Nikos G. Sykas
Strategy, Communication & Communications Consultant Innovation
The pandemic Covid-19 crisis marks the beginning of a massive paradigmatic transition from a period of top-down centralised institutions to a world of distributive and collaborative power and the democratisation of innovation and creativity. The crisis requires strong responses based on solidarity, cooperation and responsibility.
The Plan proposed in this article is based on the provision of strong incentives by the Central Government and Local Government to Social Enterprises to develop innovative products, services and actions to reduce the impact of the pandemic and to enhance employment and resilience of local communities.
The Social Economy has played an important role in addressing and mitigating the short and long term effects of the Covid-19 crisis. In the short term, social economy actors have helped in the recovery from the crisis by providing innovative solutions aimed at strengthening public services to complement government action. In the long term, social economy organisations can help shape the post-crisis economy by promoting economic and inclusive models.
In recent years, globally and at EU level, there has been a rapid growth of the Social Economy and Social Enterprises. In the EU, there are 2.8 million social economy entities, representing 6.3% of EU employment, but their impact exceeds these numbers.
Social Entrepreneurship:
α) It is a distinct form of entrepreneurship that aims to achieve a social purpose in an economically sustainable way. b) It involves initiatives to develop, finance and implement new solutions to real social, environmental and cultural issues using profitability as a means rather than an end in itself. c) It can take both profit and non-profit forms, without changing its ultimate purpose, i.e. the achievement of a social purpose. The ‘social and solidarity economy’ is defined as the set of economic activities based on an alternative form of organisation of relations of production, distribution, consumption and reinvestment, based on the principles of democracy, equality, solidarity, cooperation and respect for people and the environment.
Social Entrepreneurship is an innovation. All innovations can be analysed and classified according to the four main types of innovation: product innovation, process innovation, organisational innovation and marketing innovation. The success of Social Enterprises is a function of many interdependent factors which can be coded as follows:
- Product Innovation: Strengthening the Social Enterprise Ecosystem. Promoting the role of new technologies and digitalisation in the Social Economy and Social Enterprises. Access to structures and know-how. Social Enterprise grants, access to finance. New business models, alternative financing channels (participatory finance, microfinance, peer-to-peer lending, block chain). Social Enterprise obligations to be commensurate with the benefits/incentives. Conditions for exempting Social Enterprises from paying fees, royalties, taxes or other forms of government charges. Social benefit/impact. In many countries the definition of social impact extends beyond vulnerable / disadvantaged groups – caring for the elderly, homeless and groups with specific health problems, helping poor families, integration into employment, supporting people in rehabilitation – to include public interest objectives: environmental protection, ecological waste management, recycling, energy communities, promotion of sport, art, culture, science, research, restoration of historical heritage and conservationProcess Innovation: Involvement of associate members with paid work and volunteers with unpaid work. Participatory Governance and democratic processes in decision-making. Regular feedback and monitoring, measurable results/accountability. Not to create excessive and bureaucratic oversight that will prevent organisations/businesses from complying with it. Pre-defined procedures and rules in terms of profit distribution to members, shareholders and owners to ensure financial sustainability. Partnership between private and public organisations, Social Innovation. Specialised education and training in social entrepreneurship, online training platforms.Organisational Innovation: Developing skills essential for social entrepreneurs, such as teamwork, adaptability, adaptability, sense of initiative, risk-taking, leadership, communication, networking and innovative thinking. Cultivating an open, creative culture. Encouraging diversity and tolerance/receptiveness. Reducing inequalities and increasing social cohesion. Prosperity of the whole. Social Capital, Social Exchange, sustainable Social Networks. Social Capital is the set of intrinsic resources of social relations that facilitate collective action. It includes trust, security, cooperation, and the set of social norms and traditions. We build social capital with our every deed, behavior, action and opinion throughout our lives. A Social Entrepreneur with sufficient social capital can more easily interact with social partners, mobilize, and lead.Marketing innovation: transparency – the annual report (financial report and activity report) should be public on the company’s website. Increase the level of awareness and information of all stakeholders about the benefits of Social Entrepreneurship. Citizen activation and cooperation actions in the solidarity economy. Collaboration with international organisations/forums to develop social economy and social entrepreneurship policies. Exchange of best practices of EU Member States. Establish a support mechanism for the development, promotion and promotion of Social Enterprises and other Social Economy initiatives.
Creation of a Social Entrepreneurship Network which will include all actors with a common vision for the development of the ecosystem for the ‘Common Good’. Launch of a competition for a logo design for the branding of the Social Entrepreneurship Network. Electronic platform for connecting actors, partners and social partners: expanding functionalities, promoting the platform to a wider audience. National ‘buy social’ campaign to support Social Enterprises.
The above factors and distinct competences that comprise each aspect/dimension of a Social Enterprise must be combined with each other in a way that maximises the benefit/social impact and minimises the risk/entrepreneurial risk.
After many years of research I have developed a new, dynamic Innovation Model that can help Organizations to: a) Discover and exploit valuable asymmetries (opportunities) that create multiplier benefits and advantages and b) Defend against negative asymmetries (risks).
This new Innovation Model – presented in detail in a practical 235-page Guide I have prepared – can be applied in all sectors and at all levels, scales and sizes: Public Services, Enterprises (Startups and Large Companies), Local Government Organisations, NGOs, Academic Institutions, Circular Economy, Economic Diplomacy, Nation Branding, etc. This innovative tool can help Organizations to innovate much more effectively.
To sum up: Social Entrepreneurship – with the help of the appropriate tools and supportive instruments for the implementation of the institution and the active involvement of Local Government and local stakeholders – can contribute directly and substantially to the exit from the new major recession caused by the pandemic.
