Finnish Ministry of Economic Affairs and Employment has recently published an analysis showing that social enterprises have potential for increasing the employment rate of people with partial work ability. The Finnish government aims to improve the conditions for social enterprises to employ people with partial work ability and other vulnerable groups, and to lay a foundation for the work, Harri Kostilainen, Researcher at the Diaconia University of Applied Sciences has studied the current situation of social enterprises in Finland upon the request of the Ministry of Economic Affairs and Employment.
Social enterprises are not sufficiently considered in the context of promoting the conditions for conducting business in Finland
The report shows that social enterprises have special characteristics and needs that are not recognised in the current Finnish strategies and policies to support business activities. According to the report, social enterprises are not sufficiently considered in the context of promoting the conditions for conducting business. In order to enable social enterprises to improve their business and employment, awareness of their activities should be promoted and better heir special characteristics better identified. Social enterprises should also be taken into account in public employment and business services.
The majority of social enterprises operates in social and health care services, employment and circular economy
According to the report, there are approximately 1,700 social enterprises in Finland. Their combined turnover is nearly EUR 5.8 billion and the number of jobs over 50 0000. Social enterprises operate in several sectors. Most common sectors are social and health care services, employment, environment and circular economy.
Social enterprises have potential for increasing the employment rate of people with partial work ability
According to the report. of the 50 000 jobs created by social enterprises, most are in enterprises that the Association for Finnish Work has awarded the Finnish Social Enterprise Mark (22,500 jobs) and in social and health care associations (26,500 jobs). These two groups are considered in the report ot have particular potential for increasing the employment rate of people with partial work ability.
Recommendations to strengthen the business and employment conditions for social enterprises
According to the report, social enterprises need suitable measures to promote the capabilities of the business model, awareness, resources and competence. The report also recommends policies to promote the objective set out in the Finnish Government Programme. It also lists concrete proposals for measures to include in the strategy for promoting national social entrepreneurship.
Read more about the report here.
Researcher’s presentation about the report (in Finnish) can be found here.