Annex to Resolution no. 164 of the Council of Ministers of 12 August 2014 (Monitor Polski 2014 Item 811 volume 1)

National Programme for Social Economy Development

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Warsaw 2014

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Contents

National Programme for Social Economy Development...................................................................1

Abbreviations..................................................................................................................................3

Introduction....................................................................................................................................5

Context of Europe 2020 Strategy.....................................................................................................11

The context of the national strategic programming.........................................................................13

Definition of the social economy and social enterprise....................................................................16

Degree of development of social economy......................................................................................18

Civic sector...................................................................................................................................18

Cooperative sector.......................................................................................................................19

Social cooperatives.......................................................................................................................20

Reintegration entities...................................................................................................................21

Finances of the social economy sector.............................................................................................21

Support for the development of the social economy sector............................................................22

Conclusions drawn from the diagnosis.............................................................................................27

Chapter II Objectives of the National Programme for Social Economy Development......................29

Result indicators...............................................................................................................................34

Flexibility and Programme management..........................................................................................35

Chapter III Priorities of the National Programme for Social Economy Development.......................36

Priority I. Social economy on a socially responsible territory.......................................................37

Priority II. Regulatory activities in the field of the social economy...............................................45

Priority III. Social economy support system..................................................................................50

Priority IV. Incorporating social economy into the mainstream public policies on the national and regional level................................................................................................................................56

Priority V. Education for the social economy................................................................................62

Chapter IV Monitoring the implementation of the National Programme for Social Economy Development................................................................................................................................68

Chapter V Basic objectives of the implementation system.............................................................73

Chapter VI Financial Scheme for the National Programme for Social Economy Development.........75

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AbbreviationsABI – Academic Business IncubatorAKSES – a system of accreditation and operating standards for social economy support institutionsBGK – Bank Gospodarstwa KrajowegoCBOS – Public Opinion Research CentreCEP-CMAF – European Standing Conference of Co-operatives, Mutual Societies, Associations and Foundations. In 2008, CEP-CMAF adopted the name Social Economy Europe.CES – Social Economy CentreCIP EQUAL – Community Initiative Programme EQUALCIS – Social Integration CentreCLLD – Community-Led Local Development, an instrument (method) intended to implement actions which can or should be implemented by local communities and which are targeted at local development,CPV – Common Procurement Vocabulary Codes, which constitutes a unified system of public procurement classificationCSR – Corporate Social Responsibility EMES – European Research Network, mostly engaged in issues of the third sectorERDF – European Regional Development FundESF – European Social FundEU – European UnionFIO –Civic Initiative FundFLAG – Fisheries Local Action GroupGUS – Central Statistical Office of PolandILO – International Labour OrganizationITI – Integrated Territorial InvestmentsKIS – Social Integration ClubKKRES – State Committee for Social Economy DevelopmentKPRES – National Programme for Social Economy DevelopmentKRS – National Court RegisterKRS – National Cooperative CouncilKSES – State Secretariat for Social EconomyLAG – Local Action GroupLGU – local government unitMG – Ministry of EconomyMIiR – Ministry of Infrastructure and DevelopmentMPiPS– Ministry of Labour and Social PolicyMS – Ministry of JusticeNGO – non-governmental organizationNPR – National Reform ProgrammeNSRO – National Strategic Reference FrameworkODR – Rural Advisory CentreOECD – Organisation for Economic Co-operation and DevelopmentOP – Operational ProgrammeOP HC – Operational Programme “Human Capital” 2007–2013OP KED – Operational Programme Knowledge, Education and Development for 2014–2020OP TA – Operational Programme “Technical Assistance” 2007–2013OPS – Social Welfare CentreOSES – Polish Social Economy Meetings

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OTW – Occupational Therapy WorkshopsOWES – Social Economy Support CentreOWSS – Social Cooperative Support CentrePBO – public benefit organisationPCPR– Poviat Family Support CentrePE – social enterprisePES – social economy entityPFRON – State Fund for Rehabilitation of Disabled PersonsPIB – Public Information BulletinPKD – Polish Classification of Economic ActivityPUP – Poviat Employment AgencyPZP – Public Procurement LawRDP – Rural Development Programme RDPP – Public Benefit Activity CouncilREGON – National Official Business RegisterRIO – Regional Accounting ChamberRKR ES – Regional Committee for Social Economy DevelopmentROP – Regional Operational ProgrammeROPS – Regional Centre for Social PolicySAC – Central Statistical ApplicationSKES – Standing Conference on the Social EconomySKOK – Cooperative Savings and Credit UnionSME – small and medium enterprisesSOF-1 – Report on activities of foundations, associations and other social organisations prepared by GUSSOF-4 – Report on activities of economic and occupational self-government, and employers’ organisations prepared by GUSToR – Terms of ReferenceTZN – Technical Educational CentreUOKiK – Office of Competition and Consumer ProtectionUZP – Public Procurement OfficeWPRES – Voivodship Programme for Social Economy DevelopmentWUP – Voivodship Employment AgencyVC – venture capitalZAZ – Vocational Activity EstablishmentZLSP – National Auditing Union of Workers’ CooperativesZUS – Social Insurance Institution

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IntroductionPursuant to Article 15 sec. 4 item 2 of the Act on Principles of the Development Policy dated 6 December 2006 (Polish Journal of Laws/Dz. U. of 2009 no. 84, item 712, as amended1), the National Programme for Social Economy Development (KPRES) is a development programme and, therefore, it constitutes an operational implementation document which was drawn up in order to implement the medium-term national development strategy – the National Development Strategy 2020 and Social Capital Development Strategy, Human Capital Development Strategy, National Strategy of Regional Development and other development strategies.

In 1997, the Luxembourg European Summit on employment initiated coordination of the employment policy at the European level. On that occasion, the Ministers of the Council of Europe for the first time expressly referred to the social economy in their text and listed it in the part on entrepreneurship as one of the main employment policy stances2. Since the beginning of the 21 century, the social economy has gradually been included in the European Union (EU) policies. It has become a recognised method of acting under the EQUAL Initiative 2000–2008 and, in broader terms, under the European Social Fund (ESF). In 2003, the EU published a communication on the promotion of cooperative societies in Europe for European governments and institutions. The social economy has also been recognised at the global level by the Organisation for Economic Co-operation and Development (OECD) and International Labour Organisation (ILO)3.

Polish representatives of the civic sector, cooperative sector and public administration participated in European activities since the First European Social Economy Conference in the EU Candidate Countries in Prague in 2002. On 27–29 October 2004, Poland organised the Second European Social Economy Conference in the EU Candidate Countries in Krakow, which was attended by almost 1000 participants from 31 states.

One of the factors that prompted Poland to development was the implementation of the EQUAL Community Initiative Programme from August 2004 to 2008, when methodological guidelines for the development of the social economy and specific solutions supported by regulatory activities of the state were developed. Other drivers leading to the development of the social economy were the National Development Strategy 2007–2015 and the National Programme for Social Security and Social Integration for 2006–2008 , while in financial term these were the Civic Initiative Fund, operating since 2005, and Operational Programme Human Capital (OP HC) agreed in July 2007.

A new stage of the development began on 27 June 2008 in the Gdańsk Shipyard, where the Social Economy Conference – “The Economy of Solidarity” took place. The aim of the conference was to integrate national and foreign groups convinced that the social economy may be an important tool in solving social problems. At the Conference, they announced the Manifesto of Social Economy prepared by the social side and the government presented a support plan for the activities related to the social economy. In one of its postulates, the Manifesto provided that It is necessary to build a permanent communication and dialogue mechanism between the decision-makers (both from legislative and executive bodies) and the social economy sector. The mechanism would allow to create in Poland, like in other countries, a long-term strategy for the development of social economy as a part of broader efforts to support the growth of civil society. The strategy should be developed in co-operation between inter-ministerial government committee and the of social economy sector.

These common public and social concepts and activities resulted in the establishment of a joint governmental, local governmental and civil Team for Systemic Solutions in the Field of Social Economy (hereinafter referred

1 Amendments to consolidated text of the act referred to above are published in the Polish Journal of Laws/Dz. U. of 2009 no. 157, item 1241, of 2011 no. 279, item. 1644, of 2012 item. 1237, of 2013 item. 714 and of 2014 item 379).2 Ekonomia społeczna – Kraków 2004. II Europejska Konferencja Ekonomii Społecznej – Materiały, MPS, ZLSP, Warsaw 2005.3 Jerzy Hausner [ed.], Przedsiębiorstwa społeczne w Polsce. Teoria i praktyka, Cracow University of Economics, Malopolska School of Public Administration, Kraków 2008;ahttp://www.e-gap.pl/PUBLIKACJE/es%20skrypt4.pdf.

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to as the “Team”) on 15 December 2008 pursuant to Order of the Prime Minister no. 141. As stipulated in the order, the Team’s task was to (among others) develop a draft strategy for social economy development.

On 20 July 2011, the draft was discussed during the Team’s meeting and it was decided to submit it for further work. The Programme was officially presented on 5 and 6 June 2012 during the Third Polish Fair of Active Forms of Assistance in Byczyna, which was attended by the Minister of Labour and Social Policy, Władysław Kosiniak-Kamysz.

On 8 June 2012, the KPRES draft was subject to public consultations which lasted until 28 September 2012. The following opportunities were taken during initial consultations:

the draft was presented at conferences, seminars and in training sessions; articles on the subject were published online (e.g. on ekonomiaspoleczna.pl website); written opinions were collected; an online questionnaire was published by the Department of Public Benefit in the Ministry of Labour

and Social Policy.

On 8th October 2012, the KPRES draft and a consultation report were presented at a meeting of the Team for Systemic Solutions in the Field of Social Economy.

It must be emphasised that KPRES is a governmental document which specifies the key directions of public intervention which are supposed to assure the best conditions for the development of the social economy and social enterprises. It is mostly addressed to public institutions which develop and implement particular policies, and to people acting within the social economy sector.

KPRES should be treated as a comprehensive document that accounts for the current social, economical and cultural reality which, thanks to its structure and contents, is a dynamic document open for phenomena and processes that may arise in the immediate and distant future and which potentially impacts the development of the social economy.

On the one hand, the social economy and social enterprises may develop using their own internal resources and use public interventions in a limited scope. On the other hand, in the new perspective, new situations and phenomena may appear within the areas covered by KPRES support and the social economy must be prepared for it.

Authors of KPRES used their the best knowledge to specify the objectives, related actions and their expected results while taking account of the political, social and economic context in Poland and the European Union, and put particular emphasis on the Community and national strategic objectives in the new financial perspective. KPRES requires people coordinating the implementation process to be flexible, open to the changeable environment and to be ready to amend the document, change the methods of achieving its objectives and implementing the policy, if such phenomena can significantly impact the development of social economy in Poland.

Wide-ranging consultations on KPRES and its part in creating the representation of various environments and sectors resulted in a document which specifies and recommends detailed state’s and interested parties’ activities in order to develop the social economy in Poland; those activities are intended to increase the social economy’s significance in terms of the development and implementation of public policies. Moreover, a relevant inter-sectoral approach is required to monitor and evaluate the progress in Programme implementation in order to ensure the greatest possible flexibility of KPRES in the face of new challenges.

The draft KPRES has six chapters, as required by the Act on Principles of the Development Policy. The first chapter presents definitions; the diagnostic part presents the statistics about the social economy sector and specifies the scale and reach of the current social economy support system. Chapter one also describes what is expected from the social economy sector. Chapter two describes the main objective and specific objectives of the Programme, and indicates the Programme’s place and significance in relation to the government priority structure, indicates the results and related indicators. Chapter three sets forth the priorities, actions and particular directions of public intervention. Chapter four contains a description of the manner of Programme monitoring. Chapter five presents the basic premises of the implementation system, and Chapter six – the required finance scheme suitable for the development programme.

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Pursuant to Article 15 sec. 6 of the Act on Principles of the Development Policy dated 6 December 2006, the Programme was subject to an ex ante evaluation4. The report indicated that the logical structure of the Programme is correct and that the objectives have the nature of a planned social change. The described primary results may impact their implementation. The relations between the results and priorities indicate that it is possible to obtain a synergy effect in the field of interventions, i.e. create a situation in which particular results will be mutually supported by various actions and their partial results5. It has also been found that the proposed strategic approach may be deemed a response to the needs and problems of the SE sector in Poland, which was possible due to the engagement of experts from various sectors and public consultations6.

The most important recommendations developed in this respect include:

analysing the problems indicated in the diagnosis and summarizing them, presenting their sources and providing a clearer indication of how the diagnosed problems translate to objectives and priorities of the planned intervention;

supplementing the document with an explanation of the premises of the new logical framework and defining the key elements of this approach;

emphasising that a broad, open formula of the Programme is intended to allow the regions to adjust the Programme to their needs and specificity; monitoring which KPRES areas are implemented and which require modification;

analysing the risks and preparing a plan of alternative solutions within the scope of KPRES implementation;

in-depth studies of the relevance of indicators which will be used to verify the existing indicators and develop new ones (also on the basis of comparative studies, including international studies).

The recommendations were included in the programme and, in some cases, directed to further works at the implementation stage.

After the document was unanimously adopted by the Team for Systemic Solutions in the field of Social Economy led by the Minister of Labour and Social Policy on 17 July 2013 and approved by the management of the department of labour and social policy, on 17 September 2013 it was submitted to inter-ministerial and public consultations; the deadline for submitting comments and remarks was 25 October 2013.

All comments submitted during the consultations were analysed in November and December 2013. The results of this analysis were presented in January 2014. On 5 February 2014, a consultation conference was organized, while in March and April 2014, final arrangements with the Ministry of Finance and the Ministry of Infrastructure and Development were made. In April 2014, the draft was submitted for consultations and agreed by the Joint Central Government and Local Government Committee. In June 2014, the draft was adopted by the Coordination Committee for Development Policy and was assessed as compliant with the Medium-term National Development Strategy by the Minister of Infrastructure and Development.

4 Evaluation Centre, Analiza projektu Krajowego Programu Rozwoju Ekonomii Społecznej na lata 2014–2020. Raport z badania, Warsaw, 10 July 2013.5 Ibidem, p. 48.6Ibidem, p. 50.

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Chapter ISocial Economy DiagnosisThe definition of the term “social economy”, also referred to as solidarity economy, is ambiguous and remains the subject of discussions among experts, theoreticians and practitioners of the topic. From the legal and institutional point of view, what constitutes the social economy is its legal and organizational form. From the normative point of view, this category is defined by common features and principles of functioning that identify various entities operating within the social economy. The principles distinguishing social economy entities from others are: 7

the precedence of providing services to the members of community over profit; autonomous management; a democratic decision making process; the precedence of people and labour over capital in terms of profit distribution.

The criterion of rooting the Programme in values and principles was consciously displayed in the Social Economy Manifesto of June 2008. The Manifesto also indicates that solidarity is one of the binding agents attributed to the social economy which is legitimised in the constitutional social formula of market economy. According to the Manifesto, the social economy has no political affiliation. It is composed of universal elements which are important for different social options. This is a great advantage which makes it possible to ensure harmonious development while respecting the continuity of changes. The social economy does not force us to choose between freedom and solidarity, but shows that true solidarity comes from liberty and it cannot be arbitrarily imposed.

When discussing the development of the social economy in Poland, it is important to refer to its historical background and its advocates: Stanisław Staszic, priest Piotr Wawrzyniak, Edward Abramowski, priest Wacław Bliziński, Maria Orsetti, Stefan Żeromski, Stanisław Wojciechowski, Teodor Toeplitz, Franciszek Stefczyk, Romuald Mielczarski, Maria Dąbrowska, Jan Wolski, Stanisław Thugutt. As the authors of recommendations for the development of the Polish model declared, the social economy is an idea which, despite its numerous definitions, arouses great, often very different expectations. Some people see it as a world-saving concept, others as a mechanism of social policy reforms, an effective way of building social cohesion or a method of solving problems of particular people or social groups 8.

At present, the social economy, as a dynamic management area included in the main public policy movement, is and will remain the subject of theoretical discussions, and will be taken into account during practical evaluation of model solutions, including those offered in KPRES.

The social economy may surely become a significant part of the European Social Model and Polish social policy. Naturally, it will not solve all social and economic problems, but it may play an important role in the new social integration policy, i.e. the process under which entities, environments and communities at risk of poverty and exclusion are given opportunities, possibilities and resources necessary for full participation in the economic, social and cultural life to reach a decent standard of living.

7 Jacques Defourny, Patrick Develtere, Ekonomia społeczna. Światowy trzeci sektor, [in:] Trzeci sektor dla zaawansowanych. Współczesne teorie trzeciego sektora – wybór tekstów, Stowarzyszenie Klon/Jawor, Warsaw 2006.8 Piotr Frączak, Jan Jakub Wygański [ed.], Polski model ekonomii społecznej – rekomendacje dla rozwoju, Foundation for Social and Economic Initiatives, Warsaw 2008.

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Objectives, values and traditions

However, we must remember, that activities undertaken by entities in the SE sector have a much broader context:

they are incorporated in the idea of building participatory democracy and social capital through a new vision of social governance and integration of local communities. We can analyse the role of the social economy on two levels: on the individual level, where employment allows social enterprise employees to improve their social skills, expand their contact network and enter new interactions, which enables them to build their own and the enterprise’s social capital. It should be noted that according to a CBOS survey conducted in February 2012, more than a half of the respondents (55%) stated that they did not know anyone to run a business with. At the same time, two fifths of the respondents (40%) declared that they were ready to undertake such cooperation9. The second level of the analysis is the social level as the activities of social enterprises may tighten the relations between local structures, contribute to creation of a civic society and increase citizens’ confidence in public institutions;

they may participate the employment growth policy by filling the area of local social services and allowing representatives of groups particularly vulnerable on the labour market to find employment. By creating jobs and adopting a creative approach to the activation and support of people in difficult situation, social economy entities and enterprises create a real opportunity to ensure such people’s permanent activation, allow them to gain independence, and ensure as social and professional activation. Employment in a social enterprise may turn the currently passive clients of social welfare institutions into partners who actively strive to improve lives. In this respect, we can distinguish two types of social entities and enterprises: those oriented at integration and those oriented at services within the area of public benefit;

they are an important instrument of social integration; thanks to professional activation, the effects of employment in the social economy sector increase the employees’ quality of life, empower them and give them an opportunity to satisfy higher needs. Within the context of social integration, the employment effect allows a better use of local resources, enhances competitiveness of local economy and creates cohesion in the local social governance. In terms of employment and integration, social economy entities may result in creating a practice of delivering services of public interest which satisfy important needs that cannot be satisfied by the members of local communities themselves;

they are also an instrument of local community development, which provides the citizens with affordable services of general interest. Social economy entities may contribute to the mobilisation of local resources, enhance the competitiveness of local economy by developing a cooperation network, lowering the costs of running a business activity, delivering goods and services to local entrepreneurs and community. An analysis of the basic functions of social economy entities and social enterprises indicates that social economy entities and social enterprises, embedded in a network of local partnerships and agreements, may become an effective instrument which will initiate and support local development and rationally use the resources available at the local level; social economy entities and social enterprises in a stable financial situation may create a real opportunity for people at risk of social exclusion to enter the labour market and improve the standard of living. Moreover, by providing socially useful goods and services, they may impact the quality of life in local communities and, at the same time, increase the level of social capital.

Activities under the coordinated public, policy which is implemented in relation to strategic programming, require a new opening by defining the key terms, clearly localising the context of such activities in the European Social Model, drawing conclusions based on the current state of affairs and precisely describing the objectives, results and directions of public intervention. All these elements are reflected in the National Programme for Social Economy Development.

9 CBOS, Gotowość Polaków do współpracy w latach 2002–2012, Communication BS/19/2012.

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Benefits from the social economy

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Context of Europe 2020 Strategy

There are no doubts that in the perspective of programmes until 2020, the social economy and social enterprises have gained new dynamics and created solid foundations for the use the opportunity to develop.

The primary priorities of Europe 202010 dated March 2010 include development conducive to social inclusion – supporting high-employment economy, delivering social and territorial cohesion.

This objective will be fulfilled by two flagship initiatives: the agenda for new skills and jobs and the European platform against poverty.

Communication from the European Commission The European Platform against Poverty and Social Exclusion: a European framework for social and territorial cohesion 11 dated December 2010 indicates that the platform is the EU’s contribution to solving these problems under Europe 2020. The Commission outlined the following areas of action:

implementation of activities which mobilise all policy fields, more intensive and effective use of the EU funds in order to support social inclusion; promoting evidence-based social innovation; partnership cooperation and use of the social economy’s potential; enhanced political coordination among Member States.

Within the scope of using the social economy’s potential, it was established that the Commission would support the development of the social economy as an active inclusion tool by proposing measures to improve the quality of legal structures relating to foundations, mutual societies and cooperatives operating in the European context, proposing "Social Business Initiative" in 2011 and facilitating access to relevant EU financing programmes.

A similar announcement was made in Communication of the European Commission – Towards a Single Market Act. For a highly competitive social market economy 50 proposals for improving our work, business and exchanges with one another12 dated October 2010. Among new measures contributing to the development of the social market economy, the document outlined proposal 36 which stipulated that in 2011 the Commission would present a social business initiative proposal.

In October 2011, the European Commission announced Communication Social Business Initiative13, which presented a short-term action plan intended to support social enterprises, key social economy and innovation entities, and discussed the directions of analysis in the medium- and short-term perspective. The action plan indicated the following actions were required:

10 Communication from the Commission Europe 2020 A strategy for smart, sustainable and inclusive growth, COM(2010) 2020, final version dated 3 March 2010.11 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions The European Platform against Poverty and Social Exclusion: A European framework for social and territorial cohesion, COM(2010) 758, final version dated 16 December 2010.12 Communication from the Commission to the European Parliament, the Council, the Economic And Social Committee and the Committee of the Regions Towards a Single Market Act. For a highly competitive social market economy 50 proposals for improving our work, business and exchanges with one another. COM(2010) 608, final version dated 27 October 2010.13 Communication from the Commission Social Business Initiative Creating a favourable climate for social enterprises, key stakeholders in the social economy and innovation, COM(2011) 682, final version dated 25 October 2011.

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Europe 2020: An impulse to development

improving the access to financing by facilitating the access to private financing and mobilisation of European funds;

increasing the visibility of social entrepreneurship by developing tools to gain a better understanding of the sector and increase the visibility of social entrepreneurship, reinforcing managerial capacities, professionalism and creating a social business network;

improving the legal environment by developing appropriate European legal forms adjusted to the needs of European social entrepreneurship, public procurement and state aid.

Another significant impulse towards the development of the social economy appeared in 2012 in the Statement of the Members of the European Council of 30 January 2012 Towards Growth-Friendly Consolidation and Job-Friendly Growth14. This document announced that the EU would support the efforts to increase the supply of jobs and decrease the unemployment rate among young people by, among others, using the ESF to support the drafting of apprenticeship programmes and support programmes targeted at young business starters and social entrepreneurs.

Consequently, Communication of the European Commission Towards a job-rich recovery15 dated 18 April 2012, in the part about job creation, indicated that (among others) social economy entities and social enterprises are important factors driving job generation and social innovations conducive to social inclusion. In the part about using of the job-creation potential in key economy sectors, the authors considered jobs in green economy and employment in health care and social services sector.

On 9 January 2013, the European Commission presented a new communication entitled: Entrepreneurship 2020 Action Plan. Reigniting the entrepreneurial spirit in Europe16, in which it was indicated that efforts should be made in order to make the idea of being an entrepreneur attractive to the Europeans. The above also refers to social entrepreneurs whose potential is often undermined. It was expressly stated that they create sustainable jobs and show a greater resistance to the crisis than the economy in general. Social entrepreneurs are innovators, they are the driver of social inclusion and contribute to the achievement of the objectives set forth in Europe 2020. According to the above-mentioned document, Member States will be asked to consider a greater variety of business models and legal statutes in their national and local enterprise support systems and to draft programmes on education and training in social entrepreneurship.

Moreover, Communication from the Commission Towards Social Investment for Growth and Cohesion – including implementing the European Social Fund 2014-2020 17 dated 20 February 2013 indicates that the resources devoted to social policy are not only from the public sector. Social services are also commonly provided by non-profit organizations. The services cover homeless shelters, support for elderly and disabled people and social benefit consultancy centres. The activities of the public sector may be supplemented by the activities or social enterprises, which can become pioneers on new markets. Considering the above, the Commission called Member States to (among others) support social entrepreneurs by developing incentives for new enterprises and to support their further development by expanding their knowledge and contact networks, and ensuring they are in a favourable regulatory environment, in accordance with the Social Business Initiative and the Entrepreneurship 2020 Action Plan. All these elements are a clear signal from the EU which

14 http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/PL/ec/127601.pdf.15 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Towards a job-rich recovery. COM(2012) 173, final version dated 18 April 2012.16 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Entrepreneurship 2020 Action Plan . Reigniting the entrepreneurial spirit in Europe, COM(2012) 795 dated 9 January 2013 17 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Towards Social Investment for Growth and Cohesion – including implementing the European Social Fund 2014-2020, COM(2013) 83, final version dated 20 February 2013.

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points out the need to provide systemic support to reinforce and develop the social economy as an instrument supporting social integration and services of general interest.

The context of the national strategic programming

Pursuant to the provisions of the National Programme for Social Economy Development, in 2020, the social economy will be an important element of public policies, contributing to the increase of employment, social cohesion and development of social capital. This is the primary objective of the social economy support policy. This means that the development of the social economy contributes to the fulfilment of key national development objectives formulated in other strategic documents.

The National Programme for Social Economy Development is drafted in a specific strategic context. The basic point of reference in terms of documentation is the Long-term National Development Strategy – Poland 2030. Third Wave of Modernity, National Development Strategy 2020 and nine integrated horizontal strategies.

The strategic objective indicated in the Long-term National Development Strategy, pillar Innovation, under priority Human Capital, is achieving welfare through work by supporting educational and professional activities and increasing general access to public services at every life stage.

Considering that the support must reach groups of people who really need it and that the support system based of social services, including the social economy, must be developed, operational objective 3.1 Reviewing the Benefit System was included in the objective Improvement of Social Cohesion. The development of the

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A priority in Polish strategic thinking

Long-term National Development Strategy – Poland 2030 Third Wave of Modernity

National Development Strategy 2020Active society, competitive economy, efficient state

Other strategies

Efficient state

strategy

Strategy for economy

innovation and efficiency

Strategy for development of

social capital

Strategy For Development Of Human Capital

National Strategy of Regional

Development

Enterprise Development Programme by 2020

National Programme for Social Economy Development

National Programme for Combating Poverty and Social

Exclusion 2020.

social economy is also provided for in the National Development Strategy 202018. Particular importance is assigned to Strategic Area III Social and territorial cohesion where the social economy is represented in all objectives.

