„Today, we face more complex challenges than ever – climate change, digitalisation, growing inequalities, demographic changes... And the ongoing war in Ukraine and the energy and economic crises have made the situation even more difficult and made us realise that we need to strive for inclusiveness, fight poverty and strengthen regions. Moreover, as we overcome the immediate consequences of these crises, it is becoming clear that a fundamental change in our society is needed to achieve an even more sustainable model, both environmentally and socially. The transition to a resilient economy and society is urgent,“ says LISVA Director Viktorija Braziūnaitė in a letter from the Association, calling on Lithuanian parties to turn to social business.
Social business organisations are businesses that address the problems facing society and the environment around us and respond quickly to the challenges that constantly arise, creating jobs and innovation. They bring together a community of informed people and empower people to solve their own problems, thereby contributing to economic prosperity.
According to V. Braziūnaitė, over 13 million people are working in European social economy enterprises. And that number is constantly growing. Evidence shows that during the economic crises of the last decade, social business has shown a remarkable ability to contribute to building and strengthening the resilience of communities and has demonstrated the ability to manage fundamental change. Organisations in this sector have outperformed other sectors and created over 12% of jobs while tackling significant societal challenges.
And in other parts of the world, the idea of entrepreneurship, which is closely linked to societal challenges, is already popular and is highly valued and promoted by governments. The huge added value created by organisations in the social business sector has long attracted the attention of countries such as Canada, Singapore, Israel, Sweden, the Netherlands, etc. In Quebec, for example, according to 2020 data, over 11,000 social business enterprises were employing 220,000 employees and 90,000 volunteers. Their revenues amount to around 48 billion Canadian dollars. What a huge potential they have unlocked! In such countries, there are a number of business incubators and accelerators at the municipal level to address societal challenges.
„None of this would be possible without a strong local government presence because each city, town or village is unique, often with its own challenges. Social businesses play an important role in job creation, inclusion and sustainable growth and the integration of vulnerable groups into the labour market. They ensure industrial development and empowerment, retraining and up-skilling. They operate in a wide range of economic sectors and ecosystems, including social and public services, health, social housing or affordable energy for the most vulnerable, which helps mitigate the effects of the economic crisis and build resilience,“ says V. Braziūnaitė.
Although the social business sector in Lithuania is still in its infancy, the local government level is crucial for the coherent and sustainable development of the sector, and LISVA is submitting its proposals to the political parties with the hope that they will be included in the parties' local election programmes:
– Encourage the accelerated development of social business at a local level;
– Ensure a smoother and faster transfer of public services to social businesses and other NGOs;
– Ensure a transparent and open policy-making process involving all stakeholders in this area;
– Strengthen the effectiveness of EU investment and its intended impact on the development of social business;
– Promote and foster dialogue on social business development and investment with social partners.
„We hope our proposals will be carefully considered and parties will find opportunities to include them in their programmes. We are ready to work constructively with our elected representatives in local municipalities,“ says V. Braziūnaitė, Head of LISVA.
