Job creation through social entrepreneurship

What's new for social enterprises and social economy

Strategy for social enterprises, EU recommendation and other international matters

  • Finland's Strategy for Social Enterprises will be updated to align with the European Commission's recommendation of 13 June 2023 on concrete measures to support the social economy. The measures are aimed at creating favourable conditions for social economy organisations to thrive and grow. The recommendation also raises awareness of the potential of social enterprises to create jobs.

Implementation of the recommendation will focus on:

  • improving the framework conditions for the social economy
  • providing development opportunities for those involved in the social economy
  • raising awareness of the social economy
     
  • The EU will monitor the national implementation of the strategy within two years of its adoption, by the end of 2025. The strategy process was launched in autumn 2024, and several events related to updating the strategy will be held in spring 2025.
    • Ministry of Economic Affairs and Employment will lead the strategy process. The Ministry will work in close cooperation with stakeholders in thematic areas. Participation in the strategy process is open to everyone. For more information and registration for events, please see the project website: yyo.fi/en/home/
  • ​​​​​​​Finland’s current strategy for social enterprises was adopted in 2021. One of its key objectives is to employ people with impaired capacity to work as well as others who are in a difficult labour market position. 
  • The European Commission’s industrial strategy includes 14 industrial ecosystems, one of which is related to the digital green transition of the local and social economy.
  • In summer 2022, the OECD Council also published its recommendations on the social and solidarity economy and social innovation. The recommendations resemble those issued by the EU, but take a slightly more practical approach.
  • The International Labour Organization (ILO) Resolution on concerning decent work and the social and solidarity economy also dates back to 2022.

Information on social entrepreneurship

Centre of Expertise for Social Enterprises

Activities of the Centre of Expertise for Social Enterprises were launched between 2021 and 2023. The project is coordinated by the Finnish Association of Social Enterprises Arvo.

 The Centre’s tasks include:

  • creating national advisory and guidance services specialising in social enterprises and introducing measures to raise awareness of the business model among experts working in business and employment services as well as in entrepreneurship education in educational institutions. 
  • systematising statistics and data collection on social enterprises and promoting research in the area.
  • increasing skills in responsible and impact-based business among social enterprises.
  • strengthening structures and network cooperation that support the expansion and commercialisation of social innovations.
  • developing national models for employing people with partial work ability and others in a difficult labour market situation as part of social entrepreneurship and strengthening the networks of social enterprises that integrate people into the work.
  • finding ways to market social enterprises and assessing the need for new funding models and opportunities for expansion.

The Centre’s services can benefit companies and those interested in social entrepreneurship as well as educational and research institutions, ELY Centres, regional business services, and other organisations providing public business and financing services.

The website of the Centre of Expertise for Social Enterprises contains a large amount of information to support social entrepreneurship. For example, information on different social enterprises by industry, size, area and type of company is available on the data pages.

One of the Centre’s key objectives is to increase the number of jobs available to people with impaired capacity to work and others who are in a difficult labour market position. The Centre of Expertise has prepared a policy recommendation on the objectives and measures to help social enterprises create new jobs for 100,000 people, especially those with impaired capacity to work and others who need support in their employment. The means for this already exist, and no additional public funding will be needed for their introduction.

Promoting the work of social enterprises in Finland 

  • During the 2021–2027 funding period, funding from ESF+ will be used to implement a national coordination project to improve the business conditions of social enterprises. The coordination project supports the implementation of the national strategy for social enterprises and creates networks for those involved in the theme of social entrepreneurship and improved business competence of the social economy. Read more:

EU social economy supports social entrepreneurship 

Social economy organisations are corporations that put social and environmental objectives first. They also invest most of their revenue to promote these objectives. The EU’s objectives therefore support the activities of social enterprises and the Centre of Expertise for Social Enterprises in Finland.

What is a social enterprise?

A social enterprise 

  • engages in business activities in order to achieve its social objective 
  • uses most of its profits or surplus to promote its social objective
  • confirms this objective in the articles of association or rules of the corporation.

A social enterprise emphasises responsibility, openness and transparency in its activities as well as inclusion and democracy in its administrative model.

A social enterprise can be a 

  • limited liability company
  • co-operative, or 
  • foundation or association engaged in business activity.

Social enterprises do not have a special status based on legislation and they do not receive more public financial support than other companies.

There are approximately 3,500 social enterprises in Finland with a combined turnover of over EUR 6 billion. The majority of companies operate in the health and social services, environmental, recycling and employment services sectors. They employ more than 60,000 people. 

Read more about them on the website of the Centre of Expertise for Social Enterprises at yyo.fi/en/home/

Hanna Hämäläinen, Ministry of Economic Affairs and Employment