Objective 2 of the National Strategy of Regional Development19, Establishment of the territorial cohesion and preventing the processes of marginalisation of problem areas – preventing social exclusion provides for limiting poverty, especially among children and elderly people, implementation of social integration programmes, development of social economy activities, including social economy enterprises which improve social integration, improve or supplement public services and develop local communities.

The institutional basis for the development of the National Programme for Social Economy Development is the description of activity Supporting the development of social entrepreneurship and other forms of preventing social and professional exclusion, including various forms of self-support (in Priority Improvement of social integration and solidarity for Objective 2: Improvement of social participation mechanisms and citizens’ impact on public life) presented in the Social Capital Development Strategy20. This description provides that the social economy is an innovative instrument which improves social and professional integration of socially excluded people and strengthens the social capital. Social economy entities satisfy the need for employment of disadvantaged people and supplement the delivery of goods and services by the market and the state, and solve various social problems existing in numerous areas of social life.

The strategy referred to above lists the following issues as the most important for the development of the social economy:

inclusion of local governments units at the voivodship level, which support regional and local development, as a key entity within the scope of programming, support and development of social entrepreneurship in voivodships, and implementation of systemic solutions which allow accredited institutions, providing infrastructural support to social entrepreneurship (Social Economy Support Centre), to operate as a civil-public partnership in the field of services, training and consultancy;

adopting the National Programme for Social Economy Development (KPRES) which localises the social economy in the context of integrated strategies and presents its vision in which social enterprises are a permanent and visible entity in the social and economic life in the local and regional dimension;

adopting the act on social entrepreneurship which will allow people to apply for the status of a social entrepreneur; this status will confirm that by running its business, a given entity fulfils particular social objectives;

drafting and carrying out educational activities focused on the social economy to educate (among others) children and youth about how to prepare to become an entrepreneur and to suppot pupils’ cooperatives;

preparing and implementing repayable financing systems (loans, credits and guarantees) for social entrepreneurs;

drafting and implementing effective tools to measure the social added value generated by social enterprises and other economic undertakings which fulfil social objectives; this is necessary to rationally and effectively distribute public funds in the area of social entrepreneurship;

18 Resolution of the Council of Ministers no. 157 dated 25 September 2012 on adopting the National development Strategy 2020 (M.P. item 882).19 National Strategy of Regional Development 2010–2020: Regions, Cities, Rural Areas. The document adopted by the Council of Ministers

on 13 July 2010.20 Resolution no. of the Council of Ministers dated 26 March 2013 on adopting “Social Capital Development Strategy” (M.P. item. 378).

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Social Capital Development Strategy

constantly searching for innovative solutions and mechanisms preventing social and occupational exclusion. In order to achieve this, it is necessary to support projects testing new solutions and popularise solutions which prove to be effective and useful.

It was announced that all undertakings under Objective 2 will be based on MPiPS’s experience in supporting activities under OP HC and OP FIO. In the following financial perspective (after 2013), the functioning of Civic Initiative Funds, which are the substantial and financial formula of building a civil society as an integral part of the social capital, will be prolonged.

The National Reform Programme for the Implementation of the Europe 2020 Strategy. Update 2014/2015 (KPR 2013/2014)21 significantly supports the strategy implementation in terms of the participation in European structures. The document states that the National Programme for Social Economy Development will be adopted, the pilot loan fund will be continued and anticipates activities intended to implement the system for accreditation and operational standards for social economy support institutions.

21 National Reform Programme Strategy Europe 2020. Update 2014/2015 (KPR 2014/2015). Adopted by the Council of Ministers on 22 April 2014.

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Definition of the social economy and social enterpriseBy way of works conducted by the Team and discussions held by civic organisations, a Polish definition of the social economy was established.

Social economy is an area of civic activity which, by means of economic and public interest activities, contributes to: professional and social integration of persons at risk of social marginalisation, job creation, provision of social services of general interest and local development22.

According to the above definition, social economy entities operating within the social economy can be grouped into four main categories:

social enterprises, which constitute the foundation of the social economy;

reintegration entities which support social and professional reintegration of people at risk of social exclusion, i.e. Vocational Activity Establishments, Occupational Therapy Workshops, Social Integration Centres and Social Integration Clubs; these organisational forms will never be social enterprises, but they might prepare people to run a social enterprise or work in a social enterprise, or they might be run as a service for local community by social enterprises;

public benefit purpose entities, which run a business activity and employ people, although their activity is not based on the economic market. Public benefit purpose entities are non-governmental organizations carrying out chargeable and free public benefit activities; these entities may become social enterprises, provided that they undertake full economic activity and fulfil their statutory tasks in relation to profit distribution;

economic actors which were established to fulfil a social objective or a social objective of common interest underlies their commercial activity. These entities do not display all the features of a social enterprise. This group may be divided into four sub-groups:

o non-governmental organisations conducting an economic activity, the profits from which are used to support their statutory tasks; Vocational Activity Establishments23;o cooperatives targeted at employment;o other cooperatives of consumer and mutual nature.

22 Term social services of general interest, used in European nomenclature is translated as usługi społeczne interesu ogólnego or usługi społeczne użyteczności publicznej. The Programme uses the term usługi społeczne użyteczności publicznej as it is closer to Polish legal standards,23 Vocational Activity Establishments are included in two categories (reintegration entities and the economic area) due to their hybrid nature recognised in Decision EC K(2007)3050 dated 27 June 2007 and in Polish law [(Article 29 and Article . 68c sec. 2 of the Act on Professional and Social Rehabilitation and Employment Of Disabled People dated 27 August 1997 (Polish Journal of Laws/Dz. U. of 2011 no. 127, item 721, as amended.); act amending the Act on Professional and Social Rehabilitation and Employment Of Disabled and Other Acts dated 29 October 2010 (Polish Journal of Laws/Dz. U no. 226, item 1475, as amended); Article . 38 sec. 2 item 2 of the act on personal income tax dated 26 July 1991 (Polish Journal of Laws/Dz. U. of 2010 no. 51, item 307, as amended.); Regulation of the Minister of Labour and Social Policy on Vocational Activity Establishments dated 17 July 2012 (Polish Journal of Laws/Dz. U. item 850)], and European legislation (e.g. Declaration on the rights of disabled persons, item 7).

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Fig. 1. Social economy entities and social enterprises.

Non-formal initiatives, which are becoming more and more popular, are a separate, fifth group within the framework of the social economy. They include (among others), the emerging consumer cooperative movement – such cooperatives are already operating in Białystok (two), Gdańsk, Krakow (two), Lublin, Łódź, Poznań, Warsaw (two) and Wrocław, other undertakings within the framework of mutuals, “shared economy” and various city, tenants and neighbours’ movements. The situation of pupils’ cooperatives is very similar. In 2011, there were about 5 thousand pupils’ cooperatives in Poland. Although such cooperatives are not formal organizations, they may constitute, and often do constitute, an important basis of the social economy development.

Social enterprises have features common for entities from other groups, but the most important characteristics have been listed below:

a social enterprise is an entity conducting economic activities, distinguished in terms of organisation and accounting;

the aim of their economic activity is social and professional integration of people at risk of social exclusion (in this case, employment of at least 50% of people from groups at risk of social exclusion or 30% of people with moderate or severe disability is required) or provision of social services of general interest; at the same time, they fulfil pro-employment objectives (employment of at least 20% of people from certain groups at risk of social exclusion);

they do not distribute profit or balance surplus among the shareholders. Instead, that money is used to strengthen the enterprise’s potential as indivisible capital and a certain part of the capital is used

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Social cooperatives

Social enterprises

Informal area / mutual services

Reintegration entities

Entities operating in the public benefit area, about 77 thousand entities, 123 thousand employed

including: entities operating in the public benefit area

which conduct an economic activity (about 9 thousand)

Consumer cooperativesProducer cooperatives

Worker cooperatives

about 15.2 thousand265.9 thousand employed

Definition of a social enterprise

for professional and social reintegration (in the case of employment-targeted enterprises) or for public benefit activity conducted in favour of the local community in which the enterprise operates;

they are managed in accordance with democratic principles or, at least, consultancy principles with the participation of employees and other interested parties; the remuneration of the managerial staff is limited.

The status of a social enterprise will be obtained under regulations on social enterprises by receiving a relevant entry into the National Court Register.

Degree of development of social economy

The most important groups of social economy entities are civic organizations conducting their economic activity for public benefit, and cooperatives.

Civic sectorPursuant to the REGON Business Registry as of 31st December 2011, the civic sector entails 89 888 associations and 12 763 foundations, 14 271 organisational units of the Catholic Church, 1508 units of other churches and religious organisations, 3784 social organisations not listed elsewhere, 19 175 labour unions, 5801 economic and occupational self-government organizations, 244 political parties and 371 employers’ organisations. This adds up to a total of 147 805 registered entities24.

Research conducted in 2011 by the Central Statistical Office of Poland, SOF-1 and SOF-4, indicate that in 2010 there were 80.4 thousand organisations, including 67.9 thousand associations and similar social organisations, 7.1 thousand foundations, 3.6 thousand economic self-government organisations and 1.8 thousand social religious entities. The membership base of civic organisations contains about 9 million people. Every tenth third-sector organisation covered by the research, i.e. 7.3 thousand organisations, had the status of a public benefit organisation (PBO). 32.2 thousand out of 67.9 thousand associations and similar organisations are typical associations and social organisations, 18.4 thousand are physical culture associations and sports unions, 14.8 thousand are volunteer fire brigades and 2.5 thousand – hunting clubs25. In 2005–2010, the number of active associations, similar social organisations and foundations increased by 22%, their revenue increased by 108%, but the membership base shrank by 18%.

In 2005–2010, the number of third-sector organisations increased by 19%, their revenue increased by as much as 186% and the membership base shrank by 20%.

The research (covering both registered organisations and active organisations surveyed by GUS) show a great territorial diversity in the functioning of civic organisations. Mazowieckie Voivodship with Warsaw is clearly dominant in this respect. According to GUS, 15.5% of the organisations originate from this region, while 8.1% all organisations originate from Warsaw itself (34.6% of all foundations). High share of such organisations is also attributed to Wielkopolskie (10%) and Małopolskie Voivodship (9.1%).

24 Data according to: Sprawozdanie z funkcjonowania ustawy o działalności pożytku publicznego i o wolontariacie za lata 2010 i 2011, MPiPS, Warszawa 2012, pp. 9-12; http://www.pozytek.gov.pl/files/pozytek/sprawozdanie_z_ustawy/sprawozdanie_06_09_2012.pdf. To compare, pursuant to the National Court Register as at 31 December 2011, the register of associations, other social and professional organisations, foundations and public healthcare centres under KRS contained: 62 795 associations, 12 783 foundations, 520 crafts organisations, 4477 socio-occupational farmers’ organisations, 12 labour unions of individual farmers, 128 units of occupational self-governments and other entrepreneur, 37 other entrepreneur organisations, 377 chambers of commerce, 7712 labour unions, 424 employers’ organisations, 6675 associations of physical culture and sports unions, 90 other social or professional associations, 532 legal persons and other organizational units being public benefit organizations, which added up to a total of 96 562 entities.25 Trzeci sektor w Polsce. Stowarzyszenia, fundacje, społeczne podmioty wyznaniowe. Samorząd zawodowy i gospodarczy oraz organizacje pracodawców w 2010 r., GUS, Warsaw 2013; http://www.stat.gov.pl/cps/rde/xbcr/gus/GS_stow_fund_i_spol_podm_wyz_2010.pdf.

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Civic sector in Poland

In Poland, there is 20.9 third-sector entities per 10 thousand people on average. The greatest availability and share of organisations is attributed to the central and eastern regions of Poland with 22.5 entities per 10 thousand inhabitants, while in the southern region of Poland (which ranked as third in terms of the number of organisations) the number of organisations per 10 thousand people was the lowest, i.e. 18. In Lubelskie, Mazowieckie, Podkarpackie and Wielkopolskie Voivodships, the number of organisations per 10 thousand people was the highest: from 23.3 to 23.7 entities, with the lowest number being attributed to Śląskie Voivodship (15.1 entities).

At the end of 2010, a total of 132.5 people had an employment contract signed with a third-sector organisation. For 111.8 thousand employees, these organisations were the main workplace. In 2008, the number of people employed in this sector was 70.8 thousand (including 60.2 for whom organisations were the main workplace, which indicates high dynamics of growth within the past two years).

In 2010, 62% of organisations did not employ any paid staff; 22% of them offered only civil law contracts, and only 16% of organisations had salary employees (and, at the same time, employed other people on the basis of civil law contracts).

Although the average number of salary employees in organisations was 10, half of these organisations did not employ more than 3 people. However, Klon/Jawor research indicates that every fifth organisation (19%) has salary employees (working part- or full-time) and 21% of organisations cooperate with people on a regular basis (at least once a month) against payment, but without signing employment contracts with them. Sometimes, such cooperation is not much different from salary employment. Declarations on the number of worked hours allow us to estimate that only about 6% of organisations employed people for 5 and more full-time equivalents. Therefore, paid employment only supports the social engagement of members and volunteers26.

NGOs running an economic activity are an important actor which can potentially create social enterprises on the social economy arena. At the end of 2010, registered economic activity was being conducted by 7.24 thousand foundations, associations, similar social organisations and social units of the Catholic Church covered by the GUS survey. The conducted study showed that only a half of these organisations (52%) was actually conducting an economic activity, while the remaining part had temporarily suspended or ceased such activity without applying for cancelation of the entry to the registry, or hadn’t even started their economic activity. Nevertheless, the data presented above show the scale of the phenomenon.

There are, however, no aggregate statistics on non-profit companies operating as social enterprises. It is estimated that there are about 20–30 of such companies is Poland, but there is no official register of such entities.

Cooperative sectorCooperatives play an important role in the social and economic development of Poland and significantly impact the living conditions of Poles. Thanks to their specific system of functioning, cooperatives diversify the economic system, enrich the market and support its sustainable functioning. Cooperative organisations have numerous advantages which, in certain conditions, may become very helpful for the state and the society. These include the ability to provide stable employment, which has been confirmed by European research which covered (among others) Poland27. The support for this sector is particularly important due to the positive function of cooperatives in terms of employing people disadvantaged on the open labour market. The share of disabled people in the total number of cooperative employees is 3 times greater than in the entire national economy (11.6% in comparison to 3.6%). 59% of cooperative employees are women (which is 14 percentage point more than the share of women employed in national economy). Moreover, cooperatives

26 „Życie codzienne organizacji pozarządowych w Polsce”, Klon/Jawor, Warszawa 2012, p. 26.27 See: Bruno Roelants Diana Dovgan, Hyungsik Eum and Elisa Terrasi, The resilience of the cooperative model, Brussels 2012.

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Condition of cooperatives in Poland

provide long-term employment for people at the immobile or retirement age (53% to 36%), and employ less educated people (78% to 68.3%) (Międzyresortowy raport o spółdzielczości polskiej [Interministerial Report on Polish Cooperatives], 2010). These data are crucial in the context of raising the retirement age and winding-up of cooperatives causing the inflow of people at greatest risk of social exclusion to the labour market.

The Polish cooperative sector comprises almost 17 thousand of cooperatives registered in the REGON system. According to the calculations of the National Cooperative Council, almost 9 thousand of cooperatives are active economic entities. They associate more than 8 million members and provide employment to about 400 thousand employees, including 265.9 thousand people working in cooperatives which employ 10 or more people28. This sector is extremely diversified. Most of the cooperatives functioning today were established before 1989 (62%). According to REGON, the number of registered cooperatives in 2006–2012 dropped from 18 200 to 17 15329.

One of the important groups of cooperatives from the KPRES perspective is the group targeted at employment. It comprises traditional worker cooperatives, cooperatives of disabled and blind people, folk handicraft cooperatives “Cepelia” and social cooperatives (which are discussed separately). According to the data of 1 March 201230, 648 active worker cooperatives 224 cooperatives of disabled and blind people and 9 folk handicraft cooperatives were operating in Poland, which adds up to 881 active economic entities. The highest number of worker cooperatives is associated in the National Auditing Union of Workers’ Cooperatives (more than 200 entities). The second largest association is the Cooperative Revision Union “Wspólnota Pracy” which associates 84 cooperatives. Cooperative Revision Union “Cepelia” associated 18 cooperatives and the Polish Craft Association declares that, together with chambers of crafts, it associates 168 cooperatives31. Cooperatives serving a non-employment function employ about 60 thousand people, including 45 thousand of cooperative members32.

An interesting form in the cooperative sector are pupils’ cooperatives. Statistics provided by the Foundation for the Development of Pupils' Cooperatives list as many as 5 thousand of such entities, however, we still lack detailed data. Pupils’ cooperatives, which are often supported by cooperative banks, worker cooperatives or consumer cooperative “Społem”, are a practical way of teaching pupils socially-responsible entrepreneurial attitude.

Social cooperativesThe most popular new type of a cooperative in Poland is social cooperative. These enterprises function pursuant to the Act on Social Cooperatives dated 2006, which indicates that the main objective of cooperatives is bringing people at risk of social exclusion and people of low employability back to the labour market by running a common enterprise, and to allow professional activation of the unemployed. This created a new type of a legal entity which is not only targeted at running an economic activity, but also at acting in favour of social and occupational reintegration of cooperative members.

As provided by the Polish National Union of Co-operatives, at the end of 2012 there were 601 cooperatives of this type registered in the National Court Register; at the end of 2013 this number reached 850 and at the end of the first quarter of 2014, more than 1 thousand of social cooperatives were registered in the National Court Register. However, it is difficult to establish how many of these cooperatives are actually operating. Research

28 Rocznik Statystyczny Rzeczypospolitej Polskiej 2012, GUS, Warszawa 2012, p. 228.29 Zmiany strukturalne grup podmiotów gospodarki narodowej w rejestrze REGON, 2012, Warszawa 2013, p. 37.30 Materials from 5th Cooperative Congress, National Cooperative Council, Warsaw27 and 28 November 2012, p. 55. 31 Data based on: http://www.zrp.pl.32 Raport o spółdzielczości polskiej [Report on Polish Cooperatives]. Document adopted by the Inter-ministerial team on 19 January 2010.

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results indicate that some of the cooperatives ceased business activity, although they have never been formally deregistered33.

According to research results obtained in 2010, 83% of social cooperatives covered by the research were established by unemployed people and 38.4% employed at least one disabled person. In 2010, a vast majority of the researched cooperatives were small entities comprising 5–9 members. Only 10% of the cooperatives had 10 or more members. More than a third of the researched cooperatives employed additional employees who were not their members.

Reintegration entitiesAccording to MPiPS, in 2012, there were 92 Social Integration Centres, including 68 centres established by civic organisations. According to the data for 2012, the number of beneficiaries of these centres added up to about 5.4 thousand people from socially excluded groups. Classes on social and professional integration were most frequently attended by people suffering from long-term unemployment, who constituted 69% of all CIS. About 10% of the beneficiaries use the support for the disabled 34. Moreover, 69 Vocational Activity Establishments, including 43 established by civic organisations employing 3 523 people, 2 651 of which are disabled, were operating in 201235.

In 2012, poviat governments used their own funds and funds from the State Fund for Rehabilitation of Disabled Persons (PFRON) to cover the costs of participation of 24.3 thousand of disabled person in 672 Occupational Therapy Workshops, including 125 workshops organized by a public finance sector unit and 520 workshops organised at units from outside the public finance sector, and 28 workshops at Sheltered Work Enterprises 36. In 2010, 286 Social Integration Clubs were functioning, 223 of which actually run a business activity37.

There is also the unexplored area of unofficial activities which encompasses initiatives targeted at survival or lowering one’s subsistence expenses, self-assistance, assisting other people in a difficult economic situation or assistance of economic nature, common management supporting the fulfilment of objectives of a given group or society (implementation of projects, learning, joint cultural activity). These initiatives refer to the value of the social economy, use social economy methods and organizational solutions.

Finances of the social economy sector

According to GUS, in 2011, the share of the cooperative sector in global production, i.e. in the total production of goods and services in all ownership sectors, was PLN 47.7 billion, which amounted to 1.5% of the total global production, whereas the share of non-commercial institutions38 amounted to PLN 24.6 billion, which is 0.8% of global

33 Research conducted in Wielkopolska shows that this is true for more than a third of cooperatives. Cf.: Joanna Kobielska, Obraz spółdzielni socjalnych w świetle badań przeprowadzonych w ramach projektu „Wykluczenie społeczne: diagnoza i mechanizmy przeciwdziałania w województwie wielkopolskim”, [in:] Spółdzielnie socjalne. Skuteczny mechanizm walki z wykluczeniem społecznym czy ślepa uliczka?, Collective work edited by Jacek Tittenbrun, Poznań 2010, p. 84, http://www.wykluczenie.spoldzielnie.org.34 Social Integration Centres, departments of professional activation and occupational therapy workshops in 2012, GUS, Warszawa, 29 November 2013.35 Data provided by the Office for Disabled People of MPiPS as on 31 December 2012.36 Information of the Government of the Republic of Poland on activities undertaken in 2010, aimed at implementing the provisions of Resolution of the Sejm of the Republic of Poland dated 1 August 1997. The Charter of Rights for Persons with Disabilities, Parliamentary document no. 46dated 8 December 2011, p. 58.37 Raport o działalności Klubów Integracji Społecznej w Polsce (data obtained by collecting 139 questionnaires in 13 voivodships), Department of Social Assistance and Integration of the Ministry of Labour and Social Policy, Warszawa, August 2011.38 According to GUS, the non-commercial institution sector encompasses: social organisations, political parties, labour union organisations, associations, foundations and units of religious associations; Third sector in Poland. Associations, foundations, social religious entities. Occupational and economic self-government and employers’ organisations in 2010,

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Integration and unoffical entities

Finances of the social economy

production in total. In 2011, the cooperative sector39 earned PLN 13.2 billion (0.9% GDP), while the non-commercial sector earned PLN 13.8 billion (also 0.9% GDP)40.

The cooperative sector is fully supported by market activities, but besides the financial (cooperative banks, savings and credit unions) and residential sectors, it does not have a significant share in the economy. Unfortunately, the last comprehensive studies of the cooperative sector were conducted in 2006 and 2008 41, which makes it difficult to deliver any information on the financial situation of cooperatives in 2011 and 2012. All we can do is state that the share of the discussed sector in the economy is decreasing42.Civic entities may finance their activities as activities which are free-of-charge, paid public benefit activities or within their economic activity. What is an important source of organisation’s income is fulfilment of public tasks pursuant to the Act of Public Finance. In the period from 2007–2012, civic sector organisations completed public tasks recommended by the public administration amounting to a total of PLN 19.1 billion, PLN 8.4 billion of which were tasks commissioned via open tenders pursuant to the Act on Public Benefit Activities and Voluntary Work, and PLN 10.7 billion were tasks commissioned under different procedures.

According to the above-mentioned GUS research, about 6.8 thousand (8%) of civic organisations declared that they conducted an economic activity. Average annual revenues from economic activity of those entities who had such revenue amounted to PLN 519 thousand, however, revenues of social religious units were usually three times higher than the average. In 2010, 22% of all organisations, i.e. 16.5 thousand entities obtained any revenue from paid statutory activity.

Support for the development of the social economy sector

Strengthening and expanding the scope of social economy activities is one of the objectives of Operational Programme Human Capital 2007–2013. Priority VII of the Programme – Promotion of social integration provides for Specific Objective 2: Strengthening and expanding the scope of social economy activities. The expected effects of such activities included:

assuring that institutions supporting social economy are functioning (at least two in every voivodship); 30% of own revenue of social economy entities in the general value of their revenue. Product indicators were supposed to be as follows: the number of institutions supporting the social economy which obtained support under the Priority; the number of social economy initiatives supported by ESF; the number of people who obtained support from social economy institutions43.

The Detailed Description of the Priorities of Human Capital Operational Programme 2007 - 2013 adopted on 13 March 2008, Priority VII, provides for Measure 7.2: Counteracting Exclusion and Strengthening the Social Economy Sector, which contained submeasure 7.2.2. directly relating to social economy support. The objective of this submeasure was to select, by way of a competition, institutions from the social economy environment

http://www.stat.gov.pl/cps/rde/xbcr/gus/GS_stow_fund_i_spol_podm_wyz_2010.pdf.

39 Excluding cooperatives with up to 9 members.40 Rocznik Statystyczny Rzeczypospolitej Polskiej 2012, GUS, Warszawa 2012, p. 682.41 Iwona Krysiak, Informacja o sektorze spółdzielczym w Polsce, ekonomia społeczna, Warszawa 2006; Sławomir Nałęcz, Joanna Konieczna, Sektor spółdzielczy – główny pracodawca gospodarki społecznej w Polsce [in:] Sławomir Nałęcz [ed.], Gospodarka społeczna w Polsce, ISP PAN, Warszawa 2008.42

43 Program Operacyjny Kapitał Ludzki, Warszawa, 7 September 2007, p. 188.

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Dedicated support balance

which offered services to social economy entities. This objective was assigned an amount of EUR 172 399 750, i.e. PLN 723 079 031 according to the exchange rate of 28 November 201344. At the end of 2013, 463 project grant agreements amounting to a total of PLN 649 680 008 were signed and payment applications for PLN 402 964 823 were filed45.

Table 1. Monitoring the OP HC value at the end of 2013.

Name of indicatorIncreasing under Priority VII

Target value

Progress in objective achievement

Product indicatorsNumber of social economy entities which obtained ESF support via an institution supporting the social economy 10 786 6801 159%

Number of people who obtained support from a social economy institution 144 456 33 216 435%

Number of social economy entities established thanks to the ESF support 343 300 114%Result indicatorsNumber of institutions supporting the social economy which obtained support under the Priority, which have been operating for at least 2 years after their participation in the project has ended.

32 44 73%

Source: MIiR

Moreover, under Priority I of OP HC, systemic projects, having a total budget of PLN 60 million, which supported the development of social economy have been implemented. The above indicates that considerable funds were provided to support the social economy.

According to the Managing Authority of OP HC, the tender selection procedures with insufficient use of such tools as selection criteria caused:

that in most regions, the number of established institutions supporting the social economy (the so-called Social Economy Support Centres) significantly exceeded the target values set forth in OP HC;

in many cases, particular Centres discontinue their activities due to the lack of ESF financing for further activities, which leave the potential established by these entities unutilised;

a significant number of Centres ceased their activities supporting social economy when the ESF financing stopped. According to the line of thought of ESF interventions, beneficiaries should ensure that the project implementation is continued after the EU financing has finished. However, very often OWES run by social economy sector entities, e.g. by NGOs, do not have sufficient resources to continue their activities without state support46.

In 2011, remedial measures were undertaken in response to the above. They were partially initiated by the Minister of Regional Development, and partially by the Team for Systemic Solutions in the field of Social Economy. In a document dated 20 July 2011, the Team applied to the Minister of Regional Development for introduction of specific tender criteria which would ensure the continuity of Social Economy Support Centres47. Activities towards ensuring such continuity were correlated with activities aimed at standardising the Centres set forth in systemic project “Integrated System of Social Economy Support”. However, it must be noticed that despite numerous accusations, the Centres performed a great amount of education and advisory work, which should be considered in a comprehensive support assessment.

