Issue № 71. December 2018

State Support of Social Entrepreneurship: Foreign Experience Analysis

Anastasia A. Plyukhina — teacher, Russian State University for the Humanities, Moscow, the Russian Federation.
E-mail: pluhinaa@yandex.ru

Vitaly A. Umnov — DSc (Economics), professor, Russian State University for the Humanities, Moscow, the Russian Federation.
E-mail: umnov.v@rggu.ru.

The article is devoted to the other countries experience in the field of social entrepreneurship state support. This area of activity is very important due to the further development of the socially-oriented Russian economy and the need to attract additional resources to solve the problems of society with intensive economic development. The experience of economically developed countries in this area of activity is extensive and will significantly develop the domestic system of support for social entrepreneurship.

In a number of countries, legal norms defining social entrepreneurship and the status of the organizations implementing it have been developed. Special organizational and legal forms are applied. The legislation in the field of social entrepreneurship was mainly developed in the beginning of the 21st century. Among the leading countries are Italy, the UK, the USA, Belgium and other EU countries. The measures taken by states of economically developed countries are directed not only at developing the production of socially important goods and services, but also at involving as many socially vulnerable groups as possible in the production process (people with disabilities, the unemployed, etc.).

One of the most interesting example for the research in this area is the experience of Great Britain, where there has been created a large number of enterprises of various organizational and legal forms, carrying out activities aimed at improving public relations and improving the living conditions of the population. The legislation of UK provides significant opportunities for social entrepreneurs in the provision of public services.

In turn, the social entrepreneurship support model used in the United States implies to a lesser extent the merging of state programs aimed at solving social problems and supporting socially oriented businesses.

The social entrepreneurship support system used in South Korea implies mandatory certification of enterprises operating in this field. At the same time, the activities of these enterprises should be only in the social sphere and at least 2/3 of the profits should be reinvested in social missions.The state provides these entrepreneurs substantial benefits.

In many countries, the institutional structure to support and promote the development of social entrepreneurship is also well developed. Among the leading countries is South Korea. The support system  from various organizations includes  both direct (financial) and indirect (organizational, informational, etc.) support.

These measures can significantly increase the activity of entrepreneurs which is aimed at solving the problems of society and this experience can be successfully used in Russia.

Keywords

Social entrepreneurship, social programs, social projects, state support, foreign countries experience, problems of society