José Manuel Durão Barroso, President of the European Commission Building responsible and sustainable growth – the role of social entrepreneurs Social Innovation Conference Brussels, 18 November 2011
Ladies and gentlemen,
The Social Business Initiative is a first step, but an important one.
The Commission's guiding objective is to create the right environment for social businesses in all their diversity of legal forms and status across our Member States. To foster their growth and development across Europe. To untap some of the massive potential that they represent for Europe's future prosperity.
All while ensuring that social enterprises can uphold their fundamental values of sustainability, inclusiveness and solidarity.
Social enterprises are, by definition, social in their ends and means: their primary objective is to achieve social impact rather than generate profits for owners and stakeholders.
Nevertheless, they operate in the market through the production of goods and services in an entrepreneurial and innovative way, and more often than not they make a profit which can be put back to use for social or other public interest goods.
Action at EU level can be an accelerator for social business, by raising awareness of this sector and its huge potential. Social businesses are a growing and dynamic part of the European social economy, which represent millions of employees.
The EU can help to foster the sector's further development by reducing the complexities of its regulatory environment, in particular, as regards funding and access to markets.
After all, let us not forget that social enterprises are businesses that are not only seeking to include people or to share profits more fairly, but that also create jobs. They are businesses whose very ethos is grounded in responsibility and long term shared benefits. Being a social enterprise can in itself be a competitive advantage. Consumers are increasingly willing to take social and environmental factors into account when choosing goods and services. And I believe that this is going to be a pattern in the future evolution of consumption trends. But there is more we can do to inform them of the wider benefits of social enterprises.
The package of measures the Commission presented on October 25th is dedicated to putting in place new tools to help social businesses overcome the obstacles they face.
They include among others:
- a 90 million euro financial instrument for the next financial programming period to provide social investment funds and financial intermediaries with equity, debt and risk-sharing instruments;
- a new investment priority for social enterprises to allow Member States to include targeted measures in their programmes under the Cohesion funds from 2014 onwards and;
- the establishment of a single on-line data and exchange platform at European level to help professionals in this sector in their daily work.
Together with the significant changes we will soon bring to the state aid and public procurement frameworks, these tools will deliver a supportive and well-adapted environment in which I believe social innovation can and will flourish.
And I expect that at the end of November in our last meeting of the College of the Commission we will propose to mainstream social innovation in the new Horizon 2020 strategic framework for research and innovation, with a dedicated focus on inclusive, innovative and secure societies. This will complement a renewed effort on these issues by the European Research Council.
Ladies and gentlemen,
Social business can be indeed a very powerful agenda for change. To deliver better outcomes for the common good. To show that it is possible to do things more responsibly and more fairly, whilst still being a success on the market.
And to become a real engine of growth in the EU. Europe must not only be part of these changes. Europe should be in the lead.
The growth of the sector in recent years shows that we have maybe already reached a tipping point. It is estimated that between 290 and 720 billion euro could be invested in socially innovative structures worldwide by 2020, generating between 130 and 480 billion euro of cumulative profits.
With this perspective, we will need to continue to re-think our policies as social business expands and as new challenges emerge.
We will need to find new means to give confidence to the markets on what social businesses are and how they perform.
We need to invest in researching ways to effectively measure and value social impact benefits. We will also need to do more to promote the recognition of social businesses as a standard asset class for professional investors.
None of this easy, especially in a turbulent economic and financial context. But one thing is sure. Social Business is here to stay and is moving fast. Europe has nothing to lose and everything to gain from being in the vanguard.
That is why your input, your feedback is so vital in this process. Self regulation is part of the DNA of social innovation. Let us continue to work together. We have a mutual interest in making sure that your work is better recognised and more highly valued.
Social business I believe is key to a more sustainable, responsible and inclusive future for Europe.
As we move forward in this process, you can count on the European Commission to be on your side.
I thank you for your attention.
Source: http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/11/775
Video link: http://vimeo.com/32561016