44 After the changes implemented in 2011, the amount was EUR 172 399 750 euro. The amount was converted using the ECB exchange rate of 28 November 2013, EUR 1= PLN 4.1942.45 Progress of the implementation of the Human Capital Operational Programme as at 31 December 2013. More information available at: www.efs.gov.pl.46 Ministerstwo Rozwoju Regionalnego, Sprawozdanie z realizacji Programu Operacyjnego Kapitał Ludzki za II półrocze 2011 roku, p. 82.47 The document is available at www.ekonomiaspoleczna.pl, in the Team tab.

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Table 2. Implementation of the Operational Programme Human Capital within the scope of supporting the social economy at the end of 2012.

Civic sector Cooperative sector Reintegration sector

Type of support Total NGOsChurches, religious

organisations

Social cooperatives

Cooperatives of disabled and blind people

ZAZ KIS CIS OTW

Number of entities (institutions) which have received support 11 613 8 083 14 360 8 38 27 40 128

- including social economy entities 9 530 7 908 14 400 8 31 9 35 136

Number of established social economy partnerships 401 114 1 78 5 0 1 0 0

Number of consulting hours (individual, group, coaching) 96 487 35 391 20 8 965 6 352 457 20 22

5 292

Number of consultancy participants under Submeasure 7.2.2.

24 239 7 609 4 1 337 75 0 4 14 17

Number of provided training sessions which allow to obtain knowledge and skills necessary to establish and/or run a business activity in the social economy sector.

6 049 1 407 2 345 1 5 5 3 19

Number of people participating in training allowing to obtain knowledge and skills necessary to establish and/or run a business activity in the social economy sector.

27 479 10 086 8 1 048 27 18 24 27 68

Number of legal services delivered to social economy entities.

10 129 6 226 4 340 763 5 2 42 41

Number of accounting services delivered to social economy entities.

9 808 6 396 19 737 1 201 7 4 61 1

Number of marketing services delivered to social economy entities.

6 746 6 452 6 330 3 30 0 61 52

Number of social cooperatives established thanks to OWES’ support.

169 7 0 98 0 0 0 0 0

Source: Data delivered by OP HC Intermediate Bodies, collected from project providers. Data from outside of the OP HC reporting system.

According to the evaluation study ordered by the Ministry of Regional Development in 2013 48, social economy entities claimed that the support obtained under OP HC projects was well adjusted to their needs. The variations between assessments of particular types of PES were minor: the support was most highly rated by worker cooperatives, cooperatives of disabled people and non-profit companies, while the lowest, however, still positive rating was assigned by ZAZ, OTW and social cooperatives of legal and natural persons.

The percentage of PES which employed new people within 12 months as of using the support varies in different regions. In six voivodships, it did not exceed 10%, in five regions it ranged between 10% and 15% and in the next five regions it amounted to 15%49.

48 Evaluation study entitiled Ocena wsparcia w obszarze ekonomii społecznej udzielonego ze środków EFS w ramach PO KL, Coffey International Development for the Ministry of Regional Development, Warszawa 2013.49 Ibidem, p. 90.

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Fig. 2. Assessment of whether the support received from OP HC was adjusted to particular types of entities (average rating scale: 1 – completely not adjusted, 5 – fully adjusted, n=482).

Source: Evaluation study entited Ocena wsparcia w obszarze ekonomii społecznej udzielonego ze środków EFS w ramach PO KL, Coffey International Development for the Ministry of Regional Development, Warszawa 2013.

As it was recommended in the report, it is necessary to adopt solutions regarding the shape of the social economy support system. This particularly refers to clear assignment of responsibilities for the development and functioning of the support system to voivodship governments. Moreover, the relations between OWES, the labour market and social assistance institutions must be defined to allow cooperation of the above-mentioned institutions (ordering services from OWES by PUP and OPS).

Furthermore, the principles of financing OWES’s services must be defined as well. Partial self-financing of OWES may be taken into account. However, to achieve this, systemic solutions must be adopted and uniformly applied within the entire social economy support system. At least two options should be considered:

collecting charges for services delivered to operating PES;

or requiring PES to pay small contributions (e.g. 3% of the revenue) to the Chamber (yet to be established), provided that this money is used to finance the support system.

The report also recommends that repayable instruments addressed to the functioning PES be activated to a greater extent. The study indicates that grants for starting an economic activity in the form of a social enterprise should be allowed to entities other than social cooperatives (NGOs and non-profit companies), which, at present, are the only type of entity allowed such grants.

The recommendations also suggest that the works on the accreditation system should be continued. Accreditation should be primarily focused on assuring high quality of services and stimulating the process of improvement within the system. More attention should be paid to such quality aspects of offered services as methods of diagnosing clients’ needs, methods of cooperating with clients or methods of monitoring what happens to the clients later. Quality assurance mechanisms for OWES should be activates as fast as possible, so that it is possible to implement them before commencing interventions under ROP.

As the report further indicates, permanent OWES should offer services (partially free, partially paid services) to functioning PES which are experiencing problems, wishing to develop or which need specialised services that are unavailable on the market (e.g. PES accounting services, as PES accounting differs from third sector or market entities’ accounting). One of the tasks of the support system, as set forth in the evaluation report, should be facilitating access to the market for PES.

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NGOs which do not conduct an economic activity or paid activities [n=319]

social cooperatives of natural and legal persons [n=14]

non-profit companies, worker cooperatives, cooperatives of disabled

and blind people [n=12]

ZAZ, OTW [N=33]

NGO conducing an economic activity or paid statutory activity [n=57]

average

This objective may be achieved by:

improving the quality of business consultancy for potential and already functioning PES (close cooperation within the scope of developing business plans);

promoting proven business solutions and models which turned out to be effective; offering special support for their replication and popularisation in Poland;

encouraging self-governments to increase the number of orders from social economy sectors, especially within areas in which such enterprises can deliver social benefits (social and educational services, and environment protection).

Support for the creation of jobs in the social economy sectorIn 2007–2012, the support for job creation was actually offered for one type of a social enterprise, namely social cooperatives. Naturally, jobs might have been created also in the civic sector. According to the survey conducted by GUS in 2010, thanks to the participation of organisations in projects financed from the European Social Fund, 2.6 thousand jobs were created and 2.5 thousand jobs were maintained50. However, these were project funds which were not directly related to the dedicated creation of jobs of economic nature. Social cooperatives received support from both state funds and the ESF.

The state support resulted from the Act on Promotion of Employment and Labour Market Institutions of 2004. People interested in starting a business in the form of a social cooperative can apply for one-off funding from the Labour Fund in the amount not exceeding the amount of average remuneration of each founding member of the social cooperative multiplied by four (on 1 March 2013, it amounted to PLN 14 761.20) and the average remuneration of each member joining an existing social cooperative multiplied by three (on 1 March 2013, it amounted to PLN 11 070.90). In the period from 2007–2013, poviat employment agencies granted such support to 733 unemployed, providing PLN 8 million for this purpose.

Table 3. The amount of support granted to social cooperatives from the Labour Fund in 2005–2013.

Year 2007 2008 2009 2010 2011 2012 2013 Amount of support in PLN 705 700.00 366 700.00 839 800.00 2 135 900.00 819 600.00 1 759 300.00 1 423 100.00

Number of people who were granted support

97 50 77 189 75 140 105

Source: MPiPS.

In 2008, the law allowed disabled people looking for employment to obtain funds from the State Fund for Rehabilitation of Disabled Persons in order to make a contribution to a social cooperative in an amount specified in a contract concluded with a starost, provided that the amount did not exceed the average remuneration multiplied by fifteen (on 1 March 2013, the amount was PLN 55 354.50) and if they had not received non-repayable public funds for this purpose. According to PFRON data, 119 disabled people received such support in 2008–2013.

Table 4. PFRON funds for contribution to a social cooperative in 2008–2013.

Year 2008 2009 2010 2011 2012 2013

Number of people who were granted support

19 3 16 17 44 20

50 Trzeci sektor w Polsce. Stowarzyszenia, fundacje, społeczne podmioty wyznaniowe. Samorząd zawodowy i gospodarczy oraz organizacje pracodawców w 2010 r., http://www.stat.gov.pl/cps/rde/xbcr/gus/GS_stow_fund_i_spol_podm_wyz_2010.pdf .

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Balance of investments in jobs

Amount of support in PLN 498 699.00 106 000.00 465 905.00 435 704.00 1 077 130.00 548 644.00

Source: PFRON.

However, the support paths described above had some basic shortcomings which included the level of knowledge displayed by employees of poviat employment agencies who were often unfamiliar with the new legal forms, badly adjusted fund granting mechanisms, which were specified in legal standards (the financing application, cash flow, strict forms of support security), to cooperatives’ needs and the pragmatics of officials’ conduct resulting from the regulations referred to above.

Another possibility was obtaining support from the European Social Fund. In 2007–2010, it was possible to obtain support under Priority VI, Measure 6.2: Support and promotion of entrepreneurship and self-employment. According to the Ministry of Rural Development, this form of support enabled the establishment of 69 social cooperatives.

After amending the Detailed Description of the Priorities in 2010, new types of operations were introduced under Priority VII, Promoting of social integration, Submeasure 7.2.2 Social economy support. According to data delivered by the Ministry of Rural Development, by the end of 2012, ESF support was granted to 507 people and amounted to PLN 12.3 million, which allowed the creation of 131 social cooperatives51.

Table 5. ESF co-financing for social cooperatives under Submeasure 7.2.2. as of 31 December 2012.

Type of support Number Financing amount

Co-financing granted to social cooperatives (for establishment, accession, employment): 507 12 373 925

per founder, if the cooperative was established by natural persons 378 8 971 377

per natural person accessing a social cooperative 55 1 021 916

per person employed in a social cooperatives 99 1 666 656

Source: Data delivered by OP HC Intermediate Bodies collected from project providers.

What is problematic in this financing path is its project-related nature which requires social cooperatives to be created at a specific time, regardless of whether the future cooperatives members are ready or not. Sometimes, this may lead to establishing economic entities are composed of people who are economically unprepared, unprepared in terms of cooperation or who lack social skills. When presenting the support mechanism balance, it must be emphasised that the support granted for the establishment of cooperatives covered about 330–340 entities which, compared to the state as of the end of 2012, meant that about 50–55% of social cooperatives was established thanks to public support.

Conclusions drawn from the diagnosisThe above political, organisational and financial diagnosis indicates that:

The significance of the social economy is increasing at the European level, which will directly translate into the establishment of new legal and financial instruments affecting national legislation and into the possibility of obtaining support for the development of the social economy from the EU budget. This may be a significant development stimulus.

51 Data from the OP HC reporting as at the end of 2012.

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The social economy has enormous, unused potential which combines pro-employment and integration elements which stimulates local development, provides services of general interest and creates the necessary social capital. The sector offers unique opportunities in terms of employment of people who are most difficult to activate and, at the same time, engages social resources which encompass 10 million citizens. Currently, the social economy barely impacts the economy as it generates about 1.6% GDP and ensures about 2.7–3.0% of employment in the economy. Therefore, the basic impulse must increase the significance of the social economy sector.

Dispersion, lack of coordination and poor quality of the present support for this sector’s development. The support was “soft”, however it wasn’t sufficiently locally rooted, the support for job creation was minimal compared to the possibilities and there was no development support for the existing social enterprises. This calls for reorganising the entire legal and financial environment of the sector, moving the weight of activities from infrastructure support to direct PRES support and assuring their competence in relation to their social and business role.

The activity of citizens in self-government communities is necessary. We are dealing with decreasing social activity and persistently low level of openness of self-government administration to cooperation with citizens in respect to generating public services and delegating tasks to be fulfilled by social economy entities. We can notice the dependency between the dynamics of social economy development and the level of awareness in terms of the opportunities to use it in public policies and everyday life of self-government communities. This requires permanent cooperation of decision-makers, process managers, institutions and people from the children’s and youth’s environment.

Therefore, the development of the social economy should be based on three closely integrated development drivers:

A political driver, determined to create a friendly atmosphere for the social economy. This results from the need to open public administration to the social economy sector, which requires legal changes and a change in the attitude of administrative employees in terms of organisational culture. It also requires a change in the approach to participation in the creation and implementation of public policies with the participation of social economy entities. This step should be conducted as first, because employers in self-government communities who are not profit-oriented have structures rooted in the local environment which operate using social resources, including volunteers.

A social driver to build social awareness and create new forms of relations in the self-government community. It is impossible to implement the commonly accepted activities under public policies without activating the social potential. Participation has a point only when the relevant interested parties of a partnership are engaged. Public activities may create a legal, organizational and financial framework, but convincing citizens that direct engagement has a point and brings measurable social and economic benefits requires a lot of effort.

An entrepreneurial driver which makes it possible to find a place for competition and socially useful functions of social economy in broadly-defined entrepreneurship. Up to now, one of the shortcomings of the social economy was insufficient promotion of authentic entrepreneurship understood as a particular manner of producing goods and providing services and, by doing so, generating jobs, which also brought a measurable social added value. Therefore, the issue of strengthening the entrepreneurial aspect must be properly reflected in the programming of the new support system.

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Chapter IIObjectives of the National Programme for Social Economy DevelopmentThe National Programme for Social Economy Development describes planned actions which public authorities should undertake, using public resources, to strengthen this sector. This is not a stand-alone objective, as it is intended contribute to the fulfilment of the national development objectives, such as increasing the level of employment (especially in hardly employable groups), social cohesion and social capital.

Therefore, the primary objective of KPRES is as follows:

In order to achieve this primary objective, the development of the social economy in Poland must be more dynamic, both in the quantitative meaning understood as:

the number of people engaged in the social economy,

the number of active social economy entities,

the number of active social enterprises,

and in the qualitative meaning understood as:

creation of jobs for people in the most difficult situation within local government communities,

delivering good-quality services of general interest, especially social services of general interest, to local communities,

achieving a stable activity basis by social enterprises by gaining profit from an economic activity.

Social capital, self-government community of citizens, social participation and social economy are important elements of local social governance. Therefore, it is fully justified to refer in KPRES to a socially responsible territory as a condition for efficient action under public policies, in the good governance formula with the participation of interested parties.

This means that the primary objective of KPRES can be phrased in a more practical manner:

By 2020, social economy entities will become an important element of activation of vulnerable people on the labour market and a provider of services of general interest

which operate in self-government communities.

The above-defined strategic objective can be achieved by taking measures described in particular KPRES priorities. We expect to achieve lower-level results which will later translate into four primary results.

The KPRES structure illustrates the relations between the primary objective, operational objectives and particular results and measures and contains logic models which are presented as a results framework. For the purposes of designing interventions under KPRES, a few logic models were established. The first model shows the relations between the strategic objective and operational objectives/primary results. Other models describe and explain the relations between main objectives, primary results and lower-level results. This allows

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In 2020, the social economy is an important growth factor of employment, social cohesion and the development of social capital.

better understanding of the logic underlying interventions and shows the cause and effect relationship between particular elements.

Describing step by step and explaining the meaning of operational objectives/primary results which are required to achieve the strategic objective, specifying which lower-level results compose the above and what measures should be taken to fulfil these objectives is a confirmation of the systemic approach to the development of the social economy. A detailed description of the measures is presented in Chapter III of KPRES.

Operational objective/primary result 1. Responsible community. Strengthening the role of social economy entities in self-government communities.

One of the conditions precedent to the development of the social economy is permanent and multifaceted embedding and rooting of the social economy in the self-government community. As studies and entrepreneurial experience indicate, strong relationship between social economy entities and local actors, such as administration, entrepreneurs and civic organisations, are a basic factor of social economy’s economic potential and social success.

It is possible to strengthen the local relations only when there is a strong civil sector that actively participates in the social and economic life and strategic planning. This means that it is necessary to establish a legal framework favourable for civic participation (measure I.1), development of the third sector (measure I.2) and various forms of civic education (measure V). Another thing that is closely related to the strengthening of this sector are activities aimed at improving peoples’ skills, including social skills, which is described in a separate result section (IV).

What is also required for the functioning of a responsible community is increasing the share of social economy entities in the provision of social services (measure I.3). The inclusion process will contribute to economical strengthening of these entities and, most importantly, increase the local community’s engagement in the implementation of public policies.

Last but not least, it is necessary to create cooperation relations at the supra-local level by means of, among others, clusters, partnerships and social franchise (measure III.4). Including PES into the cooperation within broad, industry cooperation links, creating conditions that will provide an opportunity to establish permanent, stable economic bonds may significantly impact the competitiveness of the sector.

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Primary objective: In 2020, the social economy is an important growth factor of employment, social cohesion and the development of social capital.

Operational objective 1:Community

Strengthening the role of social economy entities in self-government communities

Operational objective 2:Environment

Creating and maintaining 35 thousand jobs in social enterprises

Operational objective 3:Leadership

Increasing the effectiveness of management and coordination mechanisms for social economy policy

Operational objective 4:Skills

Improving social economy-related skills in the society

Main objective: By 2020, social economy entities will become an important element of activation of vulnerable people on the

labour market and a provider of services of general interest which operate in self-government communities.

Operational objective/primary result 2. Environment. Generation and maintenance of 35 thousand jobs in social enterprises.

One of the most concrete results of KPRES which prove the importance of the social economy for the Polish socio-economic system is its direct impact on jobs generated thanks to public intervention, especially for people in a difficult situation on the labour market and in sectors that are significant from the point of view of development challenges.

It is expected that about 35 thousand permanent jobs net will be generated in this sector. This number was estimated in consideration of the process dynamics, taking into account the effects of direct support for newly created social enterprises and the risk of bankruptcy of social economy entities already existing on the market. Unfortunately, at this stage, there are no reliable data on the value of particular effects. Considering the above, the value should be verified in the first years of Programme implementation.

It will be possible to achieve this result provided that favourable legal, financial and infrastructural framework is established and adjusted to the specificity and needs of social economy entities to allow their stable development. Legal solutions should make it easier to establish and run a social enterprise, and facilitate the process of creating conditions which will be favourable for cooperation between such entities and public institutions within the sector (measures II.1 and II.2).

However, more than a friendly legal environment is required to establish and ensure smooth functioning of an enterprise. Access to capital is another condition that must be ensured (non-repayable capital – measure III.1 and repayable capital – measure III.2). At present, for various reasons, social enterprises have very limited abilities to use the services of financial institutions. This situation should be changed by establishing new financial instruments and modifying the existing instruments to account for the specificity of this sector.

Social enterprises should also have access to the incubation services and professional knowledge on establishing and running an enterprise Such knowledge will be available thanks to specialised support institutions (measure III.3). The support network should also animate local social activity and establish

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Strategic objective

Primary result

By 2020, social economy entities will become an important element of activation of vulnerable people on the labour market and a provider of services of general interest

which operate in self-government communities.

Result 1: Strengthening the role of social economy entities in self-government communities

Measure III.4. Supporting the development of the social economy cooperation and partnership network

Lower-level results

Measures

50% of LGU uses flexible civil dialogue tools

RDPP are functioning in 50% of communes and 30% of poviats.

Adopting and implementing regulations on minimum standards of public consultations

Adopting and implementing regulations on participatory strategic planning

1000 local initiatives will receive support

The number of people employed in social economy entities (excluding enterprises) will increase by 40 thousand.

The number of active civic organisations will increase by 20 thousand.

Adopting modified regulations to facilitate the establishment and functioning of associations

50% of social economy entities acts within a local partnership, franchise, cooperation network

30% of LGU will use social clauses

The value of tasks ordered in a tender procedure by LGU from social economy entities will increase to PLN 3.5 billion, and 15% of tasks will be fulfilled as entrusted tasks

Measure I.2. Supporting local self-organisation and active citizenship

Measure V.2. Educational activities for local groups

Measure I.1. Supporting participatory models of surveying social needs and local planning.

Measure I.3. Supporting the development of services of general interest through social economy.

30% of LGU settles task fulfilment on the basis of the results

cooperation between local government units (including social welfare institutions and employment offices), civic organisations, entrepreneurs and entities providing social and occupational reintegration services which supports the development of complementary solutions allowing to effectively use local resources that also contribute to the promotion and effective implementation of the concept and pragmatics of social economy’s functioning.

35 thousand of permanent jobs, which will hopefully be created by undertaking the activities provided for within this block, should include jobs for young people, jobs in green economy (measure I.4), social services of general interest and jobs related to restructuring activities, especially those leading to the creation of jobs for older people (measure I.4, measure II.1).

The national and foreign experience shows that the social economy fulfils its role within these areas. Moreover, these areas are important from the point of view of the development-related challenges that Poland has to face.

Operational objective/primary result 3. Leadership. Improving the management and coordination mechanisms within the social economy support policy.

Building a responsible local community as well as improving the legal, financial and infrastructural environment require well-coordinated actions supporting the social economy at the local, regional and national level (measure IV. 1 and measure IV.2).

The coordination, as a formula of systemic ordering of relations between various support institutions, is a condition precedent to cohesion between specific state policies towards employment growth, various people who found themselves in a difficult situation on the labour market, within the scope of social welfare, entrepreneurship and local development. So-defined coordination guarantees that the social economy will be included into the coherent process of drafting and implementing public policies.

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By 2020, social economy entities will become an important element of activation of vulnerable people on the labour market and a provider of services of general interest which

operate in self-government communities.Strategic objective

Primary result

Lower-level results

Measures

Result 2: Generation and maintenance of 35 thousand jobs in social enterprises.

Measure II.1. Specifying legal environment of social economy

Measure II.2. Specifying the principles of public procurement and public assistance which support the development of the social economy

Measure III.1. Non-repayable financial instruments.

Measure III.2. Repayable financial instruments

Measure III.3. Social economy and social enterprise support services.

Measure I.4. Supporting the development of social economy activities in key development areas

Adopting regulations on the social enterprise status

About 5 thousand green jobs will be created.

Modifying the act on social cooperatives, act on professional and social rehabilitation and employment of disabled people, and the Cooperative Law

Introducing legal modifications to regulations on public procurement, resulting from directive on public procurement, and increasing the skills of RIO employees and 30% of LGU employees responsible for public procurement

Creating about 10 thousand jobs in PES for people aged 50+ and 10 thousand jobs for young people

In 2016,in each voivodship, there is a network of social economy support services accredited by the minister of labour and social policy

1.5 thousand social entrepreneurs used repayable instruments

Granting 38.5 thousand grants for creation of jobs in social enterprises

About 20 thousand jobs related to provision of family policy and care services will be created.

Considering the above, a strong coordination centre for activities related to the social economy will be established within the public administration structures. As the social economy is an inter-sectoral concept, KPRES implementation should be supervised by representatives of public administration, the non-governmental sector and social partners.

Consequently, due to the bottom-up nature of developing and functioning of the social economy, it is important to support self-organisation of its entities and creating a strong representation thereof which would serve as an advocate of the sector’s interests and ensure good communication between PES and public institutions (measure IV.3).

To ensure appropriate coordination of activities which will allow to improve their efficiency, continuous expansion of knowledge on the social economy sector and permanent monitoring of the indicators specified in KPRES (measure IV.4) are required.

Operational objective/primary result 4. Skills. Improving the society’s skills within the scope of the social economy. It will be difficult to shape favourable conditions allowing real and continuous growth the social economy and its significance in the social development and change processes without making people aware of social and economic advantages of the social economy and without creating a reliable image of this area of civic participation which promotes entrepreneurship, the ability to cooperate and acting in common interest. These skills should be improved both through formal education (at all education levels) and informal education. The subject of social economy should not only be included in curricula at schools and universities, but also in the form of practical social management as pupils’ cooperatives or social enterprises established under ABI (measure V.4).

These educational activities are addressed to current and future social entrepreneurs and the general public: children and youth, members of local communities, entrepreneurs, local governments, etc. The level of skills displayed by these groups may impact the conditions of establishing and functioning of social enterprises (measures V.3 and V.1).

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By 2020, social economy entities will become an important element of activation of vulnerable people on the labour market and a provider of services of general interest

which operate in self-government communities.

Result 3: Leadership. Improving the management and coordination mechanisms within the social economy support policy

Strategic objective

Primary result

Lower-level results

Measures

Increasing the level of knowledge on social economy

Measure IV.4. Monitoring the social economy.

Measure IV.3. Self-organisation of the social economy.

Measure IV.2. Coordination of social economy policy on the regional level.

Measure IV.1. Coordination of social economy policies on the national level.

Establishing in every Regional Centre for Social Policy coordination mechanisms in relation to social economy activities in the voivodship by 2014.

By 2014, establishing an innovative civil-public entity which will take over the tasks related to service accreditation, coordination of activities in the field of innovations, consultancy and region support

Establishing a participatory centre of social economy coordination in public policies (KKR ES) by 2014.

Chamber of Social Entrepreneurs is functioning

50% of social economy entities functions within representative organisations

Result indicatorsThere is a point in setting particular objectives for the Programme implementation only if it is possible to verify the progress. Therefore, monitoring indicators are necessary. They are used for the purpose of assessing the progress in achieving a given objective or result. Indicators are a part of the Programme implementation monitoring. Every year, the progress of KPRES implementation will be reviewed and analysed to check the progress in fulfilment of particular indicators.

OBJECTIVE Indicator

In 2020, the social economy is an important growth factor of employment, social cohesion and the development of social capital.

Number of social economy entities

Number of social enterprises

Number of people working in PES and SE.

Primary result 1. Responsible community. Strengthening the role of social economy entities in self-government communities.

Percentage of LGUs which obtained the status of a social economy-friendly commune / poviat.

Share of the LGU budget devoted to ordering services from SE entities.

Percentage of PES which claim that the support received from the local community is important for their functioning.

Primary result 2. Environment. Generation and maintenance of 35 thousand jobs in social enterprises. Net number of jobs created in PS.

Primary result 3. Leadership. Improving the management and coordination mechanisms within the social economy support policy.

Percentage of key interested parties (including public administration representatives, social economy entities, social enterprises, NGOs and social partners) positively assess the system of coordination and management supporting the social economy.

Primary result 4. Skills. Improving the society’s skills within the scope of the social economy

A synthetic indicator of how the society perceives the social economy.

Specific indicators for measures are attached as Annex no. 1 to the Programme.

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By 2020, social economy entities will become an important element of activation of vulnerable people on the labour market and a provider of services of general interest which

operate in self-government communities.

Result 4: Skills. Improving the society’s skills within the scope of the social economy

Strategic objective

Primary result

Lower-level results

Measures Measure V.1. The social economy as a concept and cultural identity.

Measure V.2. Educational activities for local groups.

Measure V.3. Education on the school and academic level.

Measure V.4. Non-formal education model for children and youth.

100 social enterprises are activated under Academic Business Incubators or academic initiatives.

Basic social economy elements are included in the core curriculum.

The system of micro-grants is active in 12 voivodships.

In 10% of primary schools and secondary schools there are pupils’ cooperatives or other forms of cooperative entrepreneurship.

