Social Entrepreneurship in Russia

prepared by Marina Pavljuk

What is Social Entrepreneurship ?

Social Business - is a business where an investor aims to help others without taking any financial gain himself, while generating enough income to cover costs.

Social Business operates with an idea that the profits earned by selling products or services serve to achieve a clear social mission.

Social Business and Economics

• Opportunity to solve economic problems of core groups of people by their own efforts and their own resources.

• Like private-sector entrepreneurs, social entrepreneurs seek opportunities to create value—but the value they pursue is social rather than purely economic.

• Formation of three parties coalitions between government, business and non-commercial organizations to solve social problems

Talking about Russia• Not more than 10 years history in Russia.

• October 2010 - the first conference on Social Business in Russia which attracted a large number of 120 representatives from corporations, universities, the Russian government as well as non-governmental organizations.

• The Grameen Creative Lab signed a Memorandum of Understanding with the Finance University in Moscow, one of the leading universities in the area of finance and economy to jointly bring the social business movement to Russia

SE in Russia• Regional fund social programs

"Our Future" - a non-profit organization dedicated to the development and support of social entrepreneurship in Russia. Conducts All-Russian competition of projects "Social Entrepreneur“.

The Goal of the Fund "Our Future": to develop Social entrepreneurship in Russia.

• In 5 years of operation, the Foundation supported 74 social entrepreneurs with a total of about 150 million rubles.

• 2 first online resource in Russia exclusively devoted to social entrepreneurship: the portal "New business: social entrepreneurship" and the portal of the "Bank of social ideas"

Agency for Strategic Initiatives (ASI)

• intends to establish a network of Centers of Innovation All-Russian social sphere.

• Sphere: employment of disabled persons, the establishment of private schools and kindergartens, rehabilitation equipment manufacturing.

• 2-3 years 10-20 ASI intends to launch thousands of new projects in the field of social entrepreneurship

Microfinance Center (RMC)

• was established in 2002. RMC President Michael Mamut

• one of the main objectives of social support RMC business and socially-oriented NGOs as through community-based initiatives

• specific projects in cooperation with local and international partners (eg, creative laboratory "Grameen", Yunus Center and Yunus Social Business).

Small Business Worldwide

• Which is in average only 6% from the Private Sector

• And only 1% of small businesses are dealing with Social Entrepreneurship

Main reasons

• "Social entrepreneurship" is not a legally enshrined

• High level of corruption• Bureaucracy processes• Poor development of the internal market• Funding gap

Russian Culture• Collectivism (togetherness) - cooperation and

collaboration, rather than competition. • Egalitarianism - philosophy that supports the removal of

inequity and promotes an equal distribution of benefits.• Dusha (soul) - liking and emotion will from a strong

basis.

oRussia has a unique role in Europe and Asia as the central hub of social business. It has the power to serve as a role model in solving the most

pressing social problems in the region

Resources• Creating a World Without Poverty / by

Muhammad Yunus – p. 33• Web-site of Muhammad Yunus

http://www.muhammadyunus.org • http://www.grameencreativelab.com/news/social-

business-conference-in-moscow.html

• http://www.nb-fund.ru/about-us/• Social Business in Russia- Paquin A.J.(translated

from Russia)• http://www.asi.ru/