Business and NGOs Constortium for Communities Well-Being through Social Entrepreneurship Development

Business and NGOs Constortium for Communities Well-Being through Social Entrepreneurship Development: Business and NGOs Constortium for Communities Well-Being through Social Entrepreneurship Development

Lviv, Donetsk, Luhansk obalst, AR Crimea, UkraineLviv, Donetsk, Luhansk obalst, AR Crimea
Project Stage:
Growth
Budget: 
$100,000 - $250,000
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

East Europe Foundation convened a consortium of cross-sector stakeholders (e.g., business, NGOs and experts) to promote social entrepreneurship in Ukraine. The consortium partners have worked since 2011 to provide social entrepreneurs with better business skills and access to finance (low-interest loans). Being tested in economically depressed communities, the proposed model only in 2013 helped create 27 jobs.

About Project

Problem: What problem is this project trying to address?

The idea is to help solve social problems faced by society by means of the development of social enterprises as part of SMEs. Ukraine has an unfavourable environment for business development (Ukraine was ranked 112/189 in WB’s 2013 Doing Business Index). The national government has no understanding of SMEs’ crucial role in the economic development. From the other hand charitable foundations and NGOs have very limited resources of funding and also do not receive support from the government. The idea of the project is to teach people how to run a social enterprise as a usual business which will simultaneously help to generate funding for the needs of charitable organizations.

Solution: What is the proposed solution? Please be specific!

Business and NGOs united efforts and resources to create favorable environment for the social enterprise sector development, as well as to spread this effective model throughout Ukrainian regions. We provide those who want to run a social enterprise with legal, financial and consulting support. We established special fund to provide people with easy no-interest loans, created new jobs and raise awareness about the issue. Business contributed not only money but practical advices and expertise on taxes, management, etc. Business participated in a program design and implementation from the beginning.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

East Europe Foundation has provided support for start-ups and for existing social enterprises. Lviv civil society organization “Narodna dopomoha” has been assisting people in need for a couple of years now. To be self-sustaining, the organization created a social enterprise – the bakery “Horikhovyi dim”.One of the projects financed through bakery’s revenues is the Centre of Assistance to Women in Crisis. The centre helps those who have become homeless, lost their papers or found themselves in a difficult situation. EEF provided funding to create new workplace and equipment, assist in the training for staff, and helped to conduct infocampaign. However, organization is actively fundraising and receives money from bakery's profit

Spread Strategies: Moving forward, what are the main strategies for scaling impact?

EEF’s project helped establish the preconditions for the development of the social business sector in Ukraine. The resulting practice and emerging business sector develops social inclusion and reduces poverty through greater income generating opportunities for Ukraine’s most vulnerable people. In response to the unique environment, the project also paid particular attention to defining social entrepreneurship amongst a broad group of stakeholders and establishing quality standards and transparency within the stakeholder institutions. The project continues to spread no new regions of the country. In 2014 we plan to coover three more towns
Sustainability

Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?

there are no competitors in this field in Ukraine
Team

Team

Special steering commitee who oversees the project implementation including leading experts, representatives of business and civil society organizations. East Europe Foundation President is a leading force who attracts new partners, initiates meetings to share the successes and solve problems together with the staff from corporations, who are responsible for the social investments and companies CSR activities (middle-level management).
About the Lead Co-Creation Partners
Organization:
DTEK is the largest privately-owned vertically-integrated energy company in Ukraine
Visit website
LEAD SOCIAL-MISSION ORGANIZATION
Type of organization (e.g. NGO, association, not-for-profit, foundation, social enterprise)

Ukrainian NGO

Total Number of Full-Time Employees

17

Lead Contact First Name

Victor

Lead Contact Last Name

Liakh

Title

President

Country

Ukraine

Twitter URL
LEAD CORPORATE PARTNER
Organization Name

DTEK is the largest privately-owned vertically-integrated energy company in Ukraine

Total Number of Full-Time Employees

140,000 people

Lead Contact First Name

Victoria

Lead Contact Last Name

Grib

Title

Head of Sustainability Unit

Country

Ukraine

Twitter URL
Facebook URL
Organization Website
Basic Info
Project Starting Year

2011

Primary European Country where this Project is creating social impact

, Lviv, Donetsk, Luhansk obalst, AR Crimea

Additional European countries where this Project is creating social impact
Select the category that best fits the type of your project:

New products & services: Entries in this category develop and offer essentials product and services that address needs currently unmet, Job Creation: Entries in this category create new jobs for people away from the labor market.