Increasing the level of knowledge among 30% of members of local RDPP, LGU Councils and LGU management board members.

Popularising the idea of the social economy in the society.

Flexibility and Programme management

The current development processes in the socio-economic and cultural context have their own dynamics and complexity both in the global, European and national perspective. What characterises the investment structures is the ability to respond to on-going changes and manage the related risk. The National Programme for Social Economy Development, being a programme of an innovative nature, assumes the possibility of responding to on-going changes on a yearly basis and managing such changes by means of the embedded social economy monitoring, evaluation and reporting system in Poland and its particular regions.

Flexible change management assumes the possibility to redefine selected elements of the strategy within the context of remedial procedures, new challenges and the necessity to look for new solutions as a next opening.

KPRES provides for this flexibility and openness. Regional and state committees which are responsible for decision-making and units properly authorised to implement such decisions were clearly defined and equipped with the necessary skills.

The Programme will be monitored and periodically evaluated with respect to selected issues by the State Committee for Social Economy Development, as stated in Priority IV, measure IV.1. These measures will be implemented at both the regional and national level. The obtained results will be used to draft a report on the condition of the social economy at the level of particular regions and the country. Every year, the report and evaluation-based recommendations will be used by the inter-sectoral regional teams and the state committee to decide on necessary changes, directions of the social economy and social entrepreneurship development and implementation of regional and national plans. The State Committee will also specify the directions in which new solutions for innovative projects should be sought to respond to the changeable environment or new needs arising in relation to KPRES implementation. The Committee will also assure that the KPRES and regional programmes for social economy development are coherent. KPRES also provides for stimulation of scientific research to optimise the fulfilment of the Programme’s objectives, and play a special role in the restructuring of local labour markets. However, introducing new solutions based on partnership cooperation and dialogue and simultaneously standardising services for the benefit of the social economy requires continuous monitoring of efficiency and adequacy of the offered solutions.

Furthermore, in 2017, the Programme and regional plans will be subject to a comprehensive mid-term review. On the basis of this review, particular regional committees and the state committee will decide about possible changes to KPRES and the regional programmes.

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Chapter IIIPriorities of the National Programme for Social Economy DevelopmentThe Programme’s objectives can be achieved by implementing some measures, which were grouped into five key priorities and nineteen directions of public intervention. The priorities and directions were specified according to an analysis of objectives which must fulfilled and identified needs of the social economy sector.

Operational objective 1: Responsible community – the manner of achieving this objective is laid out in Priority I which, in its substantive part, emphasises the provision of pro-employment services and services of general interest as a determinant of the social economy development. Priority III refers to the conditions for establishing cooperation networks and supporting local animation; Priority V specifies the place and role of education in the development of a responsible community.

Operational objective 2: Environment – this objective is fulfilled using instruments, tasks and recommendations included in Priorities II and III which refer to the establishment of a friendly legal, organizational and financial environment (infrastructural support for the development of the social economy); Priority I lists development preferences for the implementation of operational objective 2: Environment.

Operational objective 3: Leadership – the objective is fulfilled using means and systemic solutions proposed in Priority IV, which encompasses issues related to the coordination of activities at the national and regional level, inclusion of the social economy into the mainstream public policies, support for networking activities and advocacy efforts undertaken in favour of the social economy sector, and the mechanisms described in Priority III within the scope of establishment of a cooperation network and in priority V within the scope of popularization of skills.

Operational objective 4: Skills – this objective is fulfilled by following specific actions trends described in Priority V, including issues related to awareness, education and skills towards the social economy.

All priorities, measures and particular directions of interventions were formulated in a manner allowing precise formulation of tasks and methods of their evaluation.

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Main objective: By 2020, social economy entities will become an important element of activation of vulnerable people on

the labour market and a provider of services of general interest which operate in self-government communities.

Primary result 2. Environment. There is a friendly environment supporting the development of social economy entities.

Primary result 1: Responsible community. Strengthening the role of social economy entities in self-government communities.

Primary objective: In 2020, the social economy is an important growth factor of employment, social cohesion and the development of social capital.

Primary result 4. Skills.The notion of the social economy fully exists in the social awareness

Primary result 3. Leadership. The social economy is a permanent part of public policies

Priority I.Social economy on a socially responsible territory

Priority II. Regulatory activities in the field of the social economy.

Priority III. Social economy support

Priority IV. Incorporating social economy into the mainstream public policies on the national and regional level.

Priority V. Education for the social economy.

Priority I. Social economy on a socially responsible territory.The development of the social economy sector should be based on activities rooted in the social community, oriented on social matters, preferences related to local activity and the internal local market. This means that products and services offered by social enterprises and social economy entities must meet the needs of consumers in the local community. This measure can and should be aligned with the constitutional obligations imposed on the local government community which are aimed at on-going and continuous satisfaction of collective needs of the population by providing generally accessible services of general interest.

What constitutes the essence of the above-mentioned services is the manner in which they are provided (not based on profit) and the fact that they are addressed to the general public in consideration of their diversified needs. The key purpose is to ensure that the basic rights of socially and economically vulnerable people are enforced and that such people are protected.

The social economy will develop where partnerships are created and where increasing trust forms the basis of mutual relations between citizens, institutions and entities in the local government community. Therefore, the actual development of the social economy depends on how the participatory, conscious policy of a local government community, combining solidarity and entrepreneurship, is shaped. This priority will be implemented by means of the following public intervention measures:

Measure I.1. Supporting participatory models of surveying social needs and local planning.

The essence of a socially responsible territory and the development of SGI to meet social needs is local diagnosis and planning in consideration of the development dynamics. The above refers to the permanent process of data verification with the participation of the local community. In order to face these challenges, it is necessary to assure access to information and apply the established principles and forms of cooperation of public administration and citizens in practice. Considering the above, the following measures (public intervention directions) will be supported:

1. Development and implementation of legal changes aimed at ordering the strategic programming of local government in the field of social policy as well as the mode and manner of conducting public consultations, social and civil dialogue, which will allow planning and effective shaping of the social service development by:

a) reviewing and organising legal acts to meet the obligations related to drafting programmes and commune or poviat strategies in the field of social policy or the overall development strategy,

b) introducing the obligation to develop a uniform strategy for commune social policy (or a part of the social development strategy) at the commune or voivodship level which will replace the commune and poviat strategies for social problem solving, which will be reflected in economic development programmes,

c) introducing uniform three-year social policy programmes (commune and poviat development programmes) which will encompass all current programmes, including programmes for cooperation with NGOs, a financial scheme and implementation indicators,

d) specifying provisions on minimum requirements regarding the system of consulting strategies and programmes with the local community, civic organisations and socio-economic partners.

(as indicated in the National Programme for Combating Poverty and Social Exclusion 2020. New dimension of active integration.);

2. Providing methodical support, animating and promoting flexible civil dialogue tools (including standing conferences, deliberative opinion polls, civil panels) and participatory budgeting, which will be phased into the new areas of public policies;

3. Supporting the development of civil education in the field of local government communities, promotion of the right to participate as well as procedures and methods of participation in the decision-making

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process, promoting dialogue with various public and non-public partners and citizens to solve basic social problems and plan the development of local government communities;

4. Supporting social activation in the field of community matters by, among others, engaging the citizens and community in actions towards the common good, supporting membership in civic organisations, developing the consumer movement among local groups, including independent consumer tests.

5. Supporting intensive cooperation between local communities and public institutions by, among others, undertaking actions targeted at integration with local groups, supporting local animation and cooperation and using public spaces for civic participation purposes;

6. Developing and implementing a model of functioning of commune, poviat and voivodship public benefit activity councils and training council members in participatory methods of local planning (Priority V);

7. Promoting and supporting common local government organisation and NGOs’ projects which are related to the use of public spaces for active citizenship, referring tasks to auxiliary units and local groups, and providing funds for their implementation;

8. Supporting citizens’ access to free-of-charge legal and civil advice as an important instrument combating social exclusion, and supporting the citizens in their return to social and professional activity.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.3.4.5.6.7.8.

Indicative sources of financing Within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security (1); Operational Programme Human Capital, Priority V (6);Operational Programme Knowledge, Education and Development for 2014–2020, Objective 11, Priority 11.3. (2) – within the scope related to the strategic management in local government units;Civic Initiative Fund (3, 4, 5, 6, 7); Regional Operational Programmes, Objective 9., Priority 9.7. (8); private funds (3, 4, 5, 6, 7).

Coordination Minister competent for social security.

Measure I.2. Supporting local self-organisation and active citizenship.

The social economy will not develop without the development of civic initiatives and organisations at the local level. Considering the above, the following tasks will be supported:

1. Drafting and implementing legal changes to facilitate the process of association and active citizenship in order to:a) decrease the number of people required to establish a registered association,b) grant the rights of a legal person without the corporate status to regular associations to allow the

tasks ordered by local government administration,c) allow simplified accounting to small civic organisations;d) simplify the implementation of local initiatives;e) speed up and facilitate the registration of civic organisations and social enterprises in KRS,f) draft a uniform policy on mutual activities, especially in the scope of practical achievement of fiscal

targets, in order to facilitate the support offered by the state and economic partners for the development of citizens’ activities.

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2. Supporting the institutional development and development of new (especially local) civic organisations acting or commencing activity in the scope of social services of general interest by:a) regional FIO competitions offering institutional support in the form of micro-grants for

development to new civic entities,b) systemic training (including consultancy services, tutoring and supervision) for local animators and

leaders acting in the social, economical and cultural environment.3. Promoting activities of non-formal structures and social movements which allow to support networking

undertakings, undertakings which promote dialogue and community-oriented attitude, including (in particular): consumer cooperatives, community-supported farming groups, mutual exchange groups, etc.

4. Supporting the development of auxiliary units of communes (district councils, estate councils, village councils) in favour of their participation in local development policies by:a) offering substantive support to members of auxiliary unit bodies (training, consultancy),b) promoting legal solutions that which developed in certain self-governments to strengthen the

social responsibility of citizens for the territory.5. Promoting and supporting voluntary work in the form of internships in civic organisations for young,

unemployed people as a manner of gaining civic, social and professional skills, especially in the form of long-term voluntary work.

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6. Conducting national and regional activities supporting the development of local initiatives as an important element of the development of local activities undertaken in general interest, by means of special competitions which support the best practices among local governments.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.3.4.5.6.

Indicative sources of financing Within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security (1, 2b, 3, 6); Civic Initiative Fund Programme (2a, 5 within the scope of organisation support); Operational Programme Knowledge, Education and Development for 2014–2020, Objective 11., Priority 11.3. (4 – also within the scope regarding strategic management support in local government units); Labour Fund, within the scope of scholarships (5);private funds (2a, 5).

Coordination Minister competent for social security.

Measure I.3. Supporting the development of services of general interest through social economy.

Mutual relations between the social economy sector and commune and poviat governments require integrated actions intended to increase active participation of partners in the provision of local services of general interest. Elements often emphasised in the European debate include, in particular, services supplementing and supporting the role and functions of the family, including: childcare, services related to the care of elderly people and dependants, and disabled people. This refers to legal, organisational and educational measures. Therefore, the following tasks will be supported:

1. Methodical activities intended to:a) develop further standards for particular types of social services of general interest and specify the

minimum and optimum levels of these standards,b) promote and implement innovative projects to test innovations,c) in cooperation with self-government organisations, create a database of good SGI practices which

will contain information on the cost of their provision (using the effects of innovative programmes, including those implemented under the Operational Programme Human Capital).

2. Systemic activities which support local and regional undertakings intended to establish the National Platform of Social Services in the form of a civil-public partnership with the participation of MPiPS representatives, associations of local government units and civic organisation federations that gather organisations providing social services intended to:

a) monitor policy implementation and check the quality of social services provided by social economy entities (including civic organisations),

b) standardise social services and civil-public cooperation in the field of service provision; draft premises of legal acts that will relate to the provision of social services,

c) undertake educational activities related to the implementation of social service standards.3. Legal and educational measures:

a) drafting and implementing legal changes which specify the principles and mode of cooperation in terms of commissioning tasks of general interest and settling accounts for the fulfilment thereof on

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the basis of their results, not cost principles, which will significantly strengthen the role of contracting public tasks,

b) drafting and introducing to local planning and development documents, under the local regulations, provisions on the use of social clauses in public procurement (specified in the Public Procurement Law) when purchasing social services of general interest under public procurement. These provisions should be introduced and specified by way of a public debate on the contents of local planning and development documents.

c) introducing the concept of local contracts to the acts of self-government institutions; local contracts would be concluded by voivodship governments with commune and poviat governments and they would provide that:

the local government voluntarily joins the project of cooperation with the voivodship government, builds a local partnership towards the contract performance and drafts an “action plan” for two years,

the voivodship government assists the local government in developing the plan referred to above (and draft common recommendations as a part the annual assessment of social assistance resources) in the form of a short-term plan for social change; the plan will be related to the activities for the development of social services of general interest, will support the agreed measures, cover the local government with supervision and evaluate the implementation. The voivodship government can fulfil its tasks via or using the assistance of entities which provide social animation services referred to in Measure III.3. of the Programme. The contract may be also applied in other development areas;

d) organizing regional educational activities to change the manner of fulfilling tasks of general interest by including the social economy sector;

e) organising regional educational and training activities in order to implement social clauses in public procurement in communes, poviats and voivodships as a permanent component of SGI provision.

4. Development measures:a) it is planned to develop European fund financing flows for communes (or groups of communes)

and poviats (or groups of poviats) which, together with civic organisations (under civil–public partnerships, would implement development projects. The aim of these projects would be to develop social services of general interest, as provided for in the provisions and financing plan of the National Programme for Combating Poverty and Social Exclusion 2020. New dimension of active integration;

b) development projects will be targeted at developing the existing categories of services in local communities or creating new categories, and creating jobs in the social economy sector.

Definitions of social services of public interest encompass the following social services listed in the Common Procurement Vocabulary 52:

CPV Code Description

85310000-5 Social work services

85311000-2 Social work services with accommodation

85311100-3 Welfare services for the elderly

85311200-4 Welfare services for the handicapped

85311300-5 Welfare services for children and young people

85312000-9 Social work services without accommodation

85312100-0 Daycare services

52 The table presents the scope of social services of general interest which would be finances under development projects within Priority 9.7 of Regional Operational Programmes. Services which are covered by other types of activity (e.g. social work, childcare, nurseries, kindergartens) were omitted. Next to the official wording of categories, in brackets, the table presents explanations which reflect the meaning of a given category in a more precise manner.

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85312120-6 Daycare services for handicapped children and young people

85312200-1 Homedelivery of provisions (at home)

85312310-5 Guidance services

85312320-8 Counselling services

85312330-1 Family-planning services (family planning and support)

85312400-3 Welfare services not delivered through residential institutions

85312500-4 Rehabilitation services

85312510-7 Vocational rehabilitation services

85320000-8 Social services

85321000-5 Administrative social services (service coordination)

85322000-2 Community action programme (of local community organisation)

85323000-9 Community health services (local public health programmes)

The above measures allow the cooperation between the voivodship government and the local government, and inter-sectoral cooperation within self-governments (social capital). Moreover, such actions would cause the development of social services of general interest, the social economy and social enterprises. This measure should be supported by local animation services.

5. Continuous broadening of the scale of contracting social economy entities to fulfil public tasks within the framework of providing SGIs by supporting and contracting public tasks. This will be possible by implementing educational, legal and organizational processes provided for in the Priority.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

1c2.3.4.5.

Indicative sources of financing Within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security (3a, b, c);Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9., Priority 9.7. (1, 2 within the scope of provided services); Regional Operational programmes, Objective 9., Investment priority 9.7. (3d, e, 4 within the scope of provided services), with the possibility of using Investment priorities 9.1. and 9.2.; budgets of local government units (5).

Coordination Minister competent for social security, voivodship, poviat and commune governments.

Measure I.4. Supporting the development of social economy activities in key development areas.

Engagement into the activities under development programmes is an important element of the proposed directions of social economy development. It contributes to the modernisation of social services, sustainable development policy, regional and local development policies.

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1. Supporting sustainable development measures by (among others):a) developing social economy entities which promote the environmental education system among

citizens, also in relation to the right to environmental information, information on hazards, and education on crisis activities,

b) developing social enterprises and enterprises functioning in the field of renewable energy sources within the scope of selective waste collection, recycling and other services related to keeping communes clean and tidy, and within the scope of land reclamation and forestry services,

c) seeking new opportunities to support social farming (socially engaged farming) projects 53 encompassing measures related to social reintegration, social and occupational rehabilitation, and measures allowing people in difficult situations to get involved in the production activities and nature, which contributes to improving those people’s mood, their health and social inclusion54.

2. Supporting measures for the development of social community, identity and cultural education by (among others):

a) creating legal solutions and financing projects that generate jobs in social economy entities in the field of social tourism,

b) generating jobs in social economy entities in the field of social housing,c) financing activities within the scope of local culture-related projects which combine permanent job

generation with social animation using the local cultural potential.3. Supporting measures for generation solidarity by (among others):

a) supporting the employment of university graduates in social economy entities and social enterprises,

b) supporting the process of establishing and running social enterprises by employees at pre-retirement age as a tool for prolonging professional activity and supporting employment of people older than 45, using their experience and professional skills,

c) developing social enterprises and social economy entities which support family policy (nurseries, children’s clubs and day care workers, kindergarten establishments, school common rooms and school, summer and winter vacation, dependants care, day support centres) not only as care and educational entities, but also as entities which integrate the local community,

d) supporting projects of social enterprises and social economy entities which target their economic activities at older consumers, meet their expectations and needs within the scope of (among others): social services, educational services, free time organisation, youth and senior citizen tourism, and which support them in their attempt to remain socially and professionally active and stay in a good health condition (creating conditions for the development of the so-called silver economy).

4. Supporting the development of social integration services by (among others):a) changing the legislation on social employment to allow systemic financing of social and

occupational reintegration services and supported employment services provided at Social Integration Centres and Clubs which provide the required standard of services and are certified (accredited) by the minister competent for social security, as specified in the National Programme for Combating Poverty and Social Exclusion 2020. New dimension of active integration.

b) incorporating social economy and social entrepreneurship issues into the minimum curriculum of social assistance and integration employees’ education, including an attempt to introduce the possibility of allowing social employees to specialise in social economy,

c) developing, implementing and supporting a monitored employment system (combined with a social programme) in social enterprises for excluded people or people at risk of exclusion, as a part of the social integration and reintegration path,

53 Gospodarstwa edukacyjne w koncepcji rolnictwa zaangażowanego społecznie, Śląski Ośrodek Doradztwa Rolniczego, Częstochowa 2014.54 Opinion of the European Economic and Social Committee on ‘Social farming: green care and social and health policies’ (own-initiative opinion) dated 19 January 2012.

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d) implementing and developing systemic activities of social enterprises as a form of employment for people from Vocational Activity Establishments, Occupational Therapy Workshops, Social Integration Centres, education care centres and, possibly, other institutions or foster custody forms.

5. Supporting the development and application of social entrepreneurship in processes which support the change of the current professional path of employees:

a) the use of social entrepreneurship in outplacement and professional adaptation processes, the possibility of establishing social enterprises in relation to restructuring processes, especially for employees aged 50+.

b) seeking opportunities to support re-deployment of people leaving the army and other uniformed services by creating a special path for contract soldiers leaving the army, which would be based on social entrepreneurship instruments,

c) seeking opportunities of supporting re-deployment of people leaving the farming sector.

The directions of development of social enterprises listed above will be supported using access criteria, strategic criteria and other preferences specified by competent regional and local authorities in accordance with the needs of a given group and strategic documents which specify the fields claimed to be most significant for a given self-government community.

6. Moreover, the directions of development will be supported by innovative projects which allow the creation of validated enterprise models that operate regionally and locally and, in particular, development of social economy entities which operate in key development areas.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.3.4.5.6.

Indicative sources of financing The Labour Fund, PFRON (1, 2, 3, 4c, d, 5) within the scope of preferring types of activity and special programmes, as provided for in the act; Regional Operational Programmes, Objective 9, Investment priority 9.8. (1a, b, 2, 3, 4c, d, 5) within the scope of preferring types of activity and selecting particular types of projects in compliance with the act; Regional Operational Programmes, Objective 8., Investment priority 8.8. (3c) within the scope of nurseries, children’s clubs and day care workers;Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9., Investment priority 9.8. (6) within the scope of innovation; Within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security (2a within the scope of social changes, 4a, b).

Coordination Minister competent for regional development, minister competent for social security,voivodship governments, poviat governments.

Expected results of Priority I

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The results achieved by implementing Priority I will increase civic participation and significantly increase the participation of social economy entities in the development, implementation and monitoring of public policies implemented by local government units. At the same time, these measures will increase openness of self-government authorities to cooperation with social economy entities. All these actions will allow us to achieve the first primary result of KPRES, i.e. strengthening the role of social economy entities in self-government communities. The results will also impact the creation of 35 thousand new jobs in social enterprises (Result II of KPRES).

Measure I.1. introducing a new social policy programming system together with a public consultation system in all communes and poviats by 2016;

implementing electronic tools which deliver comparative data allowing to create social policy programmes in communes and poviats by 2016;

establishing public benefit activity councils in 50% of communes and 30% of poviats by 2020;

Measure I.2. increasing the number of active civic organisations by 20 thousand in comparison to 2011;

implementing procedures for local initiative implementation in 80% of local government units;

increasing the number of social initiatives to at least 1000 initiatives a year;

covering 310 young people with long-term voluntary work in social organisations by 2020r.;

Measure I.3. introducing result-based task fulfilment settlement in 30% of LGUs;

increasing the level of contracting public task fulfilment under a tender procedure by local government units to social economy entities to PLN 3.5 billion from LGUs’ budgets;

increasing the number of public tasks entrusted to social economy entities to 15% of tasks contracted under the tender procedure.

increasing the employment in social economy entities which are not enterprises by 40 thousand people in relation to 2010;

Measure I.4. creation and maintenance of about 10 thousand jobs for young people in social enterprises;

creation and maintenance of about 20 thousand jobs in social enterprises operating in the field of social service of general interest, especially services related to care and family policy;

creation and maintenance of about 10 thousand jobs for people aged 50+ in social enterprises;

creation and maintenance of about 5 thousand green jobs in social enterprises55.

Priority II. Regulatory activities in the field of the social economy.The social economy is developing both as a theoretical category and practical activities which are carried out pursuant to numerous specific legal solutions. Unfortunately, there are no uniform, coherent regulatory solutions which would constitute a coherent basis for its functioning or be a clear impulse for development. One of the key priorities here is to organise the definition-related areas of the social economy and social enterprises which are supported by the state through developing new legal solutions and modification of the

55 The expected measure indicators related to the number of jobs do not add up (cross formula), the provision indicates the direction of activities (jobs for particular demographic groups can be combined with the activities related to services; these can include, e.g. green jobs for young people).

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existing regulations currently hindering the development of the social economy. These activities should be performed using the experiences and knowledge of the Legal Group of the Team for Systemic Solutions in the field of Social Economy.

Measure II.1. Specifying the legal environment of the social economy.

In order to design and commence activities addressed to the social economy and social enterprises’ sector, especially those activities which are to be implemented in the new financial perspective for 2014–2020, me must define the social economy sector and the term “social enterprise”. This will allow us to organise the legal system and clearly indicate places and roles of the social economy and social enterprises in the socio-economic system, and to better address the support for social enterprises. Considering the above, the following tasks will be fulfilled:

1. Basic regulatory solutions, which define social enterprises in the legal context, will be implemented and basic rights and obligations of social enterprises as well as principles and forms of providing them with state support will be specified. It will be possible thanks to the adoption of the Act on Social Enterprises and Social Economy Support. The status of a social enterprise will be obtained by entities which conduct an economic activity and meet all of the following conditions:

a) they employ at least 50% of unemployed or disabled people (in the case of severe and moderate disability: 30%), or people at risk of social exclusion, or

b) they provide social services, services for disabled people, services related to social housing, education, culture, development of local and regional communities or social tourism and, at the same time, employ least 20% of people from particular groups at risk of social exclusion when converted to full-time equivalents,

c) do not distribute profits or balance surplus among the shareholders, but use at least 10% of their profit or balance surplus for the purpose of occupational and social reintegration (in the case of employment enterprises) or for public benefit activities conducted for the benefit of the local community in which the enterprise is operating, while the remaining amount of earned funds is used for strengthening the enterprise’s potential,

d) they do not pay remuneration exceeding the average remuneration amount multiplied by three to any member of the management board or employee,

e) they have a consultation and consultancy body composed of representatives of employees, other employed persons and volunteers who provide their services to the enterprise; moreover, the body may be comprised of representatives of constant recipients of goods or services provided by the enterprise. This obligation does not refer to small enterprises or cooperatives.

Having the status of a social enterprise will (among others) allow preferential treatment provided for in the act, which entails the purchase of particular services of general interest and other services which are not included in the Public Procurement Law in accordance with the principles set forth in programmes for cooperation with non-governmental institutions or other self-government programmes. This status will also allow entities to use loan and guarantee funds addressed to social enterprises.

2. The following changes (among others) will be implemented in relation to social cooperatives:a) allowing young people looking for employment, farmers and people employed pursuant to civil-

law agreements who have a low level of income, as representatives of a new category of people at risk of social exclusion, to establish social cooperatives. The number of persons required to establish a social cooperative will be simultaneously lowered.

b) lowering the minimum requirement regarding the employment of people at risk of social exclusion to 20%, provided that a given cooperative provides social services of general interest,

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c) verifying the definition categories and the scope of expenses for professional and social reintegration, and making them more specific,

d) unifying the support system for job creation, which is currently functioning pursuant to separate regulations,

e) introducing solutions conducive to increasing the non-divisible resource funds which allow social cooperatives to develop,

f) simplifying the liquidation procedures and specifying the manner in which common property of a cooperative established thanks to the public support or the EU support is to be allocated exclusively for socially useful purposes after such liquidation.

3. Regulatory solutions in the scope of supporting the employment of disabled people within the social and professional reintegration process, and within the system of support for professional activation in the social economy sector will be implemented. The most important will be solutions intended to:

a) combine the activities of Occupational Therapy Workshops with the opportunity to professionally activate their participants by offering them internships, professional training and employment in social enterprises and Vocational Activity Establishments, allowing OTW participants to complete internships in social economy entities (e.g. ZAZ, social cooperative) without depriving them of the right to further participate in the Workshops,

b) develop a supported employment system, covering activities preparing people to start work or look for a job, and the employer’s engagement and support in the workplace and outside of it,

c) incorporate PES into the sector of services supporting disabled persons within the scope of consultancy, assistance services, work assistants and coordinators of supported employment,

d) consider the possibility of lowering the required payments to PFRON (after estimating its financial impact) for purchasing a service or a product from a social economy entity which employs less than 25 employees, including not less than 40% of people suffering from severe disability or blind people, mentally ill people or mentally disabled people, people suffering from pervasive developmental disorders or epilepsy, classified as suffering from a moderate level of disability, or 60% of people suffering from a moderate level of disability,

e) consider the possibility of clarifying legal regulations on ZAZs to account for their hybrid nature of a reintegration entity which conducts an economic activity on a scale allowing the fulfilment of the basic task of such entities, i.e. professional, social and medical rehabilitation, and continuing to support ZAZs in their activities intended to include their employees into the open labour market.

