Social Innovations and Social Enterprises
Social Innovations offer answers to the challenges of our time. They close supply gaps and establish new solutions for social problems. Social Enterprises are the future shapers we need! They create new markets and jobs, promote social justice and are committed to a climate-neutral future, and they do so with entrepreneurial means.
Definition, Impact, Objectives
What to know about Social Innovations and Social Enterprises
Social Enterprises within the meaning of the National Strategy and in harmony with the definition of the European Commission are enterprises,
- for which the social or ecological objective of the common good is the reason for the commercial activity, often in the form of a high level of social innovation,
- where profits are mainly reinvested with a view to achieving this social objective,
- and where the method of organisation or ownership system reflects their mission, using democratic or participatory principles or focusing on social justice. They can have different legal forms e.g. gGmbH, gAG, as e.G. or foundation.
According to the EU Commission, there are currently around 80,000 Social Enterprises in Germany. Also, more than 2.6 million people work in the ‘Social Economy’. That is three times the automotive industry. Furthermore, a study by Creditreform has shown that Social Enterprises have far more financial stability than other non-social enterprises.
Social Innovations encompass new social practices and organizational models that aim to find viable and sustainable solutions to the challenges our society is facing.
Social practices include new processes, procedures, patterns of behavior and action. For example, Social Innovations change how people use transportation (car sharing), the amount of plastic waste they produce (unpackaged stores) or how they use green spaces in the city (urban gardening). Hence, Social Innovations prove themselves over time and are accepted in parts or all of society. They can replace inadequate solutions and programs or complement them in a meaningful way.
Examples in healthcare and education have shown that, in addition to societal (social or ecological) value, Social Innovations can come with a high financial savings potential, i.e. added economic value.
Social Innovations are launched by a variety of actors, including social start-ups, Social Enterprises, civil society initiatives and organizations, cultural and creative industries, welfare organizations, public administration and actors from science, politics and business.
Social Innovations have the potential to offer new solutions to current social challenges and to implement the Sustainable Development Goals. For example, they can aim to provide effective solutions for disadvantaged or vulnerable people and protect our natural environment.
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