Social Entrepreneurship in Deprived Areas of Amsterdam Dr. Isabel J. Gallin, Procesmanager, Social...
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Transcript of Social Entrepreneurship in Deprived Areas of Amsterdam Dr. Isabel J. Gallin, Procesmanager, Social...
Social Entrepreneurship in Deprived Areas of Amsterdam
Dr. Isabel J. Gallin,
Procesmanager, Social Development Department
City of Amsterdam
The Learning Network - Milan
Friday, February 11th, 2005
Economic Development DepartmentSocial Development Department
11 February 2005 2
The Amsterdam Experience
Content
From Third Sector to Social Enterprise The Dutch Tradition: ‘Pillarisation’ and Welfare state Ethnic Entrepreneurship Empowerment Situation in Amsterdam Social Entrepreneurship and Local Development
11 February 2005 3
The Third Sector
Non Profit Sector / Social Economy
Public Private
1970’s
Third SectorCo-operatives, Associations, Mutual Societies
11 February 2005 4
Non-Profit Sector
1. Tax exemption as a key criterion (USA)
2. For cross-national comparative purposes
Formal they have a certain degree of institutionalisation (presupposes a legal personality)
Private Distinct from both state & those organisations issuing directly from the public authorities
Self-governing They have their own regulations & decisions making bodies
Non-distribution constraint They cannot distribute profits to either their members, their directors or a set of ’owners’
Voluntary contribution Some level of voluntary contribution & founded on free and voluntary affiliation of their members
11 February 2005 5
1. Legal / institutional
Co-operative style enterprisesMutual type organisationsAssociations
2. Normative
Serving members of the community rather than generating profitIndependent managementDemocratic decision making processPrimacy of people & labour over capital in distribution of income
usually combinations of both approaches
Social Economy
11 February 2005 6
Points of divergence → Social economy approach:
1. Specification of goals → Serve members of the community rather than to seek
profitNon Proft: Not explicit as to the goals of the organisation
2. Control over the organisation→ The requirement of a democratic decision-making
processNon Profit: No formal democratic requirement
3. Use of profits→ Redistribute a part of the surplus to the membersNon Profit: prohibits any profit distribution and thus excludes
the entire co-operative component of social economy
Dynamics & emergence of social enterprises?
Social Economy or Non-Profit Sector?
11 February 2005 7
Non-Profit Sector Social Economy
New entrepreneurship
Social enterprises
Social Economy & Social Enterprises
11 February 2005 8EntrepreneurshipCriteria of Innovative Behaviour
Entrepreneurs are responsible for introducing changes
in at least one of the following ways:
1. New product / quality of product
2. New production method
3. Opening of a new market
4. Acquisition of a new source of raw materials
5. Reorganisation of a sector / activity
11 February 2005 9
New economic trends in their behaviour are compatible
with explicit social dimensions if
1. They benefit the community or target groupsPurposes of the activity → requirement for the production surplus to be ‘socialised’ / reinvested in the development of the activity / used for the benefit of people other than those who control the organisation
2. Non-commercial resourcesBroad mobilisation of resources across the society (non-monetary, voluntary work, donations)
3. Particular organisational methodsDemocratic decision-making process, members involved in management
Enterprises which may be called ‘social’
11 February 2005 10
Criteria of Social Enterprises
Economic / entrepreneurial dimensions Continuous activity producing goods and / or selling
services High degree of autonomy Significant level of economic risk Minimum amount of paid work
Social dimensions Explicit aim to benefit the community Initiative launched by a group of citizens Decision-making power not based on capital ownership Participatory nature, which involves the persons affected by
the activity Limited profit distribution
11 February 2005 11Definition of Social Enterprises EMES-network
Purpose of activity
Non-commercial resources
Particular organisational methods
11 February 2005 12
NL has the largest non-profit sector in the world in terms of
employment (1995)
→ 12 %
or 670.000 full-time jobs in education, healthcare & welfare
Comparison:
→ United Kingdom 6,2 %
→ Germany 4,9%
→ France 4%
The Dutch Situation
11 February 2005 13
‘Pillarisation’
groups of citizens organised themselves along religious
& political lines Catholics, Protestants, Liberals, Socialists and others
Emancipation of different population groups Not confined to the non-profit sector
political parties, labour unions, housing associations, newspapers, schools, broadcasting associations, sport clubs, hospitals, shops, etc.
All kinds of service providing organisations were set up
along the lines of the pillars, financed by collective
arrangements
How come?
11 February 2005 14Have we got social enterprises in Amsterdam?
The Dutch Welfare state
All-encompassing approach of Dutch government
leaves little room for independent local initiatives
Almost no project can meet the complete set of
entrepreneurial and social criteria defining social
enterprises
11 February 2005 15
Ethnic entrepreneurship
General notions Stimulation of (deprived) areas Stimulates participation to society Enhances creativity & dynamism in an area ‘Bridge’ between present location and land of origin
Facts Quota for migrants is lower than for non-migrants … But growth is much higher for migrants 2nd generation chooses entrepreneurship more often
than 1st generation Differences: more Turkish and Chinese entrepreneurs
than Moroccan, Surinam, Antillean or African
11 February 2005 16
Ethnic Entrepreneurship in NL
Not a big issue & no specific policies
Monitors Preconditions Remove barriers for (ethnic) entrepreneurs
Empowerment
strengthening position of inhabitants in social, physical,
cultural, mental and economic respects
11 February 2005 17
Amsterdam City Center
Total population 79.919 inhabitantsJanuary 1, 2004
11 February 2005 18
Amsterdam within the “Ring A10”
Total population 439.847 inhabitants
11 February 2005 19
City of Amsterdam
Total population 738.763 inhabitants
11 February 2005 20
Deprived Areas of Amsterdam
Parts of:
West - ParkstadCampus New WestD’Oude Huygens
SoutheastSocial venture competitionsArena‘Entrepreneurial houses’
NorthVEBAN, VMBO Business Schools, RABA, Bredero College, Shell area
11 February 2005 21
Conclusions
Definition debateNarrow interpretation of social enterprise, less attention on the non-profit sector that provides the preconditions (welfare, healthcare, housing, education etc.)
Empowerment as a policy / an instrument Goal is to enable inhabitants of Amsterdam to participate to societyto grow from ‘social entrepreneurs’ to ‘entrepreneurs’
Social enterpriseFocus on the enterprise part, potentials, chances
11 February 2005 22
Thank you for your attention!
Acknowledgements
Mr. Drs. Edwin A. Oskam,
Economic Development Department, City of Amsterdam
Mr. Dr. Piet H. Rennoy,
Regioplan Policy Research
Further reference:
The results of the EMES-network are published in:
The Emergence of Social Enterprise,
Edited by Carlo Borzaga and Jacques Defourny
London & New York 2001