4. Legal changes on the functioning of cooperative enterprises, especially worker cooperatives and cooperatives of disabled and blind people, will be drafted and implemented, including (among others):

a) lowering the minimum number of members of cooperatives which associate up to 5 natural persons,

b) allowing cooperatives to conduct public benefit activities,c) allowing simplified accounting to small cooperatives,d) introducing solutions that improve the functioning of cooperatives and adjust them to the

economic reality (among others: compulsory training for members of Supervisory Boards, introducing the obligation to justify instances of dismissing a member of the Management Board, allowing inheritance of shares in cooperatives, allowing the possibility to supplement the agenda of the Meeting of Shareholders when all members of the cooperative are present, similarly to what is stated in the Code of Commercial Companies),

e) allowing the possibility of transforming companies into cooperatives (e.g. by employee buyout); preferring accumulation of capital in cooperatives and services provided by cooperatives for its members,

f) allowing non-profit cooperatives to function in accordance with principles similar to the those for non-profit companies.

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5. Following the adoption of legal solutions, their provisions will be monitored and possibly amended. Every two years, the State Secretariat for Social Economy will check whether the legal regulations on social enterprises, professional and social rehabilitation of disabled people, social cooperatives and public benefit activities are appropriate and up to date. Moreover, analytical works will be conducted in relation to other forms of social activity than economic activity, such as cultural and educational activity, development of local communities, social tourism and mutual forms of the social economy.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.3.4.5.

Indicative sources of financing Within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security (1, 2, 3, 4, 5). If changes specified in item 3a, d, e are implemented – State Fund for Rehabilitation of Disabled Persons56; Operational programme Knowledge, Education and Development for 2014–2020, Objective 9., Investment Priority 9.8. (5).

Coordination Minister competent for social security.

Measure II.2. Specifying the principles of public procurement and public assistance which support the development of the social economy.

Legal solutions which impact the conditions of running and economic activity by social economy entities and social enterprises are of particular importance for the social economy sector and social enterprises. The prepared measures will incorporate the achievements of the supranational Social Entrepreneurship Network partnered by MIiR and MPiPS, and systemic activities undertaken by MPiPS. The designed activities in the field of public procurement will be related to the implementation of the National Action Plan on sustainable public procurement 2013–2016 prepared by the Public Procurement Office and plans for subsequent years until 2020.

Therefore, the following tasks will be fulfilled:

1. Introducing a principle that, besides the assessment criterion, the quality criterion specified in the resolution of the LGU decision-making body must be applied when selecting providers and organisers of social services of public benefit, in accordance with the provisions of the Public Procurement Law. It is possible to apply the quality standards developed under project “Creation and development of quality standards for services of social assistance and social integration” under Priority I OP HC, provided that they meet the requirements specified in Article 91 of the Public Procurement Law.

2. Implementing the measures provided for in the National Action Plan on sustainable public procurement 2013–2016.

3. Amending the provisions of the Public Procurement Law in compliance with the new directives on public procurement law, in particular those related to:a) the so-called reserved contracts,b) the special regime of awarding contracts for social services indicated in the directives referred to

above,c) the possibility of reserving contracts for particular social services indicated in the directives and

other special services to be provided for specified entities which meet the conditions listed in the directive, including social economy entities which meet the aforementioned conditions,

56 The financial impact on PFRON will be estimated when a decision on adopting particular solutions listed in item 3d is made.

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d) abnormally low offers (especially within the scope of checking compliance with applicable regulations in the field of social law and labour law),

e) contract performance conditions,f) appropriate means which ensure that contractors meet their obligations under social and labour

law while performing public contracts.4. Supplementing the Act on Social Enterprise and Supporting Social Economy and the Act on Social

Cooperatives with provisions allowing the awarding entity to order services and deliveries which are not covered by the Public Procurement Law Act exclusively from social enterprises or other social economy entities. These orders, which are provided for in Polish and EU law, must be made for a particular purpose and conducted in a cost-efficient manner, in accordance with the principles of obtaining the best effects on given resources and optimum methods and resources used to achieve the set goals.

5. Assuring that support instruments for social entrepreneurs, if they refer to the economic activity conducted by these entities, are compliant with applicable legislation on social assistance (including provisions on assistance provided as compensation for provision of services of general economic interest which satisfy social needs in the field of healthcare and long-term care, child care, reintegration on the labour market, social housing, care over vulnerable population groups and social exclusion thereof, assistance under block exemptions, or regulation on de minimis aid).

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6. After amending the Polish Public Procurement Law as indicated in item 3, a comprehensive educational process targeted at public administration employees, including Regional Accounting Chamber and social enterprises will be developed and implemented, including in particular:a) preparation of materials popularising solutions regarding socially responsible public procurement

resulting from new EU directives, which will present examples of effective use thereof in public contract award procedures,

b) creating a database of Terms of Reference (ToR) which contain social clauses or reserved contracts; the ToR database would also contain questions regarding legal matters and explanations provided by public institutions thereto,

c) preparation and provision of training on changes to Public Procurement Law Act within the scope of socially responsible public procurement which result from the transposition of the new directive public procurement,

d) promoting the observance of standards specified in legal regulations on labour law through public procurement.

The changes will be monitored as they impact the functioning of social enterprises.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment

1.2.3.4.5.6.

Indicative sources of financing

Budgets of local government units (1);Within the limit of expenses imposed on the part of the state budget managed by the President of the Public Procurement Office (2, 3);Within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security (4);Within the limit of expenses imposed on the part of the state budget managed by the President of the Office of Competition and Consumer Protection (5);Operational Programme Knowledge, Education and Development for 2014–2020, Objective9., Investment priority9.8. within the scope of training social entrepreneurs, regional trainers/advisers and Objective11., Investment priority 11.3. within the scope of training the representatives of institutions and awarding entities, including LGU, Supreme Audit Office, RIO and Regional Operational Programmes staff, Objective9., Investment priority9.8. (6).

Coordination Local government Units (1),Public Procurement Office (2, 3, 6),Minister competent for social security (4, 6), Office of Competition and Consumer Protection (5).

Expected results of Priority II

The results of Priority II within the scope of organising legal regulations on the functioning of social enterprises and their environment will contribute to the achievement of the Primary Result II, i.e. generation of 35 thousand jobs in social enterprises. Organising legal regulations will allow the creation of new social enterprises and will facilitate the functioning of the existing ones. These results will contribute to the fulfilment of objective III as legal changes will allow the creation of the Chamber of Social Enterprises which is an important component of the social economy policy.

Measure II.1. adopting regulations on the social enterprise status in 2014, implementing them and ensuring continuous monitoring;

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amending and continuously monitoring legal regulations on employment of disabled people;

amending and continuously monitoring legal regulations on social cooperatives;

amending and continuously monitoring the provisions of the Act on Cooperative Law;

Measure II.2. introducing legal modifications to the regulations on public procurement in relation to the new directives on public procurement within the timeframe indicated in the directives referred to above;

training of employees of Regional Accounting Chambers responsible for conducting controls in local government units and LGU employees responsible for public procurement in at least 30% of these entities by 2020;

training employees of about 1 thousand social enterprises and 100 trainers/regional advisers by 2020;

reaching the 15% share of “social” public procurement on the national level, measured in accordance with the PPO’s methods, in 2020;

using socially responsible public procurement with particular emphasis on pro-employment instruments, such as social clauses in public procurement and/or reserved contracts by at least 15% of LGUs in 2020.

Priority III. Social economy support system.One of the most burning needs of the developing social economy in Poland is the development of a support system for this sector’s entities. This encompasses consultancy and services and, most importantly, facilitating access to financial capital. The general lack thereof is one of the main reasons for quantitative and qualitative weakness of the social economy.

Funds for the development of the social economy should be mostly spent on direct support of social enterprises and the social economy sector. Social enterprises will receive financial support in the form of grants (for establishment of a social enterprise and conducting public benefit activities), loans and guarantees (for economic development of existing social enterprises). The financial assistance offered to social enterprises should be closely related to the training and consultancy offer and relate to detailed expectations in terms of effects of their activities. This solution will enhance the social and economic results of the existing social enterprises.

Measure III.1. Non-repayable financial instruments.

Creating conditions favourable for the establishment of social economy entities which do not conduct an economic activity and social enterprises is among the primary objectives of the Programme. It is particularly important to directly support the establishment of social enterprises and generation of jobs for people remaining outside of the labour market. Considering the above, the following measures will be undertaken:

1. Providing grants for creation of jobs in social enterprises and other entities, and partially financing their functioning under integration activities and in the field of public benefit activities. Funds to be spent for this purpose should be specified as a percent of expenses within the labour market system and support for disabled people (the Labour Fund and the State Fund for Rehabilitation of Disabled Persons). This calls for such activities as:

a) comprehensive unification of legal regulations (regulations on promotion of employment and labour market institutions, on professional and social rehabilitation, on employment of disabled people) and start-up financing of undertakings intended to create jobs in social enterprises, also

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those carried out by people finishing their education at the last year of studies or vocational schools, including consultancy and transitional support throughout the first twelve months of functioning.

b) combining financial support for establishment of social enterprises with training ( including occupational training), individual monitoring which is granted at the stage of establishing an enterprise and during the first six months of its functioning, and transitional support which facilitates the functioning of an enterprise within the first twelve months of its existence,

c) offering grants by poviat employment agencies which, in accordance with public benefit regulations, can contract this task to entities providing social economy development services, and offering consultancy and training support by institutions providing social economy development services which will be also obliged to monitor the social enterprises that received the grants continues to function,

d) agreeing the level of support for the establishment of social enterprises in regional programmes for social economy development by estimating, in cooperation with poviat governments, the minimum amount of funds required to co-finance the creation of jobs in PES using funds from the Labour Fund and the State Fund for Rehabilitation of Disabled Persons. The support should guarantee the creation of at least 5–10 jobs a year. To implement this solution, the funds for establishment of social enterprises and support for social economy entities must be planned in poviat PUP budgets. This activity will be supported with additional EU funds, depending on the level of activity of a given PUP,

e) co-financing the process of establishing and functioning of social economy entities or provision of services in the field of social and occupational rehabilitation or occupational and social reintegration by social economy entities which are not social enterprises. One of the conditions allowing to obtain the co-financing should be meeting of quality standards for this type of services set forth in the act on social employment and other regulations.

The voivodship government will be able to contract accredited institutions which provide social economy support services to assure co-financing for job creation, which, at first, will have the form of a pilot task.

2. Allowing investment support to social enterprises and social economy entities, especially by covering the costs of renovation of real estates and purchased fixed assets which give new development opportunities, as required by the local social policy.

3. Developing principles of efficiency-related assessment for granting funds. The manner of granting and using the funds should be associated with the effects of activities declared by a given social enterprise; additional funds, promoting effectiveness, should be granted only to enterprises which achieved the previously specified objectives. In the future, when relevant and reliable methods of measuring the social added value of social enterprises are established and widely used, it is advisable to apply such methods as a criterion for granting and settling funds.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.3.

Indicative sources of financing Within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security (1 – within the scope related to unification of legal regulations);the Labour Fund (1 – within the scope related to the creation of jobs in social economy entities/social enterprises); State Fund for Rehabilitation of Disabled Persons (1 – within the scope related to the creation of jobs in social economy entities/social

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enterprises); Regional Operational Programme, Objective 9., Investment Priority 9.8. (1 – within the scope related to the creation of jobs in social economy entities/social enterprises); Regional Operational Programme, Objective 9., Investment Priority 9.3. (2); Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9., Investment Priority 9.8. (3); budgets of local government units (1e).

Coordination Minister competent for social security,Voivodship government.

Measure III.2. Repayable financial instruments.

The primary instrument of support for the existing social enterprises within the scope of conducting an economic activity should be a system of repayable financial instruments, namely loans and guarantees. Considering the above, the following support will be offered:

1. In the period 2013–2015, a pilot loan programme will be implemented to test new methods of social enterprise financing. These measures will be implemented through five macro-regional loan funds. The aim of this pilot programme is to test new procedures and functionality of the future loan and guarantee programme;

2. After the evaluation in 2014, in 2015 a financial instrument will be created (the State Fund for Social Entrepreneurship) to grant loans and, separately, guarantees. This instrument will be financed from the European Social Fund and from private funds. The Fund will allow the use of various repayable instruments, such as:57

short-term loans (up to 2 years) for liquidity assurance (e.g. transitional, for assignments, etc.) medium- and long-term loans (up to 5 years) for development, investments and asset building; subordinated loans (up to 5 years) for increasing own funds; social capital fund – social venture capital; guarantees; re-guarantees for the obligations of guarantee funds guaranteeing credits taken by social

economy entities which have the status of a micro, small or medium enterprise.

The entity implementing the financial instrument will select financial intermediaries (banks or existing regional loan and guarantee funds) in each of the 16 voivodships, as provided for in the implementation act for 2014–2020. The intermediaries will be responsible for the distribution of repayable financial instruments; moreover, each of the intermediaries will be entitled to funds to provide support to social enterprises for 2–3 years, in accordance with the submitted application. There can be a few financial intermediaries in one voivodship or one intermediary may cover a few voivodships. In particular, the Fund will support activities which involve additional private funds.

3. The establishment and testing of innovative forms of financing social economy entities and social enterprises, e.g. loan cooperatives, mutual guarantee funds, etc., created on the local and regional level by social economy entities, local government units and private entities, will be supported. The support will cover, in particular, activities engaging additional private funds.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.3.

57 The instruments listed above are just examples and they might be modified in the course of measure implementation.

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Indicative sources of financing Human Capital Operational Programme, Priority I, Measure I.4. (1); Operational Programme Knowledge, Education and Development for 2014–2020, Objective9., Investment Priority 9.8. (2, 3) within the scope resulting from the financing gap research;private funds (2, 3).

Coordination Minister competent for social security,.

Measure III.3. Social economy and social enterprise support services.

The development of the social economy requires continuous consultancy, training and animation support which must be provided on various levels, depending on the needs of social economy entities or social enterprises. Therefore, the new support system, inspired by the experiences from the current programming period (2007–2014), will be based on financing the support services of the social economy and social enterprises. The services should comprise three modules implemented by one institution or a few institutions. However, it is required to contract an entire package of services (by one entity, consortium or partnership comprising a few institutions) for a given subregion. A system of services, which must be complementary on the voivodship level, would comprise the following modules:

1. Local animation services. Every discussion on the development of the activity of the local social economy starts with stimulating civic participation within a socially responsible territory. This requires animation-targeted activities which will allow the creation of civic entities, support their development, allow the establishment of civil-public partnerships to facilitate the development of the social economy and social participation. Entities providing such services should not only undertake animation, education and integration activities, but also prepare and support local animators who will develop these activities. The animation- and facilitation-targeted activities would be indicated as significant components of Community-Led Local Development support provided for in measure IV.3. of the Programme.

2. Social economy development services. This component refers to the activities intended to initiate the creation of new social entities and enterprises, including training and individual and group consultancy. In this case, the basic service would be providing education on the possibilities of establishing social enterprises and preparing founding groups. An important element of social economy development services would be close cooperation with poviat employment agencies which will have funds for job creation or retrofitting of work stations. Thanks to the cooperation, all people willing to establish a social enterprise would be directed by PUP, OPS, PCPR, Rural Advisory Centres to entities providing social economy development services. Prepared founding groups of social enterprises will be entitled to apply to the starost for funds for the establishment thereof; the funds would be provided by the Labour Fund or PFRON. The poviat government (or voivodship government) will be able to contract the task of providing co-financing for job creation to these entities, which, at first, will have the form of a pilot task. Centres which provide social economy development services should use the incubation and pre-incubation tools as well as trial establishment of enterprises as a part of incubation, and offer tutoring by traditional entrepreneurs, especially those from industries in which a given entity is planning to operate.

3. Support services for the existing social enterprises. The entity implementing this module must have managerial skills (in the scope of finance, taxes, strategic planning, marketing, human resources) and social skills (building a wide cooperation network within local partnerships). In order to develop these skills, a specialised system is required to provide social entrepreneurs with knowledge and develop their skills at the stage of establishing and functioning of a social enterprise. The system should also support social enterprises by offering them legal, business and financial consultancy services. The services may also encompass additional support for implementation of innovations or development plans. This type of services should be closely related to the regional operators of the State Fund for Social Entrepreneurship within the scope of loan advisory services.

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Since 2014, services supporting the social economy and social enterprises would be accredited in the AKSES system (a system of accreditation and operating standards for social economy support institutions58). Separate expected action results will be assigned to every level of services. In order to obtain such accreditation, entities will have to meet formal conditions, obtain recommendations from a team of experts analysing training and advisory programmes, the expected results, skills and stability of the personnel employed by the entities providing services. The accreditation will certify that the criterion of access in the Regional Operational Programmes has been met.

Advisory and support services will be financed within the scope of a minimum package indicated in the accreditation system, which will be regularly verified by auditors of the State Secretariat foe Social Economy in cooperation with Regional Centres for Social Policy. The financing of local animation services, social economy development services and services supporting the existing social enterprises would be a part of the voivodship government’s activities and would be ensured by concluding contracts with entities while assuring complementarity of actions in the voivodship. Entities can conduct additional activities exceeding the minimum scope of advisory and support services. Such activity may be conducted as a paid public benefit activity, economic activity or as outlined in the project prepared by the voivodship government. If the quality standards are not met, a new service provider whose services comply with the standards will be selected.

Legal regulations on the manner of providing services, their systematic financing principles, relations between entities providing such services and public institutions, including the cooperation with poviat employment agencies, will be set forth in a chapter of the act on social enterprises.

4. Support will be also granted for activities intended to create innovations in the field of the social economy and social entrepreneurship. Social economy development will not be possible without continuous improvement of the efficiency of used solutions and development of new solutions combining practical experience with theoretical knowledge or without cooperation with the academic and business circles.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.3.4.

Indicative sources of financing Budgets of local government units (1, 2, 3);Regional Operational Programmes, Objective 9., Investment Priority 9.8. (1, 2, 3); Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9., Investment Priority 9.8. within the scope of innovation (4).

Coordination Minister competent for social security,voivodship government.

Measure III.4. Supporting the development of the social economy cooperation and partnership network.

What underlies the social economy, social enterprises and their development is common action which is a basis of creating economic franchise, cluster and partnership relations between social enterprises. Business and inter-sectoral partnership should always be the basis on which the social economy develops. Considering the above, the following tasks will be supported:

58 Accreditation activities are conducted by the Accreditation Committee established by the Regulation no. 13 of the Minister of Labour and Social Policy dated 21 March 2014.

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1. Extensive education on inter-sectoral cooperation and establishment of local partnerships in consideration of the essence of the social economy; such education is addressed to public institutions, social enterprises, NGOs, the business sector and local community leaders, especially in rural areas; supporting the development of corporate social responsibility in traditional enterprises targeted at cooperation, supporting and developing the social economy.

2. Implementing and popularising quality marks and other programmes which promote responsible consumer behaviour, organising individual, business, promotional and educational campaigns intended to create a positive image of the social economy among consumers, and indicating benefits resulting from purchasing from this sector.

3. Organising fairs, supporting participation in fairs and economic missions for social entrepreneurs targeted at cooperation with traditional business entities, other social enterprises and local government units.

4. Developing social franchise based on local cooperation relations with the participation of social entrepreneurs.

5. Building cooperation relations and supporting transfer of innovation between higher education institutions, the science sector, traditional enterprises and social enterprises.

6. Activating business administration and MBA programmes for people managing social enterprises.

7. As the mechanisms of initiation, establishment and functioning of cooperation bonds are created at the local level, which includes social enterprises, support will be granted to methodical and animation-triggered inclusion of social enterprises into the existing and initiated cooperative undertakings (among others, identification of market niches), including, in particular, cluster initiatives:

a) in the field of activating local groups and developing rural areas, the social economy is supported by stimulating the establishment of partnerships and common initiatives. Thematic villages, e.g. in Warmińsko-Mazurskie and Zachodniopomorskie Voivodships are a great example of the above.

b) initiatives incorporating the cooperation with the national network of services for SME in order to support the establishment and functioning of social enterprises in a manner complementary to OWES, and using cooperation with Rural Advisory Centres and their field structures to support the establishment and functioning of social enterprises in rural areas,

Recommendations on the possible cooperation of Rural Advisory Centres and entities providing support services for social economy entities and social enterprises will be proposed in cooperation with the Minister of Agriculture and Rural Development.

c) using the potential of Local Action Groups, Fisheries Local Action Groups and CLLD operators (community-led local development) as well as Integrated Territorial Investments as social economy animators in rural areas; establishing Local Partnership Forum within the State Committee for Social Economy Development. The Forum’s task will be to promote the concept of partnership, support cooperation between partnerships, collect and disseminate knowledge on the existing partnerships.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.3.4.5.6.7.

Indicative sources of financing Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9, Investment Priority 9.8. (1, 2, 4);Operational Programme Knowledge, Education and Development for 2014–2020, Objective 8, Priority 8.9. (6);Regional Operational Programmes, Objective 1., Investment Priority 1.2.

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(5); Objective 3, Investment Priority 3.2 (3); Objective 9., Investment Priority 9.8. (2, 7 – within the scope of supporting network establishment, promotional campaigns and regional quality marks).

Coordination Minister competent for social security,minister competent for economy, voivodship governments.

Expected results of Priority III

Results of Priority III within the scope of establishing financial and advisory support infrastructure, animation, development and functioning of social enterprises and legal environment contribute to the fulfilment of Objective II Environment, which will allow the generation and maintenance of 35 thousand jobs in social enterprises. In a larger perspective, the establishment and stable functioning of social enterprises is not possible without a comprehensive support system. The results will also impact the process of achieving result I by allowing the creation of new jobs in fields preferred by self-government communities.

Measure III.1. using financial support to generate 38.6 thousand jobs in social enterprises, 35 thousand of which will be permanent;

Measure III.2. activating 16 financial intermediaries for the loan and guarantee fund, covering all voivodships;

supporting 1500 social enterprises and social economy entities by providing loans under the designed support system;

activating the guarantee and re-guarantee system;

Measure III.3. developing the concept of social economy support service network financed from ROP by 2014 in every voivodship;

establishing a social economy support service network accredited by the Minister of Labour and Social Policy in every voivodship by 2015;

Measure III.4. 50% of social enterprises will function in a local partnership, franchise or a cooperation network.

Priority IV. Incorporating social economy into the mainstream public policies on the national and regional level.

The development of the social economy on the national level depends on integrated measures implemented horizontally on a level of various government administration institutions and, in the vertical perspective, on coordination of national, regional and local measures. The activities currently being undertaken by various institutions, which are financed from state and EU funds, must be coordinated to significantly increase their quality. Priority IV encompasses the following measures (directions of interventions):

Measure IV.1. Coordination of social economy policies on the national level.

The past experience shows that the coordination of actions related to the social economy, undertaken within various sectoral public policies, is insufficient. It is caused by, among others, the lack of a robust centre which would be responsible for such coordination in the government structures and lack of mechanisms which would assure coordination and cohesion of these activities. This lack of institutionalisation also hinders the coordination of activities in the public and civic sector. Considering the above, the following tasks will be undertaken:

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1. The State Committee for Social Economy Development59 will be established as the key instrument for cohesion of public policies related to the social economy. Half of the Committee’s staff will be composed of voivodship representatives and representatives of departments and offices responsible for the implementation of state policies in the fields which are crucial for the social economy, while the other half will comprise representatives of the social economy sector. The Committee’s tasks will include:

a) coordinating activities in the field of the social economy on the national level,b) making strategic decisions related to KPRES implementation based on annual reports on the

condition of social economy and the mid-term review in 2017,c) accepting annual reports on KPRES implementation and the condition of social economy in

Poland,d) creating and monitoring activities to be undertaken in favour of innovative projects and scientific

research in the field of the social economy,e) initiating changes, supervising the implementation and monitoring the social economy

development programme,f) issuing opinions and recommending strategic programme, legislative and financial proposals in

relation to the social economy,g) reviewing the implementation of provisions of the development strategy and programmes and

issuing opinions on the required modifications to development strategies or programmes in relation to the social economy,

h) indicating candidates from the social economy sector for consulting and monitoring bodies within the operational and development programmes.

2. Establishing the State Secretariat for Social Economy in the structures of the Ministry of Labour and Social Policy as an organisational unit (a division) in the Department of Public Benefit. The Secretariat will be responsible for:

a) coordinating actions undertaken by public administration, addressed to the social economy sector. KSES’s task will be to initiate and promote activities related to the social economy, assure that tasks related to the social economy undertaken under various sectoral and regional policies are cohesive, and cooperate with voivodships.

b) undertaking activities for the State Committee for Social Economy Development by implementing decisions and applications of the Committee, preparing public tasks related to, among others, accreditation and innovation-related activities,

c) undertaking activities for the social economy sector by assuring quality of the support system (accrediting entities which provide services for the sector), creating a friendly legal environment and stimulating the development of financial instruments. KSES will also be responsible for monitoring, collecting, disseminating and generating knowledge, and initiating public debates on the place of role of the social economy in public policies,

d) undertaking activities for participants of KPRES implementation, in particular regions, in the form of training and development consultancy services, establishment of a database allowing to collect and present monitoring and evaluation data, making such data available, and providing support within the scope of preparation, monitoring, evaluation and management of regional plans.

3. Selecting, by way of a competition or a tender, an innovative entity acting as a non-profit company or cooperative of legal persons whose shareholders are NGOs (with the participation of MPiPS in the supervisory body), which carries out activities resulting from the obligations related to the support of regional activities. The entity would provide services related to the implementation of innovative activities, accreditation, consultancy and education to regions, and services related to commissioning public tasks in the field of services for social enterprises.

59 The Committee will be inter-ministerial/inter-sectoral in accordance with the order of the Prime Minister. It will be a continuation of the Team for Systemic Solutions in the field of Social Economy established by the order of the Prime Minister no. 141 dated 15 December 2008. The Committee’s financial matters will be managed by the Ministry of Labour and Social Policy.

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2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.3.

Indicative sources of financing Within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security (1, 2, 3);Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9., Investment priority 9.8. (1, 2, 3).

Coordination Minister competent for social security.

Measure IV.2. Coordination of social economy policy on the regional level.

Due to the growing significance of regions in the process of creating the development policy, it is important to incorporate the social economy policy in the voivodship-level activities, as many crucial programme, organisational and financial decisions will be made at this level. Therefore, the following tasks will be fulfilled:

1. Incorporating the social economy in voivodship development strategies in fields related to the labour market, social integration, entrepreneurship and innovation development which allow regional development of the social economy; the implementation of the strategy provisions will be analysed on an on-going basis at the voivodship level and by the State Committee for Social Economy Development.

