European funds are still a rarity.


  • Social Enterprises in Rural Romania

    Social Enterprises in Rural Romania

    At a first glance the phrase ‘social economy’ seems a contradiction. The economy, as we know it, is profit and consumption oriented. And the social dimension, if any, is not necessarily obvious. Nevertheless, social economy is functional in the European Union and not only. Actually, this sector is a pillar of European economy, accounting for roughly 10% of the GDP. More than 11 million workers, about 4.5% of the EU’s active population, have jobs in the social economy and a European Parliament resolution issued in November 2009 encourages the development of social enterprises both as models for economic growth and as inter-community assistance. Elisabeta Varga, a consultant in the NESst foundation, which provides consultancy to various social enterprises, gives us a detailed description of social economy.



    “It has developed in response to the concrete needs of communities, and has come up with solutions to social issues, which are not covered by the public and private sectors. The objectives of social economy are the creation of new jobs and getting citizens more involved in community affairs. We can define it more clearly in opposition with the market economy, whose main aim is to make profit. As opposed to it, the social economy is designed to improve standards of living and foster new opportunities for the disadvantaged.”



    The concept of social economy is not strange to the Romanians either. It was operational back in the time of the communist dictatorship as manufacture cooperatives. Here is Dumitru Fornea, member of the Economic and Social European Committee.



    “Social economy is not a new concept, neither for Europeans in general, or Romanians in particular. Here, though, it took other forms. It started with the concept of ‘cooperation’ through cooperatives. Here, however, cooperatives failed because the communist state took control over this form of voluntary association. In the West, there have been forms that replaced these cooperatives, such as associations of workers in Spain and various types of foundations, which today are very active in Europe, and even in Romania. Social economy wants to capitalize on human resources to a maximum extent, focusing mostly on people, not on profit.”



    Marred by the communist period, social economy in Romania had difficulties after 1990. In spite of this, in 2009, the social economy employed 3.3% of all workers in Romania. By 2011 it became an important sector of economic and social life, with mostly NGOs active. In 2009, 69% of active entities in the social economy were created by various associations and foundations, with the rest of 31% being the property of cooperatives. Elisabeta Varga gave us examples of social enterprises in Romania. She said that most of them could be found in the countryside:



    “One of them is an association called ‘Village Life’, set up by a group of young people who used to work in various corporations, but later got back to the values of the village they want to promote. Their social enterprise deals with rural tourism. They want to promote this area, and for this they work with various households in the countryside which host tourists, showing them village life and their daily activities. They show them houses and beautiful places, as well as fast disappearing traditions. Another example is that of a foundation in Salaj county, which, along with the local authorities, have set up a social enterprise that wants to create a tourist brand on Barcau Valley. The foundation supports small honey makers in the area.”



    Since this is such an important sector for the EU, its institutions provide member states with several financing possibilities, as we found out from Dumitru Fornea:



    “In Romania, the European program POSDRU is meant to develop the social economy. They tried to provide support for the social economy between 2007 and 2013, and we hope for this financial support to continue in the next financial year. They tried to help social enterprises, but accessing these funds supposes a certain amount of experience and knowledge. That is why it is important to be an associate if you want to have success and access European funds.”



    However, even though people are willing to get involved in a social enterprise, the access to money is not always easy. Here is Elisabeta Varga:



    “For small entrepreneurs, for small social enterprises of the kind we mentioned, accessing these funds is very difficult. In fact, these funds are inaccessible to them. Firstly because of the co-financing requirement, which is an amount that many entrepreneurs simply don’t have. Practically, everything stops here when it comes to accessing European funds of this nature.”



    Improving access to financing was included in the 2011 ‘Initiative for Social Entrepreneurship’, which is an ample EU plan included in the EU 2020 Strategy. In spite of this, for social entrepreneurs across the country, European funds are still a rarity.