What awards or honors has the project received?

n/a

Project Summary
Co-Creation Model: Tell us about your main strategic partners and how the partnership truly create value. For each Partner please include its type (business/social/public), its name, a short description, its key motivation to participate in the co-creation project, and the key contributions it is making in the co-creation project. Please follow the format displayed below:

-Partner 1 DTEK company
-Type of partner business
-Short description sentence
DTEK is the largest privately-owned vertically-integrated energy company in Ukraine, with efficient enterprises that mine and prepare coal as well as operate on electrical power generation and supply markets.
-Key motivation to participate in the co-creation project The main aim of the project, in which DTEK has invested EURO 100 000, is to increase the competitiveness of the regions in which the company conducts its operations by strengthening their economic potential and spurring the growth of social entrepreneurship. These activities are expected to promote the development of small-sized enterprises and increase the number of workplaces for people. Project partners believe that such activities will contribute to the development of small business and jobs for vulnerable groups. Partners also conducted a training program, promote the idea through different channels and create a microfinance mechanism to fund business plans to be developed by those who are interested in starting a social business.
-Key contributions in the co-creation project: funding, support through the network of the agencies of the local economic development which were created by the company

-Partner PWC Ukraine
-Type of partners business
-Short description sentence [Max 25 words/partner]
-Key motivation to participate in the co-creation project social enterprises support is a part of the company's CSR strategy
-Key contributions in the co-creation project: providing consultations and training program on taxation, business plan development , regulatory policy and legislative framework for the creation of social enterprises. It means PwC Ukraine employees as trainers conducted training modules, and in total dedicated more than 400 hours of their working time to this project.
etc.

Impact
Impact: What is the impact of the work to date? Also describe the projected future impact. Please specify using qualitative and quantitative data (e.g. # of indirect and direct beneficiaries); help us understand how this solution truly makes a difference.

Three regional and a national resource center (www.socialbusiness.in.ua) established to provide information
In total over EURO 70k were awarded as grants (money came from business like: the American Chamber of Commerce, Erste Stiftung in 2011-2012 years) to NGOs to support social enterprises and create new jobs;over 20 trainers trained over 200 people participated in training program on how to run social enterprise; in 2013 the new microfinance mechanism to provide recoverable interest-free funding to approved business plans created (9 plans were supported and 27 new jobs created already, 199 consultations were provided.)
Project was spread to new regions, a promofilm was created, a press tour and First National Forum for social entrepreneurship were conducted

Sustainability
Funding: How is your project financial supported? [select all that apply]

Foundations, Businesses, Other.

Sustainability Plan: Has your project already reached financial sustainability? If not, what is this solutio’s plan to ensure financial sustainability? Do the main partners have enough stake to sustain the solution? If this project requires limited budget, how will other resources be secured to maintain or grow this work?

In order to ensure the sustainability of the project, East Europe Foundation mobilized resources to create local funds of non-interest loans for social entrepreneurs. The goal of the funds is to ensure continuous access to finance for social enterprises. Currently EEF is testing this financial viability model in Donetsk and Lviv regions of Ukraine.

Team
Founding Story: Share a story about the "Aha!" moment that led the Partners to get started and/or to see the potential for this to succeed.

In 2011, East Europe Foundation and the British Council joined forces for the project "Development of social entrepreneurship". This is a relatively new concept in Ukraine, and project partners have united their efforts to spread this effective model throughout Ukrainian regions.In order to make the project more effective and to incorporate innovative approaches and business models as well as to find additional funding to implement the project, partners applied to business for support. It is important to note that a number of companies expressed a desire and interest to join the project. Taking into account diversity of project’s objectives and activities a special steering committee which consists of representatives of business and non-profit sector was established. Consequently, business was involved to the project from the beginning and provided feedback to the all stages: planning,

About the Co-Creation
Barriers: What main barriers may you have encountered to co-create during the creation and implementation of the project and how did you try to overcome them?

One of the main barriers EEF encountered was to convince certain partners and stakeholders that social entrepreneurs should be supported through accessible loans, rather than non-refundable grants. EEF’s rationale is that social enterprises should remain viable in a competitive economic environment.

Governance: What is the type of the relationship between the partners? (e.g. joint venture, contractual relationship, joint project...)

It is a joint initiative where we develop strategies and implementation plans according to partners prioroity areas and budgets

Interaction model: How is the project a transformative partnership? How is the interaction transforming the partnering organizations and their employees/ leadership in terms of creating a new vision, new management practices, new skills and new organizational structures? Please provide for concrete examples

EEF engages large businesses to advise on business development models of social enterprises and mentor the target social entrepreneurs. Business partners (e.g., Donbas Fuel-Energy Company DTEK, LLC "PricewaterhouseCoopers" and Erste Bank) have provided pro-bono consultations to local social entrepreneurs on legal and financial aspects of business development. For instance, Erste Bank consulted social entrepreneurs on how to develop business plans and apply for bank loans. Thanks to these consultations and training, the trained social entrepreneurs managed to improve their financial management practices and attract further loans for expansion of their businesses. Erste Bank experts also worked with social entrepreneurs on communication and marketing issues.

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