2. Developing, implementing and monitoring regional programmes for social economy development for 2014–2020 in cooperation with key interested parties; the programmes specify actions to be undertaken by public authorities in relation to (in particular):

a) institutionalising the management of social economy development process(the issue of a regional committee for social economy, forum for cooperation with social economy entities, responsible institutions),

b) basic directions of the social economy sector’s development preferred in the financial support – within the scope of professional integration, social integration and available social services. The directions should result from the needs diagnosed in a given voivodship in the fields specified in Priority I. These directions may be based on promoting particular types of activity (promotion, education), preferring establishment of entities in particular areas (access criteria and strategic criteria in operational programmes financed from the EU finds, strategic criteria for access to the state funds from the Labour Fund and PFRON), encouraging poviat and commune governments (creating local maps of needs in the area of public benefit services, local partnerships with self-governments),

c) creating the target network of services supporting the social economy and social enterprises in a voivodship,

d) designing mechanisms of cooperation between voivodship governments, poviat and commune governments in the scope of the social economy (the role of commune and poviat strategies, local partnership as the foundation of development), contracts concluded by voivodships and local governments to finance local activities, including activities undertaken under CLLD,

e) specifying the principles and forms of cooperation for the social economy between various institutions which may impact its development in the region, including ROPS, WUP, and institutions which manage and implement programmes financed from the EU funds,

f) preparing a concept of promoting the social economy in the voivodship through the official and unofficial education system for children and youth, and the official and unofficial education system for adults.

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The programmes should have a cohesive and logical structure of objectives and expected effects, and relevant product and result indicators. Moreover, the programmes should specify what financial resources are necessary to fulfil their objectives and achieve the results, including state funds (from local governments, special purpose funds and the state budget) and EU funds. The programmes must describe the management system and annual effect monitoring which will encompass annual reports on the condition of the social economy in regions. Entities responsible for the preparation and implementation of programmes on behalf of voivodship governments will be Regional Centres for Social Policy.

In 2014, the multi-annual regional action plans for promotion and popularisation of the social economy prepared by ROPS will be transformed into regional (voivodship) social economy development programmes and supplemented as indicated by the presented elements. The above particularly refers to the financial scheme.

3. Establishing Regional Committees for Social Economy Development which will coordinate voivodships’ actions in the field of the social economy; the committees will be composed of representatives of voivodship government, local governments and the social economy, science and business sectors60.

4. Designating an entity that will be responsible for coordination of activities related to the social economy in the voivodship, i.e. the Regional Centre for Social Policy. The centre will coordinate actions undertaken by public authorities in the field of regional programme implementation and specify the directions, preferences and support procedures for the social economy and social enterprises under Regional Operating Programmes.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.3.4.

Indicative sources of financing Voivodship government budgets (1); Human Capital Operational Programme, Priority VII, Measure 7.1.3. (2) until June 2015;Regional Operational Programme, Objective 9., Investment Priority 9.8. (2, 3, 4).

Coordination Voivodship governments.

Measure IV.3. Self-organisation of the social economy.

Self-organisation of this sector is an important element of social economy development as it facilitates the representation of social economy entities in the territorial and sectoral dimension, and construction of a self-control system with respect to activity standards. Considering the above, the following tasks will be fulfilled:

1. Supporting strong representation of social enterprise and social economy’s environment, as partners of public administration and business, through legal regulations and institutional support at the national and regional level.

2. In cooperation of the social economy sector, specifying the principles of representation of the sector and clear principles of consulting public activities with this sector.

3. Supporting activities in favour of self-organisation and federalisation of the sector, including, in particular, the future Chamber of Social Enterprises, national and regional meetings and other cooperation platforms, consultancy and promotion.

60 The Regional Committee for Social Economy Development will be established by a resolution of the voivodship management, It wil be financed from the ROPS budget or from other sources specified by the voivodship government.

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4. Supporting the establishment and functioning of an information exchange platform to strengthen network connections inside the sector, including websites and press publishing houses.

5. Supporting bottom-up systems of quality marks and certificates targeted at increasing the quality of services and products of social economy entities and social enterprises, and establishing the quality mark: Gmina/powiat przyjazna/y ekonomii społecznej [Social Economy-Friendly Commune/Poviat] pursuant to the criteria set by public authorities and representation of the sector.

2014 2015 2016 2017 2018 2019 2020

Deadline for task fulfilment 1.

2.

3.

4.

5.

Indicative sources of financing Within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security (1, 2);

Operational Programme Civic Initiative Fund (3);

Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9., Investment Priority 9.8. (4, 5).

Coordination Minister competent for social security.

Measure IV.4. Monitoring the social economy.

Proper implementation of the social economy policy requires comprehensive and constantly up-dated knowledge on the condition of the sector, its surrounding and relations between the public, social and private parts of the sector. Assuring the access to reliable data and analysing the sector’s condition will be the basis of the public policy in this field. Therefore, the following tasks will be fulfilled:

1. The National Secretariat for Social Economy will maintain a knowledge repository which will contain research results, research tools, reports etc. on the basis of data collected by KSES and obtained from GUS and ROPS.

2. Constantly monitoring the social economy and social enterprises within the scope of the dynamics of the sector’s development, the achieved economic objectives and activities in the social area, and activities undertaken by public entities in favour of the social economy. The monitoring will encompass:

a) continuous monitoring of the quality of available data on the condition of the social economy sector,

b) systematic and on-going collection of output statistical and administrative data on the condition of the social economy sector by KSES,

c) analysing the collected data and publishing them at least once a year in the form of a report summarising the condition of the social economy sector and progress in Programme implementation, stating conclusions and recommendations,

d) building an information system within KSES and ROPS to collect, process and disseminate data using the data collected under OP KED and ROP.

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3. Conducting research on the condition of the social economy sector and assessing the public policy implemented in this region by:

a) developing and disseminating a research methodology regarding the social economy sector, including measuring social impact,

b) conducting research ordered by the State Committee for Social Economy Development and the State Secretariat for Social Economy,

c) conducting statistical survey in compliance with the statistical confidentiality principles,d) implementing permanent mechanisms of measuring the social impact of social enterprises and

the level of the socio-economic capital in the social economy,e) preparing and publishing reports in Poland and abroad which summarise the effects of conducted

research and surveys on the development of the social economy; supporting the development of databases and industry catalogues of the social economy and social enterprises, and similar tools which provide data on the sector,

f) promoting the social economy and social entrepreneurship among the scientific staff, including young scientists, by organising competitions for the best research study, scholarships for PhD students and academic researchers.

The actions described above will be carried out in consideration of the recommendations included in the Communication from the European Commission “Social Business Initiative”61. One of the basic needs is fast and easy access to the existing information on social enterprises which will facilitate the exchange of experiences to ensure dissemination of best practices. This particularly refers to the need of funds for tools allowing the assessment of activity impact and use of this impact (e.g. by basing on the experiences of some European Union Member States, which opened satellite accounts allowing to gather statistical data on social enterprises). In further perspective, supporting the research on the nature and socio-economic impact of social entrepreneurship, in particular co-financing of national projects for the establishment of satellite accounts allowing the inclusion of social enterprises in the System of National Accounts should be considered.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.3.

Indicative sources of financing Within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security, President of the Central Statistical Office and Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9., Investment Priority 9.8. (1);Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9., Investment Priority 9.8. (2, 3).

Coordination Minister competent for social security.

Expected effects of Priority IV

The effects of Priority IV within the scope of establishing a system of coordination of public policy in relation to the social economy at the central, regional and local level, supporting the development of self-organisation of the social economy sector and an efficient monitoring system are conducive to the achievement of Operational Objective 3 Leadership, whose primary result is the increase in effectiveness of management and coordination mechanisms in the field of the social economy support policy. They also contribute to the fulfilment of Objective 1 which should strengthen the bonds between social economy entities and local communities.

Measure IV.1. establishing the State Committee for Social Economy Development and the

61 Communication from the European Commission Social Business Initiative. Creating a favourable climate for social enterprises, key stakeholders in the social economy and innovation COM(2011) 682, [SEC(2011) 1278].

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State Secretariat for Social Economy within the Department of Public Benefit in MPiPS by the end of 2014;;

by the end of the first quarter of 2015, a non-profit entity established by civic organisations will be selected to take over the tasks related to accreditation of services, coordinate activities in the scope of innovation and consultancy for the social economy as the institution implementing the National Operating Programme for the social economy;

Measure IV.2. establishing a division for coordination of actions in the field of the social economy in voivodships in every Regional Centre for Social Economy by the end of 2014;

implementing regional programmes for social economy in every voivodship;

Measure IV.3. establishing the Chamber of Social Enterprises by 2015;

annual Polish Social Economy Meetings;

creating the condition in which at least 40% of PES will be in at least one networking organisation;

Measure IV.4. establishing a uniform social economy research system in consideration of the assumptions of Strategy of public statistics research development in the field of the third sector and social capital [Strategia rozwoju badań statystyki publicznej w zakresie trzeciego sektora i kapitału społecznego] and Directions of development of Polish public statistics by 2017 [Kierunki rozwoju polskiej statystyki publicznej do 2017 r.] by 2018;

preparing six reports on the development of the social economy.

Priority V. Education for the social economy.

The social economy is still a new phenomenon in Polish social and economic life; it is relatively poorly rooted in the social awareness and remains practically unknown to the average citizen, decision-maker or businessman. Those who have heard of it often have a false image of the social economy and often associate it with a form of social assistance or social employment. Therefore it is necessary to popularise this concept in the collective awareness and to build a robust, positive brand of the social economy. At the same time, the development of the social economy requires many skills, both occupational and social, not only from persons engaged in the establishment of social enterprises, but also from the general public. Particular importance is attributed to trust, ability to cooperate with others, actively influencing one’s own environment and entrepreneurship. These skills should be developed by means of formal and informal education. Within this scope, all experiences and the entire potential of the Education Group of the Team for Systemic Solutions in the field of Social Economy should be used.

Measure V.1. The social economy as a concept and cultural identity.

The social economy’s tradition in Poland dates 150 years back and it constitutes a significant part of Polish cultural and historical heritage. Due to the risk of depleting social capital, which also comprises cultural identity, the social economy may not develop without taking account of the past. Therefore, it is important to popularise the tradition and basic principles, such as social solidarity, community, cooperation and entrepreneurship. As the development of the social economy depends on popularisation of these principles in the community, the following activities will be supported:

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1. In cooperation with self-government organisations, preparing and conducting national, regional and local informational campaigns of the social economy, which will promote its idea, create a positive image of the social economy and shape the consumers’ attitude. The above includes competitions for self-governments acting in favour of the social economy and traditional entrepreneurs engaged in its development.

2. Developing and implementing national, regional and local programmes about/for the social economy in the informal education system delivered by NGOs, local governments, labour market institutions, cultural institutions or mass media; the programmes are to be addressed to children, young people and adults, local governments, NGOs and the business sector.

3. Supporting historic research and publications on Polish tradition of the social economy and supporting social initiatives recalling these traditions.

4. Promoting the inclusion of Polish social economy tradition in the current project activities which show social continuity of civic actions.

5. Supporting educational activities related to the dissemination of Polish social entrepreneurship heritage addressed to children and youth.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.3.4.5.

Indicative sources of financing Within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security (1, 2, 3, 4, 5); voivodship government budgets (4); poviat and commune government budgets (4); Regional Operational Programmes, Objective9., Priority 9.8. (4, 5 – as a part of comprehensive educational projects).

Coordination Minister competent for social security,voivodship government.

Measure V.2. Educational activities for local groups.

The current educational activities are largely focused on training courses addressed exclusively to employees of employment offices or social welfare centres. However, even high efficiency of such training will not assure action opportunities, if no information is addressed to local politicians (councillors and management board members). Past experiences show that the best effects are brought about by addressing the educational activities to local politicians. Local authorities’ understanding of a given issue often leads to including the desired provisions in social problem solving strategies, economic development strategies, cooperation programmes and current city, commune or poviat policy implementation in favour of the social economy development. Considering the above, the following tasks will be supported:

1. Developing the support system (training sessions, consultancy, animation, etc.) addressed to members of Poviat and Voivodship Employment Councils, Commune, Poviat and Voivodship Public Benefit Activity Councils, mayors, presidents of cities and starosts, management of commune auxiliary units and members of the social policy and economic development committees in communes, poviats and voivodships.

2. Developing the support system (training sessions, consultancy, animation, etc.) addressed to commune, poviat and voivodship governments and youth councils, which will be delivered in cooperation with self-government organisations.

2014 2015 2016 2017 2018 2019 2020

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Deadline for task fulfilment 1.2.

Indicative sources of financing Operational Programme Knowledge, Education and Development for 2014–2020, Objective11., Investment Priority 11.3. (1 – within the scope of strategic support in LGUs);Regional Operating Programmes, Objective9., Investment Priority 9.8. (1, 2).

Coordination Minister competent for social security,voivodship government.

Measure V.3. Education on the school and academic level.

One of the foundations on which the development of the social economy is based in education of children and youth in the subject of the sector. Educating young people at the stage of occupational pre-orientation to offers them knowledge, skills and, most importantly, information on the principles of conduct and procedures of democratic enterprise management is crucial for further development of the youth. It is at the stage of education when most of the social capital foundations are created and these foundations may become a basis of activity in the social economy sector and broadly defined entrepreneurship. These activities will engage local governments and Voluntary Labour Corps. Therefore, the core curriculum for general education to supplement the curriculum of the subject Fundamentals of Entrepreneurship will be supplemented with information on the social economy and programming of the social economy which can be then used in the implementation of pupils’ educational projects for Civics classes or Civic Education in Local Authority Schools programme(project Young Citizen and others) targeted at developing entrepreneurship in young people.

1. At the beginning, pilot solutions related to education will be implemented as a part of the existing subjects. Materials for teachers, training sessions for methodology consultants will be prepared and pilot programmes will be implemented in selected schools.

2. Revival and development of the concept of pupils’ cooperatives in schools achieved by (among others):

a) activities promoting the concept of pupils’ cooperatives in schools, including competitions for cooperative supervisors, teachers and institutions supporting this form of cooperatives; certifying schools friendly to the social economy and social entrepreneurship,

b) assuring methodological support in relation to establishing and running pupils’ cooperatives on the basis of the experience gained from the implementation of projects under the Operational Programme Human Capital and the Operational Programme Civic Initiative Fund,

c) preparing and popularising programmes which improve teachers’ skills in the field of the social economy and social entrepreneurship; developing solutions which will effectively encourage teachers and pedagogues, i.e. supervisors of pupils’ cooperatives, to develop these cooperatives; at school, cooperatives should have the status of “life workshops” (including the recognition of supervising pupils’ cooperatives as extracurricular activities),

d) developing the support system (training, consultancy, animation, etc.) addressed to teachers at primary schools, gymnasium schools and upper-secondary schools, methodology consultants, teacher training centres, experts indicated by the minister competent for education and training or minister competent for culture and national heritage protection, employees of entities referred to in Article 2 of the Act on the Education System dated 27 September 1991.

e) including the notion of the social economy and social entrepreneurship into the process of training teachers of entrepreneurship and civic studies,

f) organising competitions, tournaments and contests.3. Supporting the organisation of voluntary work, internships and occupational traineeships in entities

operating in the field of the social economy (integration of people participating in education) – measures convergent with Measure II.1.

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4. Cooperation of vocational education with the social economy sector by means of mandatory vocational internships in social enterprises.

5. Supporting the provision of high-quality services by institutions which support students in starting a social business (e.g. academic career centres) on the labour market.

6. Developing the offer of higher education institutions within the scope of fulfilling their mission as a social activity forum by implementing programmes in cooperation with civic organisations.

7. Introducing the subject of social entrepreneurship at economic, tourist and social faculties with particular emphasis on using this subject as an instrument to counteract and combat social exclusion, and as an instrument conducive to the development of local communities and creation of high added value in value chains.

8. Promoting social entrepreneurship and offering substantial and promotion-related support to academic career centres and academic business incubators, and supporting the commercialisation of spin-out and spin-off solutions developed at universities.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.3.4.5.6.7.8.

Indicative sources of financing Within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security (2);Programme Civic Initiative Fund (2, 3);voivodship government budgets (2, 3, 4); Regional Operational Programmes, Objective9., Investment Priority 9.8. (2, 3, 4); Operational Programme Knowledge, Education and Development, Objective 9., Priority 9.8. (1) within the scope of the pilot programme;Operational Programme Knowledge, Education and Development, Objective 10., Priority 10.2. (5, 6); budgets of higher education institutions (7, 8).

Coordination Minister competent for social security, voivodship governments.

Measure V.4. Non-formal education model for children and youth.

Another aspect of educating children and young people in the social economy are informal activities which should involve NGOs, self-governments of all levels and their subordinate establishments, such as education and cultural establishments. In this respect, Poland has good practices which should be disseminated across the country62. This measure is assigned particular significant as establishment of partnerships between NGOs and local government is a condition allowing to reach a large number of children and young people. Consequently, this will translate into the development of social competences, social and civic participation of children and youth, especially in groups at risk of social exclusion. Within this scope, the following solutions will be implemented:

62 The proposed solutions include the Pomeranian model of supporting NGOs which act in favour of children and youth. The model allows general education of children and youth in the social economy, practically reaching almost every poviat and commune. Thanks to the support granted by the Pomeranian self-governments, the model had been implemented as early as during the implementation of the innovation and testing project in Gdańsk and Kwidzyń, in Lęborski Poviat, Wicko and Cewice communes under the innovative project of the Morena Association.

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1. Introducing a mini-grant system in the form of Regional Youth's Funds which will be available for young people from formal and informal groups, in accordance with the following principles:

a) formalities must be limited to minimum – simplifying procedures, forms and settlement methods, allowing online applications and reporting, etc.

b) raising the social awareness of young people and promoting their participation in every stage of task implementation, e.g. commissions which will grant financial support, composed exclusively of youth leaders,

c) including local governments into the co-financing of local editions of the Youth’s Fund on the voivodship, poviat and commune level,

d) ensuring continuity of activities by supporting training and coaching of youth groups at every stage of mini-projects’ implementation,

e) supporting the dissemination of the best mini-projects’ results – organising competitions to promote the best local youth initiatives at the local, regional and national level,

f) special editions of grant competitions of Youth’s Funds for pupils (youth) enterprises organised for schools and NGOs.

2. Regional Youth's Funds may play an important role in the development of the social economy, provided that they cover the youth from almost all communes. It is possible by assuring support in the form of Youth Centres in most communes.

a) establishing regional, national and commune Youth Centres on the basis of the existing and newly established youth information centres (e.g. the Eurodesk network), Voluntary Work Centres, NGOs, educational and cultural establishments, etc. which allow us to reach children and youth in most communes. Within this scope, the Youth Centres will be supported in:

o implementing the Regional Youth's Fund in the commune/poviat, especially when co-financing is granted from a given self-government’s budget;

o building and updating a database of extracurricular classes for children and youth from a commune/poviat to use the current opportunities in the field of informal education;

o providing informational support to youth organisations and informal groups of youth and youth workers – using the potential and standards of the national youth information system established by Eurodesk;

o incubation- and premise-related support for small/new non-governmental youth organisations and informal groups;

o creating and supporting regional youth websites which, besides publishing youth-related information, will allow systematised dialogue between decision-makers and young people; promoting citizenship by activating an online voting system for student boards and Youth Councils, exchanging training materials for youth leaders, etc.

The tasks specified above should be implemented using support in the form of (among others) multi-annual grants, with particular emphasis on activities organised by partnerships.

2014 2015 2016 2017 2018 2019 2020Deadline for task fulfilment 1.

2.

Indicative sources of financing

Within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security (promotion); Regional Operational Programme, Objective9., Investment Priority 9.8. (1, 2); Budgets of local government units (1, 2).

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Coordination Minister competent for social security, voivodship government.

Expected results of Priority V

The results of Priority V in the field of education are conducive to the achievement of Objective 5 which is intended to increase the level of skills in the society. These results will also contribute to the achievement of Objective I within the scope of improving the skills of members of local RDPP and members of local government committee councils in the social economy. They also allow stimulation of social activity of young people.

Measure V.1. Implementing at least 3 projects a year to develop and popularise the thought of Polish social economy;

Measure V.2. training 100% of members of Public Benefits Activity Councils and 50% of members of commune, poviat and voivodship social policy committees by 2020;

increasing the level of knowledge about the social economy among 30% of local RDPP members, LGU councils and LGU management boards;

Measure V.3. reviewing the core curriculum for general education to check whether there are any possibilities of supplementing the core curriculum of Fundamentals of Entrepreneurship implemented at the 4th educational level with information about the social economy after 2015;

offering post-graduate studies in the social economy in at least 16 higher education institutions;

supporting at least 100 new projects of “trial social enterprises” in Academic Business Incubators or other forms of academic activity within the scope of social entrepreneurship;

Measure V.4. establishing at least 12 Regional Youth’s Funds which will provide support to groups of young people from 90% of poviats and 75% of communes in their voivodships.

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Chapter IVMonitoring the implementation of the National Programme for Social Economy Development63

Monitoring and evaluation are key fields of KPRES implementation which allow us to evaluate the progress in programme implementation, on-going and strategic flexible management of the planned activities, as well as to respond to changes on local labour markets and in a more widely defined environment.

The proposed system of monitoring the social economy development is based on the following assumptions:

standardisation of data and tools;

public data presentation;

supplementation and use of the available data;

the possibility of aggregating, disaggregating and comparing data at each level.

The system is vertical, which means that the basic data from OWES, commune and poviat activities are collected and initially aggregated at the regional level. Then, they undergo final aggregation at the national level. Other data regarding the development of the social economy are collected at the regional or national level, and then transferred to the regions or to the State Secretariat for Social Economy. An inter-sectoral and inter-ministerial team for social economy monitoring will be established in KSES to prepare a database tool which will allow collection, transfer and publication of data, and to perform a basic analysis at the national, regional and OWES levels.

In order to collect and analyse data on the social economy, a tool called Social Assistance Resource Evaluation will be used. The tool collects information via the Central Statistic Application (SAC). This activity requires the database to be supplemented with a section on the social economy and the introduction of an option allowing particular OWES to enter data to the database. This solution has been selected due to its digitalisation and analytical tools, its popularity among social services at the commune and poviat level, and the fact that Regional Centres for Social Policy are obliged to coordinate data collection. It must be emphasised that data on social entrepreneurship and social economy supplement annual reports generated in communes and poviats and increase the level of cooperation between communes and OWES within the scope of data/information exchange . The following conditions must be met in order to base the social economy monitoring on the Social Assistance Resource Evaluation:

the quality and complementarity of collected data must be increased;

the tool must be supplemented and equipped in clear definitions;

the training for people responsible for entering data must be intensified;

sanctions for untimely or not diligent entering of data must be introduced.

Every year, the monitoring data will be used to draft a report on the condition of the social economy as a part of the evaluation at the commune, poviat, OWES, regional and national level. At the national level, KSES will ensure that the basic tools used by regions are standardised in order to ensure data comparability, enable data aggregation and disaggregation. KSES will also maintain a repository of sample tools which may be later used by the regions in their additional research or analyses. It will provide training and consultancy services related to the monitoring and assessment of the social economy for regions and OWES (these tasks may be entrusted or contracted to other entities).

63 Prepared on the basis of solutions developed by the Monitoring and Evaluation group acting under SKES by: Michalina Laskowska – Foundation for Social and Economic Initiatives, Paweł Klimek – Centrum Rozwoju Społeczno-Gospodarczego, coordinator of establishment of standards for incubator Sector 3, Robert Jurszo – Centrum Rozwoju Społeczno-Gospodarczego, Jarema Piekutowski – OWES evaluator, Dawid Zieliński – OWES activity evaluator from Śląsk, Antoni Sobolewski – Stowarzyszenie Czas Przestrzeń Tożsamość [Time Space Identity Association] /Centrum Rozwoju Społeczno-Gospodarczego Przedsiębiorstwo Społeczne Sp. z o.o. (coordinator).

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In order to implement the monitoring process, it is necessary to designate an inter-institutional team responsible for monitoring the development of the social economy in Poland and implementing KPRES. The team should be composed of representatives of public and private entities which collect data on the social economy, including, in particular, representatives of GUS, MF – tax administration, MS/KRS, the National Cooperative Council, MG, ZUS, ROPS and the social economy sector (e.g. SKES).

Within six months as of adopting KPRES, the team together will all interested parties will:

draft a detailed description of the monitoring system for the social economy and KPRES, which will also include a description of tasks assigned to particular institutions;

prepare a final set of indicator which will contain the necessary information (the so-called indicator sheets), e.g. name of the institution collecting data on a given indicator (and possibly the name of the study/report on the basis of which the data are being collected). Each sheet will specify the base and target value.

Appendix no. 1 will be then supplemented with target and result indicators, proposals regarding the GUS’s survey plan; the tool Social Assistance Resource Evaluation will be supplemented as relevant or a new tool allowing to generate reports from the commune to the national level will be developed. Such reports must contain:

clear definitions and messages on the collected data; required levels of control of quality and complementarity of the collected data (also on the application level);

guidelines and instructions adequate to the recipients’ level of knowledge and promotional materials which will motivate people to use the collected data;

an appropriate system supporting the collection of data in the form of training and consultancy services for employees of communes, poviats, ROPS and cooperating institutions;

a proposal of control activities and activities motivating to deliver of good-quality, complementary data on time;

a proposal regarding a system test which will be performed before the system’s implementation;

a design of the system’s critical path.

In order to improve the data transfer, it is necessary to strengthen the cooperation with the National Court Register to make better use of the KRS data, including updating the register with information on non profit companies’ status.

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National levelAt the national level, the entity responsible for monitoring the activities will be the State Secretariat for Social Economy (on its own or under a commission or task assignment). The task will include coordination of monitoring and evaluation activities and supplementation of research conducted by MPiPS, GUS and other entities with the social economy aspect.

The State Secretariat will prepare annual reports on the condition of social entrepreneurship in Poland The report will have an analytical part devoted to secondary data and qualitative data delivered by regions and Social Economy Support Centres. The report will be also based on own research and contain a summary of the implementation of the National Programme for Social Economy Development. It will also list recommended changes in the functioning of the social entrepreneurship and its environment. A report drafted in the following year will describe the progress in implementation thereof. Moreover, the report will contain a benchmarking part on activities undertaken by regions. After the KKRES is adopted, the report will be published on the KSES’ website.

The report will contain:

a description of the general situation of social entrepreneurship in Poland; data on the development of social entrepreneurship in Poland based on the KPRES indicators;

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Collecting basic data on the social economy in cooperation with OWES in compliance with SAC; Preparing annual reports on the condition of the social economy which will be included in the

assessment report + recommendations (implementation of the recommendations in year n+1)

Evaluating the process, quality and effectiveness of support provided to social enterprises, social economy entities and founding groups;

Using standardised tools developed by the Region, KSES; Making current decisions on the basis of the collected data; Presenting monitoring results to regional committees;

Annual report on the condition of the social economy which will be included in the regional assessment report + recommendations (implementation of the recommendations in year n+1);

Standard tools + regular survey + ad hoc surveys; Report presentation and approval at regional committees; Making current and strategic decisions;

Annual report on the condition of the social economy + recommendations (implementation of the recommendations in year n+1);

Using available sources + ad hoc surveys and regular surveys; Making current and strategic decisions + presentation to the strategic team; Approval of the report by the team; Specifying the standards and assumptions of monitoring and evaluation on the national, regional

and OWES level.

STATE

COMMUNE/POVIAT

data on the progress of implementation of regional plans for the social economy; data on the activity of the support infrastructure; a benchmarking comparison of the activities undertaken by the regions and programme

implementation in Poland; an evaluation of social economy entities’ and social enterprises’ durability; recommendations regarding the development of the social economy; a report on the manner of implementing the recommendations from the previous year; a report on KKRES activities.

Additionally, it is recommended that KSES conducts its own research on KKRES’s request:

comprehensive mid-term evaluation in the field of KPRES; every two years, it should conduct a quality evaluation of the selected aspects of social enterprises

and social economy entities’ functioning; every two years it should conduct a quality and effectiveness evaluation of the support infrastructure

(in cooperation with regions); every year, it should evaluate the quality of cooperation or prepare a ranking of cooperation between

self-governments and the social economy sector based on a clear indicator (using the current auto-evaluation tools of the local government or outside quality research). These can be supplemented by a study of the social economy image, perception and quality of cooperation on the local level, application of CSR to support the development of social enterprises, speed of registering social enterprises or information on formal and administrational barriers which hinder the functioning of social enterprises, etc.

These tasks may be contracted, fully or partially entrusted to another entity or fulfilled by MPiPS itself. The above-mentioned activities should include the maintenance of a “wholesale store” of raw data which would be available to regions to allow their own regional and local analyses. Immediately after adopting KPRES, the Strategic Group of the Team for Systemic Solutions in the field of Social Economy will organise a meeting with the main interesting parties in order to specify the method of data collection, frequency of updating the data and manner of making the data available.

At the national level, GUS, within the scope of its statutory tasks, plays an important role in the process of collecting and monitoring data on the social economy.

Regional levelOn the regional level, the voivodship government acting through ROPS will be responsible for monitoring the development of the social economy. The voivodship government will be responsible for collecting data at the regional level, in accordance with standards specified by KSES in the field of monitoring the policy, action plans (minimum assumptions) as well as monitoring and evaluation of activities undertaken by entities which provide services for the social economy. Voivodship governments (ROPS) will also be responsible for the quality and aggregation of data delivered by communes and poviats, and outside evaluation of entities providing services for the social economy. The evaluation should be fully targeted at effectiveness and quality of the support process. ROPS will prepare annual reports on the condition of the social economy in their region and these reports will constitute a part of the Assessment Report. The report should contain:

a description of the general situation of the social economy in the region; data on the development of the social economy in the region based on the indicators set forth in the

regional programme for social economy development and KPRES; data on the progress in implementation of the regional programme for social economy development; a benchmarking comparison of the support infrastructure’s activities (in the entire region); assessment of durability of social economy entities and social enterprises;

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recommendations on the development of social economy; a report on the enforcement of recommendations from the previous year.

It is recommended that the report be supplemented with a database of social enterprises and indicate the areas of their operation.

The report will be accepted by a committee for monitoring of the implementation of the regional programme for social economy development. After the committee approves the programme, it will be published on the voivodship government’s, ROPS’s and KSES’s websites. The voivodship government is also responsible for monitoring the implementation of projects in its region.

The level of entities providing services for the social economyEntities providing support services will monitor their activities using standardised tools developed by ROPS and KSES. Such entities should complement these means of monitoring with auto-evaluation tools. ROPS will conduct an outside evaluation of these entities’ activities. Each OWES will be obliged to draft a report on the monitoring activities and publish it on its website. The report should contain:

a description of the situation of the social entrepreneurship in the area in which the service-providing entity operates;

data on the development of the social entrepreneurship in the area in which the service-providing entity operates;

data on the progress in the implementation of the project under which the service provider operates; a description of other actions undertaken by the service providers, including cooperation with social

partners; results of auto-evaluation.

Commune/Poviat levelLGUs monitor the activities using the „Assessment” tool and the SAC system, on the basis of OPS and PCRR resources. The data must be collected in cooperation with OWES operating in particular communes and poviats.

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Chapter VBasic objectives of the implementation systemImplementation of the National Programme for Social Economy Development requires a series of legal, organisational, financial and educational actions to be undertaken by numerous partners within public administration and civil-public partnership. One of the important elements of this process is coordination of national and regional activities.

A series of legislative activities intended to prepare the legal environment, and organisational activities intended to coordinate public policies of the government administration will be implemented at the national level. These elements will be supported from the budget funds. The programme will be managed by the State Committee for Social Economy Development which serves as a public discussion forum where the directions of programme activities are specified. KKRES will be the political coordinator of all works related to the Programme implementation and it will be composed of representatives of departments responsible for the implementation of state policies in key areas for the social economy and voivodship representatives (half of the composition), and representatives of the social economy sector. The Committee will have a budget for expert’s opinions and reports (within the limit of expenses assigned in the state budget managed by the minister competent for social security and funds from the European Social Fund under OP KED). KKRES will replace the current Team for Systemic Solutions in the field of the Social Economy. The Committee will be backed by the State Secretariat for Social Economy, which be a separate division in the MPiPS department responsible for the social economy. KSES’s task will be to support the Committee and coordinate all works related to the activities undertaken by public administration in the field of the social economy. At the same time, the department will also be a beneficiary of activities related to Objective 9. – Investment Priority 9.8 within the scope of implementing tasks related to state support co-financed from ESF under the Operational Programme Knowledge, Education and Development for 2014–2020.

MPiPS (its department responsible for the social economy, i.e. KSES) will be responsible for fulfilling tasks related to the organisation of accreditation of Social Economy Support Centres, supporting innovative projects, educational, promotional, consultancy and training actions for voivodships, and research-, monitoring- and evaluation- related activities.

Operational tasks will be fulfilled by a non-profit company (or a cooperative of legal persons) whose shares are held by NGOs. The company (or a cooperative of legal persons) will be commissioned to fulfil a given task pursuant to the Act on Public Benefit Activity and Voluntary Work or pursuant to the Act – Public Procurement Law within the scope of executive activities for the minister competent for social security.

An important system element will be a “fund of funds” managed by Bank Gospodarstwa Krajowego. This area of activities should be supported under the national component of the operational programme which supports activities intended to increase the human and social capital, or under the global grant of this programme managed as a civil-public partnership.

A large part of public intervention directions should be implemented in voivodships. As experts in the 2009 OECD report indicated: While it is certainly true that a policy framework for the social economy must respond effectively to regional diversity, it is also true that a common framework that defines the basic parameters of the social economy and its common policy needs, will assist all regions. The response to regional disparity is to 9 design policies for the social economy that will then be integrated into overall strategies of social and economic development developed within the regions. The tendency to separate the social economy into narrow, targeted objectives, severely limits its capacity to adequately respond to those objectives. For the social economy to be

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effective, it has to be part of an integrated strategy for socio-economic transformation. That means that government, at all levels, has to be engaged as a partner, accompanying social economy actors (…)64.

Therefore the most important activities within the proposed public intervention directions will be specified in Priority I and III, which are a part of the regional development policy. They must be reflected in cash flows running through Poviat Employment Agencies, Poviat Family Support Centres and Social Welfare Centres. These activities will be financed from the Labour Fund, State Fund for Rehabilitation of Disabled Persons and local government units. Additional support for these activities will include ESF and ERDF funds granted under the Regional Development Programme. The programme will also support the functioning of the Social Economy Support Centre system accredited on the central level with the participation of the State Secretariat for Social Economy and the Accreditation Committee. Also, state funds will be used to support loan funds (ESF), innovative activities (ESF), educational activities (ESF) and regional streams for start-up for young civil organisations (FIO).

On the voivodship level, the Programme will be managed by Regional Centres for Social Policy in cooperation with regional social economy organisations.

64 Poprawa potencjału integracji społecznej na poziomie lokalnym poprzez ekonomię społeczną. Raport na temat Polski, MRR, Warszawa, December 2009, p. 9.

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Other departments

Voivodship governments/ROPS

National Operational Programme

ESF

Regional Committees for SE

State Committee for Social Economy Development

Non-profit company / cooperative

Chapter VIFinancial Scheme for the National Programme for Social Economy DevelopmentPursuant to Article 17 sec. 1 item 5 of the Act on Principles of the Development Policy dated 6 December 2006, the presented National Programme for Social Economy Development must contain a financial scheme and specify:

sources of financing the programme implementation;

the amount of funds assigned to the financing of programme implementation grouped by priorities;

information on the amount co-financed at the programme and priority levels;

basic objectives of the implementation system.

The Programme implementation will be supported by the following operational programmes and financing sources:

Civic Initiative Fund Programme for 2014–2020, financed from the state budget;

Operational Programme Knowledge, Education and Development for 2014–2020, financed from the European Social Fund;

Regional Operating Programmes, financed from the European Social Fund and the European Regional Development Fund;

Operational Programme Human Capital 2007–2013;

MPiPS’s department programme: „Social Economy 2015–2020”, financed within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security65;

Labour Fund;

State Fund for Rehabilitation of Disabled Persons;

state budget within the limit of expenses imposed on the part of the state budget managed by competent ministers, without claiming additional funds;

budgets of local government units;

private funds (NGOs and banks).

It will also be possible to obtain financing from other sources, e.g. from the Rural Development Programme, which will be identified after the Programme is launched.

It is difficult to prepare the financial scheme for the Programme, as the managing authorities in the scope covered by Regional Operating Programmes will be voivodship governments. Therefore, some expenses, in particular those related to Regional Operational Programmes are presented as a framework and will be flexibly adjusted to voivodships’ needs with the exception of some basic elements which serve as an indicator of result achievement at the national level. Among the regional level expenditures, crucial expenses are listed under Measure III.1., III.3. and IV.2. These should be treated as a reference point while drafting Regional Operational Programmes in order to achieve the national objectives. Regardless of the above, the possibility of co-financing particular tasks provided for in the programme from the EU funds largely depends on the final version of the

65 Expenditures under the department’s programme “Social Economy” are not an additional load to special purpose funds, as they are explain them in detail in order to achieve the set results; they will be financed as expenses planned in budget acts, without applying for additional funds. This means that in order to be activated, they must be included in expense limits for a given budget year specified in the budget act. Possible changes and additional costs for public finance require the consent of the Council of Ministers.

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Partnership Agreement approved by the European Commission and particular operational programmes, including the Regional Operational Programme and the National Operational Programme ESF.

Other funds are not presented as obligatory amounts, but rather indicative sources of financing which, to a smaller or larger extent, should be budgeted. Funds from local government units’ budgets are stated in amounts which constitute 15% of contribution to the implementation of European projects. LGUs’ expenditure for ordered tasks have not been increased as the tasks do not require additional expenses – they are just a different way of spending funds under non-obligatory activities.

The planned expenses are not an additional burden for the special purpose funds, as they are only more precisely specified expenses and are conducive to the achievement of the set results. They will be financed as expenses provided for in budget acts, without the necessity to apply for additional funds. Similarly, budget expenditures will be largely covered by the currently applicable limits, except the necessary costs resulting from Poland’s participation in development activities in order to meet the ex ante conditions specified by the European Commission. This means that, in order to be activated, they must be included in the expenditure limits for a given budget year. All changes and additional costs for the public finance system must be approved by the Council of Ministers.

Priority I encompasses activities related to the animation of local communities, participatory development and development of social economy entities which provide non-economic services of general interest.

The expenditure foreseen for Measure I.1., which is intended to support participatory models of surveying social needs and local planning, amounts to PLN 225 100 thousand, including:

PLN 5 000 thousand from the Operational Programme Knowledge, Education and Development for 2014–2020, Objective 11, Priority 9.3. to finance the preparation and implementation of flexible civil dialogue tools, support projects jointly implemented by LGU and civic organisations within the scope of using public spaces for active citizenship;

PLN 18 850 thousand from Regional Operational Programmes, Measure 9.7. to support the development of legal and civic consultancy;

PLN 10 000 thousand from the Operational Programme Human Capital, Priority V, Measure 5.4.2. to introduce model standards of activity for Commune, Poviat and Voivodship Public Benefit Activity Council and implement the developed model activity in at least 75% active RDPPs;

PLN 171 000 thousand from the Operational Programme Civic Initiative Fund (Priority III) to support projects developing civic education and social skills, establishment of partnerships (including civil-public partnership) and other forms of cooperation conducive to the activation of citizens, and (Priority II) to create conditions for the development of free legal and civic consultancy (Priority III), support the activation of citizens within the scope of community-related matters (Priority II), support the activation of cooperation between local communities and public institutions (Priority II) and to increase the citizens’ impact on public policies (Priority III);

PLN 3 150 thousand from budgets of local government units as their own contribution to Regional Operational Programmes;

PLN 17 100 thousand from private funds (funds of civic organisations as a contribution to FIO projects).

Other measures will be implemented within the current expenditure limit of the minister competent for social security.

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Budget for Priority I

The amount foreseen for the implementation of Measure I.2. is PLN 92 800 thousand:

PLN 4 000 thousand from funds of the MPiPS’s department programme “Social Economy” to train local animators and leaders, and conduct activities supporting the local initiative;

PLN 73 400 thousand from the Operational Programme Civic Initiative Fund (including micro-grants and support for long-term voluntary work, Priority I and II);

PLN 2 000 thousand from the Labour Fund to finance long-term voluntary work, provided there are no formal and legal contraindications;

PLN 6 000 thousand from the Operational Programme Knowledge, Education and Development for 2014–2020, Objective 11., Priority 11.3., to support the development of LGU auxiliary units for social inclusion and job creation;

PLN 7 400 thousand from private funds (funds of civic organisations as a contribution to projects under the Civic Initiative Fund Programme).

The amount assigned for Measure I.3. is PLN 36 000 thousand, including:

PLN 30 600 thousand in the Regional Operational Programme, Objective 9., Investment Priority 9.7. for organising regional educational activities intended to change the manner of conducting public benefit tasks by including the social economy sector through annual and multi-annual programmes of cooperation with civic organisations and entities referred to in Article 3, sec. 3;

PLN 5 400 thousand from local government funds as their contribution to RPO.

The expenses related to developmental activities in the field of social services of general interest are provided for in the financial scheme of the National Programme for Combating Poverty and Social Exclusion 2020.

The programme provides for expenses financed from the ESF under Objective 9, Priority 9.7, for the development of social services of public benefit provided on the local contract basis with the contribution from local government units, and expenses financed from the EFS under Objective 9, Priority 9.7 for system solutions, including the establishment of new standards and implementation the already the developed standards, and innovative projects in the field of general benefit.

Moreover, it should be noted that the activities covered by Priority I are intended to increase the number of tasks contracted to local economy entities financed from local government units’ budgets from the amount of PLN 2 300 000 thousand in 2014 to 3 500 000 thousand in 2020. These funds are not provided for in the financial scheme, because they are treated as a result of the activities. They are not an additional expense to be included in LGUs’ budgets – it is just a different assignment of funds within these units’ own tasks.

Table 6. Forecast regarding LGUs’ funds for contracting tasks under a tender procedure in 2014–2020 (in PLN).

year Expenditure on LGU for tasks commissioned to social economy entities

2014 PLN 2 320 942 264.25

2015 PLN 2 507 411 278.58

2016 PLN 2 703 877 176.61

2017 PLN 2 907 989 097.20

2018 PLN 3 122 627 882.28

2019 PLN 3 345 024 724.03

2020 PLN 3 578 457 392.70

Calculations based on MPiPS data.

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Measure I.4. is assigned PLN 20 000 thousand in order to support innovative projects intended to support the development of social economy activities in the crucial fields of development. The support will be provided under the Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9., Priority 9.8., under Priority axis III: Social innovations and transnational cooperation. Other sources of financing for Measure I.4. are indicative. The preferences as to types of activity and special programmes financed from the Labour Fund pursuant to the act do not have any direct financial impact on the Fund (they only cause its expenditure structure to be changed).

Priority II, which considers legal changes, will be financed from the current funds of the minister competent for social security.

In Measure II.1., KPRES does not refer to the financial results of the Act on Social Enterprises or other regulations. Costs and profits will be calculated in the Regulation Impact Assessment which is will be prepared under a different procedure. However, it is foreseen that under the Knowledge, Education and Development Programme, PLN 300 thousand will be spent on monitoring the provisions of the Act on Social Enterprises from 2016.

In Measure II.2., costs are financed from the budget of the Public Procurement Office, minister competent for social security, Office of Competition and Consumer Protection as part of the Office’s activities, which does not require any additional expenditure.

An amount of PLN 16 000 thousand is an additional fund for Measure II.2.. The amount covers:

PLN 8 000 thousand for training the employees of control institutions, ordering institutions and entities, social entrepreneurs and regional consultants. This amount will be included in the Operational Programme Knowledge, Education and Development for 2014–2020, Objective 11., Investment Priority 11.3. and Objective 9., Investment Priority 9.8. The detailed distribution of this amount into priorities and measures will be presented after the OP KED provisions are specified in detail.

PLN 8 000 thousand which should be included in the Regional Operational Programmes for training to be provided to local government units in regions, including:

o PLN 6 800 thousand from the European Social Fund;

o PLN 1 200 thousand from the LGU budgets (15% contribution).

Priority III refers to the financing of the support infrastructure within the scope of:

financial support for job creation;

loans and guarantees for the existing enterprises;

services supporting the development of the social economy;

projects intended to create innovative environment for the development of the social economy;

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Budget for Priority III

Budget for Priority II

activities supporting networking and development of the social entrepreneurship in the economic dimension.

Measure III.1. The estimates of the support financed to create jobs in a social enterprise are based on the assumption that in every poviat (out of 380 poviats), 5 jobs in social enterprises will be created a year using funds from the national Labour Fund. This amounts to 1900 new jobs a year. By 2020, 13 300 jobs will be created using funds from the Labour Fund. Moreover, PFRON funds will be used to create, on average, 2 jobs in a statistical poviat a year, i.e. 760 jobs a year; this means that by 2020, 5320 new jobs will be funded by PFRON.

In cases when poviats create jobs from national funds, an additional ESF funds limit will be granted to create 5 new jobs in rural poviats and 20 jobs in municipal poviats. This amounts to 2890 a year (5 x 314 + 20 x 66). By 2020, 20 230 new jobs will be created. It was assumed that creation of a job in a social enterprise costs on average PLN 30 thousand, which is covered by co-financing and transitional support.

Therefore, in the period from 2014–2020, it is planned to create the following number of jobs from the following funds: about 13 300 jobs from the Labour Fund, about 5320 jobs from PFRON and about 20 230 jobs from ESF, which amounts to a total of about 38 600 jobs. Assuming that the estimated cost of creating a job is PLN 30 thousand, the expenses from special purpose funds (the Labour Fund and PFRON) will amount to PLN 557 130 thousand within the current and future limits provided for in their financial schemes and PLN 602 700 thousand within Regional Operational Programmes (PLN 512 295 of which is from the European Social Fund and PLN 90 405 000 thousand from budgets of local government units). This amounts to a total of PLN 1 159 830 thousand in 2014–2020.

Figure 4. Estimated number of created jobs in social enterprises established thanks to the ESF support in relation to the number of jobs in social enterprises created using all sources (FP, PFRON, EFS) by voivodships.

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Funds from the EU budget will be utilised at the level of Regional Operational Programmes, Objective 9, Investment Priority 9.8. and will be transferred to poviats, while funds from the national special purpose funds will be transferred, as the algorithm indicates, to the poviat government within the poviats’ limits for active forms of combating unemployment and occupational rehabilitation of disabled people. These proposals are compliant with the principle of poviat’s liberty to use the funds obtained from the Labour Fund and PFRON.

Moreover, within the scope of Regional Operational Programmes, it is estimated that at least PLN 112 000 thousand will be provided for investment grants (Investment Priority 9.3), PLN 95 200 thousand of which will come from ERDF and PLN 16 800 thousand from budgets of local government units.

Measure III.2. The amount foreseen for loans and guarantees is PLN 140 100 thousand; the amount has been estimated in consideration of the gradually increasing number of social enterprises and the following cost items:

1. Social venture capital – a capital support instrument – as a pilot assigned PLN 5 000 thousand. This instrument should generate special-purpose private capital in a similar amount, i.e. PLN 5 000 thousand, which would allow us to support about 150–200 enterprises in 5 years (about. 5–10 entities in the first year of operation – based on European experiences).

2. Loan capital:

Group I – subordinated loans – an average amount of a loan is PLN 45 thousand, scope: PLN 20 thousand – 100 thousand; this is a supplementary form/replacement in relation to the svc. It is estimated that about 250 enterprises will use such loans. The assumed capital is PLN 16 000 thousand.

Group II – short-term loans (working capital) up to 18 months – average loan: PLN 55 thousand, scope PLN 10 thousand – 120 thousand. This instrument is indispensible in the first two years of

81

operation until the entities are “banked”. It is estimated that 2000 (about 400 a year) loans will be granted in 5 years. Provided capital: PLN 20 000 thousand, assuming that the capital turnover may last 7 years.

Group III – long-term loans maturing 5–7 years; average loan amount: PLN 65 thousand, scope 30 thousand –300 thousand. The number of loans granted within 5 years: about 800. Provided capital: PLN 25 000 thousand.

3. The guarantee capital should at least double the access to outside financing. It is assumed that the guarantee and re-guarantee capital should amount to about PLN 32 000 thousand on the national scale. The calculations referred to above were based on the assumption that individual guarantees will be granted up to 80% of the liability incurred by PES, while portfolio guarantees – up to 50% of the incurred liability value.

The distribution of funds among particular types of loans, and between loans and guarantees is indicative. It will be specified in detail after the measure has been launched.

These funds will be included in the Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9, Investment Priority 9.8. and operated by Bank Gospodarstwa Krajowego.

Measure III.2 also provides for the possibility of implementing an innovative project or projects in the field of searching for and creating financial instruments, for which PLN 20 000 thousand support has been foreseen. The support will be provided under the Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9, Priority 9.8, within the Priority Axis III: Social Innovations and Transnational Cooperation. Similarly, measure III.3 provides for PLN 4 000 thousand for a project supporting the development of innovations in the field of the social economy.

Measure III.3. Expenditures for infrastructural services in regions will amount to PLN 354 200 thousand in Regional Operational Programmes, including:

PLN 308 000 thousand from the European Social Fund;

PLN 46 200 thousand from the local government unit’s funds (15% contribution).

The amounts stated above will be used to finance the cost of service provision of 44 to 47 Social Economy Support Centres in voivodships, in accordance with the offers specified by voivodship governments which ensure that all citizens and social economy entities in a given region can use the support services.

Moreover, expenses amounting to PLN 4 000 thousand for innovative projects within the scope of systemic activities supporting innovative activities are foreseen under OP KED.

Measure III.4. The support for the development of the social economy and partnerships will amount to PLN 19 820 thousand.

Activities in the field of extensive education in inter-sectoral cooperation and establishment of local partnerships, supporting the implementation and popularisation of quality marks and other programmes which promote responsible consumer behaviour and supporting social franchise based on local cooperative relations with the participation of social entrepreneurs will be financed from the Operational Programme Knowledge, Education and Development for 2014–2020 (Investment Priority 9.8.) in the amount of PLN 1 000 thousand.

The financing for activities supporting the establishment of cooperative relations, including the support for transferring innovations among higher education institutions, the science sector, traditional enterprises and social enterprises will be delivered under the Regional Operational Programmes (Investment Priority 3.2) and amount to PLN 2 720 thousand from the European Regional Development Fund and PLN 480 thousand from local government units.

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The financing for activities in the field of educating social economy managers will be delivered under the Operational Programme Knowledge, Education and Development, Objective 8, Investment Priority 8.9 and amount to PLN 15 620 thousand. This will allow to educate 2 240 students at postgraduate studies (on average, 20 students per voivodship a year).

Priority IV encompasses expenses related to:

national coordination of activities in the field of the social economy;

regional coordination;

supporting the networking of social economy entities;

monitoring the development of the social economy.

Measure IV.1. Expenditures for the coordination of activities undertaken by regions for the social economy and entrepreneurship. This group encompasses expenses related to the functioning of the National Programme for Social Economy Development (management, evaluation, research), consultancy support for regions (ROPS and OWES) and accreditation costs. These expenditures will amount to PLN 26 000 thousand, including:

PLN 23 000 thousand from the Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9., Investment Priority 9.8., including PLN 8 000 thousand for all issues related to the management, accreditation and evaluation of activities, and PLN 15 000 thousand for consultancy and skill support for regions;

PLN 3 000 thousand within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security, under the MPiPS department programme “Social Economy”.

Measure IV.2. regards regional expenses managing public policies on the voivodship level, networking activities, promotion of cooperation with local government units. The Programme assigns PLN 121 900 thousand for this purpose, including:

PLN 106 000 thousand in Regional Operational Programmes, Objective 9., Investment Priority 9.8.;

PLN 15 900 thousand from voivodship budgets (15% contribution).

Measure IV.3. The amount of PLN 64 000 thousand is assigned to activities networking the social economy sector which are intended to support self-organisation and federalisation of the sector, consulting activities and promotion of activities, supporting the establishment and functioning of information exchange platforms intended to strengthen the network relations inside the sector, including websites and press, supporting bottom-up systems of quality marks and certification intended to improve the quality of services and products delivered by the social economy entities and social enterprises, including:

PLN 32 000 thousand in Regional Operational Programmes, Objective 9., Investment Priority 9.8.;

PLN 30 000 thousand from the Civic Initiative Fund Programme for 2014–2020 under Priority IV;

PLN 1 000 thousand from private funds (10% from PLN 10 million – organisations’ contribution to projects implemented under FIO);

PLN 1 000 thousand within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security, under the MPiPS department programme “Social Economy”.

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Budget for Priority IV

Measure IV.4. covers the monitoring of the social economy and requires about PLN 17 900 thousand, including:

PLN 3 500 thousand at the national level under Operational Programme Knowledge, Education and Development for 2014–2020, Objective 9., Investment Priority 9.8.;

PLN 12 240 thousand from the European Social Fund in Regional Operational Programmes, Objective 9, Investment Priority 9.8;

PLN 2 160 thousand from local government units’ funds (15% contribution).

Priority V of the Programme encompasses education-related expenditures:

The expected expenditure under Measure V.1., the subject of which is the social economy as an element of cultural identity, amounts to PLN 9 050 thousand, including:

PLN 7 000 thousand In Regional Operational Programmes, Objective 9., Investment Priority 9.8.;

PLN 1 000 thousand within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security, under the MPiPS department programme “Social Economy”;

PLN 1 050 thousand from LGU funds (15% contribution).

The expected expenditure under Measure V.2., covering educational support for local groups, amounts to PLN 31 900 thousand, including:

PLN 3 000 thousand in Operational Programme Knowledge, Education and Development, Objective 11., Investment Priority 11.3.;

PLN 27 000 thousand in Regional Operational Programmes, Objective 9., Investment Priority 9.8.;

PLN 1 900 thousand from local government units’ funds.

The expected expenditure under Measure V.3., which regards the issue of school and university-level education, is PLN 170 600 thousand, including:

PLN 100 000 thousand from the European Social Fund within RPO;

PLN 30 000 thousand from the Civic Initiative Fund (Priority II) in relation to pupils’ cooperatives and educational activities; ;

PLN 2 000 thousand within the limit of expenses imposed on the part of the state budget managed by the minister competent for social security under the MPiPS department programme „Social Economy” in relation to activities in favour of pupils’ cooperatives and methodical support for teachers within the scope of social economy issues;

PLN 600 thousand from the Operational Programme Knowledge, Education and Development for the educational pilot programme to be implemented in 2015;

PLN 20 000 thousand from the Operational Programme Knowledge, Education and Development (Objective 10.) for supporting the provision of high quality services by institutions (e.g. academic business incubators) which support students in their attempts to commence an activity on the labour market (including 100 new initiatives) and development of the offer of higher education institutions within the scope of fulfilling their mission as a social activity forum by, for example, programmes implemented in cooperation with NGOs;

PLN 15 000 thousand from local government units as a contribution to RPO;

PLN 3 000 thousand from private funds as a contribution of civic organisations to FIO.

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Budget for Priority V

Measure V.4. relates to the informal model of education of children and young people; it’s financing will amount to PLN 115 000 thousand, including:

PLN 100 000 thousand from the European Social Fund in Regional Operational Programmes, Objective 9, Investment Priority 9.8.;

PLN 15 000 thousand from local government units as a contribution to RPO.

It must be emphasised that the financial scheme for Priority V is a framework scheme and allows to select appropriate activities and specify their allocation under Regional Operational Programmes. All the stated expenses are indicative, i.e. particular amounts under RPO may be utilised as required by particular voivodships, provided that the national results are maintained.

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KPRES financial scheme

Amounts in PLN2014–2020

(in PLN)Amount

from 2014Amount

from 2015Amount

from 2016Amount

from 2017Amount

from 2018Amount

from 2019Amount

from 2020

Priority I 43 414 284 55 914 283 62 914 283 58 914 283 50 914 283 50 914 283 50 914 301 373 900 000

Measure I.1. 31 871 428 36 371 428 31 371 428 31 371 428 31 371 428 31 371 428 31 371 432 225 100 000

LGU budget – 525 000 525 000 525 000 525 000 525 000 525 000 3 150 000

State budget 24 428 571 24 428 571 24 428 571 24 428 571 24 428 571 24 428 571 24 428 574 171 000 000

Special purpose funds – – – – – – – –

Private (national) funds 2 442 857 2 442 857 2 442 857 2 442 857 2 442 857 2 442 857 2 442 858 17 100 000

EU funds 5 000 000 8 975 000 3 975 000 3 975 000 3 975 000 3 975 000 3 975 000 33 850 000

Measure I.2. 11 542 856 13 542 855 13 542 855 13 542 855 13 542 855 13 542 855 13 542 869 92 800 000

LGU budget – – – – – – – –

State budget 10 485 714 11 152 380 11 152 380 11 152 380 11 152 380 11 152 380 11 152 386 77 400 000

Special purpose funds – 333 333 333 333 333 333 333 333 333 333 333 335 2 000 000

Private (national) funds 1 057 142 1 057 142 1 057 142 1 057 142 1 057 142 1 057 142 1 057 148 7 400 000

EU funds – 1 000 000 1 000 000 1 000 000 1 000 000 1 000 000 1 000 000 6 000 000

Measure I.3. – 6 000 000 6 000 000 6 000 000 6 000 000 6 000 000 6 000 000 36 000 000

LGU budget – 900 000 900 000 900 000 900 000 900 000 900 000 5 400 000

State budget – – – – – – – –

Special purpose funds – – – – – – – –

Private (national) funds – – – – – – – –

EU funds – 5 100 000 5 100 000 5 100 000 5 100 000 5 100 000 5 100 000 30 600 000

Measure I.4. – – 12 000 000 8 000 000 – – – 20 000 000

LGU budget – – – – – – – –

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State budget – – – – – – – –

Special purpose funds – – – – – – – –

Private (national) funds – – – – – – – –

EU funds – – 12 000 000 8 000 000 – – – 20 000 000

Priority II 1 142 857 2 476 190 2 536 190 2 536 190 2 536 190 2 536 190 2 536 193 16 300 000

Measure II.1. – – 60 000 60 000 60 000 60 000 60 000 300 000

LGU budget – – – – – – –

State budget – – – – – – –

Special purpose funds – – – – – – –

Private (national) funds – – – – – – –

EU funds – – 60 000 60 000 60 000 60 000 60 000 300 000

Measure II.2. 1 142 857 2 476 190 2 476 190 2 476 190 2 476 190 2 476 190 2 476 193 16 000 000

LGU budget – 200 000 200 000 200 000 200 000 200 000 200 000 1 200 000

State budget – – – – – – – –

Special purpose funds – – – – – – – –

EU funds 1 142 857 2 276 190 2 276 190 2 276 190 2 276 190 2 276 190 2 276 193 14 800 000

Priority III 245 518 571 287 225 237 282 225 237 250 945 237 241 345 237 241 345 237 241 345 244 1 789 950 000

Measure III.1. 165 690 000 184 356 666 184 356 666 184 356 666 184 356 666 184 356 666 184 356 670 1 271 830 000

LGU budget 12 915 000 15 715 000 15 715 000 15 715 000 15 715 000 15 715 000 15 715 000 107 205 000

State budget – – – – – – – –

Special purpose funds 79 590 000 79 590 000 79 590 000 79 590 000 79 590 000 79 590 000 79 590 000 557 130 000

Private (national) funds – – – – – – – –

EU funds 73 185 000 89 051 666 89 051 666 89 051 666 89 051 666 89 051 666 89 051 670 607 495 000

Measure III.2. 26 397 143 47 437 143 42 437 143 13 157 143 3 557 143 3 557 143 3 557 142 140 100 000

LGU budget – – – – – – – –

State budget – – – – – – – –

87

Special purpose funds – – – – – – – –

Private (national) funds 7 440 000 4 880 000 4 880 000 – – – – 17 200 000

EU funds 18 957 143 42 557 143 37 557 143 13 157 143 3 557 143 3 557 143 3 557 142 122 900 000

Measure III.3. 50 600 000 52 600 000 52 600 000 50 600 000 50 600 000 50 600 000 50 600 000 358 200 000

LGU budget 6 600 000 6 600 000 6 600 000 6 600 000 6 600 000 6 600 000 6 600 000 46 200 000

State budget – – – – – – –

Special purpose funds – – – – – – –

Private (national) funds – – – – – – –

EU funds 44 000 000 46 000 000 46 000 000 44 000 000 44 000 000 44 000 000 44 000 000 312 000 000

Measure III.4. 2 831 428 2 831 428 2 831 428 2 831 428 2 831 428 2 831 428 2 831 432 19 820 000

LGU budget 68 571 68 571 68 571 68 571 68 571 68 571 68 574 480 000

State budget – – – – – – – –

Special purpose funds – – – – – – – –

Private (national) funds – – – – – – – –

EU funds 2 762 857 2 762 857 2 762 857 2 762 857 2 762 857 2 762 857 2 762 858 19 340 000

Priority IV 30 200 142 33 266 808 33 266 808 33 266 808 33 266 808 33 267 808 33 264 818 229 800 000

Measure IV.1. 3 285 714 3 785 714 3 785 714 3 785 714 3 785 714 3 786 714 3 784 716 26 000 000

LGU budget – – – – – – –

State budget – 500 000 500 000 500 000 500 000 500 000 500 000 3 000 000

Special purpose funds – – – – – – – –

Private (national) funds – – – – – – – –

EU funds 3 285 714 3 285 714 3 285 714 3 285 714 3 285 714 3 286 714 3 284 716 23 000 000

Measure IV.2. 17 414 286 17 414 286 17 414 286 17 414 286 17 414 286 17 414 286 17 414 284 121 900 000

LGU budget 2 271 429 2 271 429 2 271 429 2 271 429 2 271 429 2 271 429 2 271 426 15 900 000

State budget – – – – – – – –

Special purpose funds – – – – – – – –

88

Private (national) funds – – – – – – – –

EU funds 15 142 857 15 142 857 15 142 857 15 142 857 15 142 857 15 142 857 15 142 858 106 000 000

Measure IV.3. 9 000 142 9 166 808 9 166 808 9 166 808 9 166 808 9 166 808 9 165 818 64 000 000

LGU budget – – – – – – – -

State budget 4 285 714 4 452 380 4 452 380 4 452 380 4 452 380 4 452 380 4 452 386 31 000 000

Special purpose funds – – – – – – – –

Private (national) funds 143 000 143 000 143 000 143 000 143 000 143 000 142 000 1 000 000

EU funds 4 571 428 4 571 428 4 571 428 4 571 428 4 571 428 4 571 428 4 571 432 32 000 000

Measure IV.4. 500 000 2 900 000 2 900 000 2 900 000 2 900 000 2 900 000 2 900 000 17 900 000

LGU budget – 360 000 360 000 360 000 360 000 360 000 360 000 2 160 000

State budget – – – – – – – –

Special purpose funds – – – – – – – –

Private (national) funds – – – – – – – –

EU funds 500 000 2 540 000 2 540 000 2 540 000 2 540 000 2 540 000 2 540 000 15 740 000

Priority V 12 214 285 52 389 282 52 389 282 52 389 282 52 389 282 52 389 282 52 389 305 326 550 000

Measure V.1. – 1 508 332 1 508 332 1 508 332 1 508 332 1 508 332 1 508 340 9 050 000

LGU budget – 175 000 175 000 175 000 175 000 175 000 175 000 1 050 000

State budget – 166 666 166 666 166 666 166 666 166 666 166 670 1 000 000

Special purpose funds – – – – – – – –

Private (national) funds – – – – – – – –

EU funds – 1 166 666 1 166 666 1 166 666 1 166 666 1 166 666 1 166 670 7 000 000

Measure V.2. 4 557 143 4 557 143 4 557 143 4 557 143 4 557 143 4 557 143 4 557 142 31 900 000

LGU budget 414 286 414 286 414 286 414 286 414 286 414 286 414 284 2 900 000

State budget – – – – – – – –

Special purpose funds – – – – – – – –

Private (national) funds – – – – – – – –

89

EU funds 4 142 857 4 142 857 4 142 857 4 142 857 4 142 857 4 142 857 4 142 858 29 000 000

Measure V.3. 7 657 142 27 157 141 27 157 141 27 157 141 27 157 141 27 157 141 27 157 153 170 600 000

LGU budget – 2 500 000 2 500 000 2 500 000 2 500 000 2 500 000 2 500 000 15 000 000

State budget 4 285 714 4 619 047 4 619 047 4 619 047 4 619 047 4 619 047 4 619 051 32 000 000

Special purpose funds – – – – – – – –

Private (national) funds 428 571 428 571 428 571 428 571 428 571 428 571 428 574 3 000 000

EU funds 2 942 857 19 609 523 19 609 523 19 609 523 19 609 523 19 609 523 19 609 528 120 600 000

Measure V.4. – 19 166 666 19 166 666 19 166 666 19 166 666 19 166 666 19 166 670 115 000 000

LGU budget – 2 500 000 2 500 000 2 500 000 2 500 000 2 500 000 2 500 000 15 000 000

State budget – – – – – – – –

Special purpose funds – – – – – – – –

Private (national) funds – – – – – – – –

EU funds – 16 666 666 16 666 666 16 666 666 16 666 666 16 666 666 16 666 670 100 000 000

Final amount 332 490 139 431 271 800 433 331 800 398 051 800 380 451 800 380 452 800 380 449 861 2 736 500 000

KPRES financing by sources (in thousands of PLN)

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Amounts (in PLN)

Amount from 2014

Amount from 2015

Amount from 2016

Amount from 2017

Amount from 2018

Amount from 2019

Amount from 2020 Total

LGU budget 22 269 286 32 229 286 32 229 286 32 229 286 32 229 286 32 229 286 32 229 284 215 645 000

State budget 43 485 713 45 319 044 45 319 044 45 319 044 45 319 044 45 319 044 45 319 067 315 400 000

Special purpose funds 79 590 000 79 923 333 79 923 333 79 923 333 79 923 333 79 923 333 79 923 335 559 130 000

Private (national) funds 11 511 570 8 951 570 8 951 570 4 071 570 4 071 570 4 071 570 4 070 580 45 700 000

EU funds 175 633 570 264 848 567 266 908 567 236 508 567 218 908 567 218 909 567 218 907 595 1 600 625 000

Total 332 490 139 431 271 800 433 331 800 398 051 800 380 451 800 380 452 800 380 449 861 2 736 500 000

Appendix no. 1

Result indicators on the measure level

Priority I. Social economy in socially responsible territory

Measure Indicator Data source Result Target value

91

Measure I.1.

Number of developed tools which deliver comparative data allowing to create social policy programmes at the commune and poviat level.

KSES report

Development of a tool which delivers comparative data allowing the creation of social policy programmes at the commune and poviat level by 2015.

1

Number of LGUs using tools which deliver comparative data allowing to create social policy programmes at the commune and poviat level.

Resource assessment

By 2016, 60% of LGUs use tools which will deliver comparative data allowing the creation of social policy programmes at the commune and poviat level.

60%

Percentage of communes which implemented the new social policy programming system.

Resource assessment

Implementing the new social policy programming system in all communes and poviats, together with the public consultation system, by 2016.

100% of communes

Percentage of poviats which implemented the new social policy programming system. Resource assessment

Implementing the new social policy programming system in all communes and poviats, together will the public consultation system, by 2016.

100% of poviats

Percentage of RDPPs established in communes and poviats. MPiPS report/resource assessment

Establishing RDPPs in 50% of communes and 30% of poviats by 2020.

50% of communes and 30% of poviats

Measure I.2.Number of active civic organisations. MPiPS report/Resource

assessment/SOF

Increasing the number of active civic organisations by 20 thousand in comparison to 2011

100 thousand

Percentage of LGUs which completed at least one local initiative procedure. MPiPS report/Resource assessment

Introducing social initiative implementation procedures in 90% of LGUs.

80% of LGUs using local initiative

Percentage of LGU which introduced the possibility of implementing local initiatives.

MPiPS report/Resource assessment Introducing social initiative implementation procedures in 90% of LGUs.

80% of LGUs allowing the use local initiative

92

Number of local initiatives implemented by LGUs. MPiPS report/Resource assessment Increasing the number of local

initiatives to at least 1000 a year. 1000 local initiatives a year

Percentage of communes which have specified the mode and criteria of assessment of public task fulfilment under local initiatives.

MPiPS report/Resource assessment

Specified mode and detailed criteria of assessment of public task fulfilment under local initiatives in 100% of communes.

100%

Number of people participating in long-term voluntary work.

Number of people participating in long-term voluntary work in civic organisations by 2020.

310

Average time required to register particular types of entities. KRS

The maximum time required to register an organisation from the moment of submitting complete documents until receiving the entry: 7 days.

7 days

Percentage of LGUs which are settling at least 1 public task on the basis of the results.

Resource assessment/MPiPS report Introducing the result-based settlement of tasks in 30% on LGUs. 30% of LGUs

The amount for public tasks delivered by LGUs under tender procedures to social economy entities.

MPiPS report/Resource assessment

Increasing the number of public tasks contracted under a tender procedure by local government units to social economy units to PLN 3.5 billion from the local government units’ budgets.

3.5 billion a year

Percentage of tasks commissioned to PES MPiPS report/Resource assessment

Increasing the number of public tasks entrusted to social economy units to 15% of tasks contracted under a tender procedure.

15% of tasks

Number of people employed in PES who are not social enterprises. MPiPS report/Resource assessment

Increasing the employment in social economy entities which are not enterprises by 40 thousand people in comparison to 2010.

40 thousand + state as of 2010

Measure I.4. Number of new jobs created in PS Report for the Chamber of Social Enterprises

Creating 10 thousand jobs in PES for people aged 50+. 10 thousand

Report for the Chamber of Social Enterprises

Creating 10 thousand jobs in PES for young people. 10 thousand

Report for the Chamber of Social Enterprises

Creating 20 thousand jobs related to the provision of family and care policy services.

20 thousand

Report for the Chamber of Social Enterprises

5 thousand green jobs will be created.

5 thousand

93

Percentage of PUPs and PCPRs which used at least one instrument from the social economy area.

Monitoring

The subject of the social economy is included in the activities of all employment agencies and social welfare centres.

100%

Priority II. Regulatory activities in the field of the social economy.

Measure Indicator Data source Result Target value

Measure II.1.

Number of acts regulating the status of a social enterprise. Journal of Laws The act regulating the status of a

social enterprise adopted in 2014. 1

Number of reports on cooperative law, social cooperative law, employment of disabled people and social enterprises.

Report on KSES activity An annual report on law monitoring prepared by KSES. 7

Measure II.2.

Number of RIO the employees of which were trained in socially responsible public procurement.

Activity monitoring

Training the employees of 16 Regional Accounting Chamber responsible for inspections in local government units by 2020.

16

Number of social enterprises the employees of which were trained in socially responsible public procurement.

Activity monitoringTraining of employees of 1000 social enterprises in socially responsible public procurement.

1000

Number of trainers/advisors prepared in the field of socially responsible public procurement.

Activity monitoringTraining 100 trainers/advisors in socially responsible public procurement.

100

Percentage of local government units in which the employees responsible for contract award procedures are trained.

Activity monitoring

Training the employees of local government units who are responsible for contract award procedures.

30%

Percentage of social public procurement in relation to the general volume of public procurement

UZP data

Achieving the 15% level of “social” public procurement on the national level, measured in accordance with the methodology of the Public Procurement Office by 2020.

15%

The percentage of LGUs using socially responsible public procurement with particular emphasis on pro-employment instruments.

Resource assessment/DPP data MPiPS/UZP data

Using social clauses in public procurement and/or reserved contracts by at least 15% of local government units in 2020.

15%

94

Priority III. Social Economy Support System.

Measure Indicator Data source Result Target value

Measure III.1.

Number of jobs created in social enterprises thanks to the granted co-financing

Report for the Chamber of Social EnterprisesOWES activity report

38.6 thousand new jobs in social enterprises created thanks to the co-financing. 38 600

Number of jobs created in social enterprises thanks to the granted co-financing which were maintained for longer than a year.

Report for the Chamber of Social EnterprisesOWES activity report

About. 35 thousand permanent jobs created in social enterprises thanks to the co-financing.

35 000

Measure III.2.

Number of intermediaries for regional loan funds. BGK/ROPS/RPO

Selecting 16 intermediaries for loan funds and guarantee funds covering all voivodships.

16

Value of granted loans Fund activity report

Supporting 1500 social enterprises and social economy entities with loans by 2020.

The indicator will be specified in 2015 after the financial instrument pilot programme is completed.

Number of granted loans Fund activity report

Supporting 1500 social enterprises and social economy entities with loans by 2020.

3000

Percentage non-performing loans Fund activity reportSupporting 1500 social enterprises and social economy entities with loans.

10%

Number of repaid loans Fund activity reportSupporting 1500 social enterprises and social economy entities with loans.

The indicator will be specified in 2015 after the financial instrument pilot programme is completed.

Value of repaid loans Fund activity report

Supporting 1500 social enterprises and social economy entities with short-term loans

The indicator will be specified in 2015 after the financial instrument pilot programme is completed.

95

Measure Indicator Data source Result Target value

Measure III.3.

Number of developed concepts of systemic programmes under RPO. RPO/ROPS

A concept of a network of social economy services financed from the Regional operational Programmes developed in every voivodship by 2014.

16

Number of networks covering an entire region. RPO/ROPS

Establishing a network of social economy support services, accredited by the Ministry of Labour and Social Economy, in every voivodship by 2015.

16

Number of accredited OWESs Accreditation system operator/ROPS

Certified OWESs operate in every region; the number of such OWESs is compliant with the provisions of regional plans.

44

Number of partnerships in which an OWES is engaged. OWES activity report Each OWES is engaged in at

least one poviat partnership. 380

Number of projects generated in partnerships animated by OWESs. OWES activity report

Each partnership generates at least one project on the poviat level.

380

Number of new PESes entities established as a result of OWES activities. OWES activity report

At least two PESes w in each poviat in which an OWES operates

760

Number of NGO functioning for longer than a year which started an economic activity as a result of OWES activities.

OWES activity reportAt least one economised NGO in each poviat in which an OWES operates.

380

Number of PS established as a result of OWES activities. OWES activity report

At least two PS in each poviat in which an OWES operates.

760

Number of jobs created as a result of OWES activities. OWES activity report OWES activity will generate a

total of 35 thousand jobs. 35 000

Percentage of PESs established as a result of OWES activities., which operate for more than 24 months.

OWES activity report At least 70% of PESes from among enterprises operating for longer than 24 months.

70%

96

Measure Indicator Data source Result Target value

Number of PESs in which the Development Programme is implemented. OWES activity report

In each poviat, at least 4 PESs development programmes are implemented a year.

1516

Number of PESs in which the Restructuring Programme is implemented OWES activity report

In each poviat at least 1 PES restructuring programme a year is implemented.

380 a year

Measure III.4.

Percentage of clusters whose members include at least 1 social enterprise. ROPS

10% of the current clusters has at least 1 social enterprise among its members. 10%

Number of clusters dedicated to social economy entities. KSES/ROPS Establishing 3 clusters with a

leading PS/PESs. 3

Number of franchise systems KSES/franchise operatorsAt least 4 operating franchise systems associating 60 entities.

4

Number of entities associated in franchise systems. KSES/franchise operators

At least 4 operating franchise systems associating 60 entities.

60

Number of strategies with instruments for PES/PS development. RPO/ROPS

CLLD and ITI strategies have PES development instruments.

The indicator will be specified in 2015.

Percentage of consultants trained in the social economy. MRiRW

100% of ODR and TZD consultants trained in the social economy.

100%

Percentage of PES which cooperate with higher education institutions.

Report for the Chamber of Social Enterprises

10% of PS cooperates with higher education institutions. 10%

Percentage of PES operating in partnership networks. Resource assessment 60% of PES operates in

partnership networks. 60%

Percentage of LAG who have at least 1 PES as a member. LGD/ROPS 50% of LAGs have at least 1

PES as a member. 50%

97

Measure Indicator Data source Result Target value

Number of people who completed post-graduate studies in the social economy. Report by study managers

At least 320 people a year will complete post-graduate studies.

320 people a year

Percentage of PS participating in foreign fairs and missions. PS activity report At least 10% PS participates

in foreign fairs and missions. 10%

Number of fair-like events dedicated to PS in Poland. ROPS/OWES In each region there is a fair-

like event dedicated to PS. 16 a year

Priority IV. Including the social economy into mainstrem policies on the national and regional level.

Measure Indicator Data source Result Target value

Measure IV.1. Number of operating KKESs DPP MPIPSEstablishing the State Committee for Social Economy Development by 2014.

1

98

Measure Indicator Data source Result Target value

Number of operating KSES DPP activity report Establishing the State Secretariat for Social Economy by 2014. 1

Number of operating not for profit entities established by MPiPS. KSES activity report

Civic organisations establishing a non-profit entity by 2014; this entity would take over the tasks related to service accreditation, coordination of activities in the area of innovation and social economy consultancy activities as an institution implementing the State Operational Programme in the field of the social economy.

1

Number of implemented regional social economy programmes. ROPS

Implementing regional programmes for social economy in every voivodship.

16

Number of operating Chambers of Social Enterprises

Data of the Chamber of Social Enterprises

Establishing the Chamber of Social Enterprises by 2015. 1

Measures IV.2, IV.3. Number of entities which are members of the Chamber

Data of the Chamber of Social Enterprises

Number of Chamber members in 2020: 760 social enterprises. 760

Number of quality mark systems and certifications KSES

Polish quality mark systems and certifications will be operational by 2020.

3

Number of obtained quality marks Quality mark operators By 2020, at least 224 quality marks will be assigned (at least 2 per region a year)

224

Percentage of PES associated in at least one networking organisation

PS report/Resource assessment At least 40% of PES belongs to at least one networking organisation.

40%

99

Measure Indicator Data source Result Target value

Number of OSESs KSES Polish Social Economy Meetings are organised every year. 7

Number of OSES participants KSES Polish Social Economy Meetings are organised every year. 400 a year

Number of Regional Social Policy Centres which have a coordination division in the field of the social economy in the voivodship.

Establishing a coordination division to coordinate activities in the field of the social economy in the voivodship in 16 Regional Social Policy Centres by 2014.

16

Number of reports MPiPS Preparation of annual reports on the development of the social economy. 6

Number of regional reports on the condition of the social economy sector.

ROPS Preparing six annual reports on the development of the social economy.

16 x 6

Priority V. Education for the social economy.

Measure Indicator Data source Result Target value

Measures V.1.,V.2.,V.3., V.4.

Number of research projects implemented in the field of the social economy by people at the beginning of their academic career who have not been awarded the PhD title (Preludium Programme).

NCN

Development of the Polish social economy thought on the basis of scientific resources of Polish higher education institutions.

2 research projects a year

Number of research projects implemented in the field of the social economy by people with a minimum of a PhD (Maestro, Sonata Bis, Harmonia Programmes)

NCN

Development of the Polish social economy thought on the basis of scientific resources of Polish higher education institutions.

2 research projects a year

Number of projects implemented in the field of the social economy by NCBIR

NCBR

Development of the Polish social economy thought on the basis of scientific resources of Polish higher education institutions.

1 research project a year

Percentage of trained RPP members. Activity monitoring

Training 100% of public benefit council members and 50% of social policy committees in communes, poviats and voivodships in the scope of activities conducive to the development of the

100% members

100

Measure Indicator Data source Result Target value

social policy by 2020.Percentage of trained members of the committee of social policy in communes, poviats and voivodships

Activity monitoring 50% members

Number of editions of post-graduate studies in the field of the social economy.

Higher education institutions Introducing post-graduate studies in the social economy in at least 16 higher education institutions in 2-year cycles.

16 x 3 editions

Number of post graduate students studying the social economy. Higher education institutions 16 x 3 x 40 (1920)

Number of supported projects in the field of establishing trial social enterprises

Higher education institutions Supporting at least 100 new projects of trial social enterprises in Academic Business Incubators.

100 projects

Number of supported youths’ groups Based on funds’ reports

Establishing at least 12 Regional Youth Funds which will provide support to youths’ groups from 50% of poviats and 30% of communes in Poland.

12

08/46rch

101

102