1 “Social Inclusion through Women Economic Empowerment in Montenegro (JAKA)” „Soziale Inklusion durch wirtschaftliche Ermächtigung von Frauen“ Research about possibilities for women economic empowerment (CARE Balkans, in house research and guidelines)
13
Embed
Research about possibilities for women economic empowerment · sustainable business plan. 2.2 Social entrepreneurship in Montenegro There are three segments of social entrepreneurship
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
“Social Inclusion through Women Economic Empowerment in Montenegro (JAKA)”
„Soziale Inklusion durch wirtschaftliche Ermächtigung von Frauen“
Research about possibilities for women economic
empowerment (CARE Balkans, in house research and guidelines)
2
Contents
1. Overview of the target regions .......................................................................................... 3
1.1 Pljevlja area .................................................................................................................. 3 1.2 Nikšić area .................................................................................................................... 3
2.1 Definition and forms of social entrepreneurship ........................................................ 3 2.2 Social entrepreneurship in Montenegro ..................................................................... 4 2.3 Women entrepreneurship ........................................................................................... 5
3. Capacities of the partner organizations ............................................................................. 5
3.1 Bona Fide Pljevlja ......................................................................................................... 6 3.1.1 General information .................................................................................................. 6 3.1.2 Capacities for economic empowerment ................................................................... 6 3.1.3 Conclusions ................................................................................................................ 8
3.2 Centar za romske inicijative Nikšić .............................................................................. 9 3.2.1 General information .................................................................................................. 9 3.2.2 Capacities for economic empowerment ................................................................... 9 3.2.3 Conclusions .............................................................................................................. 11
4. Market opportunities for individual business start ups ................................................... 12
3
1. Overview of the target regions
1.1 Pljevlja area
With a total area of 1,346 km2 (520 sq mi), Pljevlja is the third largest municipality in
Montenegro. In 2011, the municipality of Pljevlja had a population of 30,786. Pljevlja is also
one of the main economic engines of Montenegro. The only thermal power plant in
Montenegro, which provides 45% of the electric power supply for Montenegro, is situated
outside Pljevlja as well as the biggest coal mine with 100% of the coal production in
Montenegro. Zinc and lead can be found in Šuplja stijena mine. The richest municipality with
forest in Montenegro is Pljevlja and its lumber industry. Agriculture is widespread in the
whole municipality. Pljevaljski sir (Pljevlja's cheese) is considered a delicacy. There is big
potential for ecological and winter tourism.
According to MNE Statistical Office, there are around 700 small and medium enterprises
established in Pljevlja and they work in sectors of various productions, construction
engineering, trade, catering and various services. Total number of employees is estimated at
6.500. There are 2.895 officially registered unemployed ones and every fourth citizens of
Pljevlja is unemployed.
According to the municipal register of NGOs for 2015, there are 52 NGOs active in Pljevlja
area.
1.2 Nikšić area
Nikšić is the largest municipality by area (2.065 m2) and second most inhabited in MNE with
population of 75,282 citizens. It is an important industrial, cultural, and educational center of
MNE. The main employers are a steel mill (Nikšićka Željezara), bauxite mine, and Trebjesa
brewery (Nikšićka Pivara).These big industries have struggled to survive the collapse of the
socialist economy, but have since recovered. The process of privatization is either finished or
still in progress for some of these industries.
According to the Statistical Office of MNE, there are around 19.000 employees in the
municipality and 1.600 companies. There are also around 4.100 unemployed ones.
According to the municipal register, there are around 300 NGOs working in Nikšić area.
2. Women/Social entrepreneurship
2.1 Definition and forms of social entrepreneurship
EC defines social enterprise as “an operator in the social economy whose main objective is to
have a social impact rather than make a profit for their owners or shareholders. It operates
by providing goods and services for the market in an entrepreneurial and innovative fashion
4
and uses its profits primarily to achieve social objectives. It is managed in an open and
responsible manner and, in particular, involves employees, consumers and stakeholders
affected by its commercial activities”. Social enterprises make up 10% of small and medium
enterprises in EU and employees in these companies make up 6% of the total number of the
employees1.
The term “Social Enterprise” describes the purpose of a business, not its legal form. At the
simplest level, a social enterprise can be a trader who has decided to donate the majority of
the profit it makes to a good cause. Social enterprises may take a variety of legal forms
depending on local context. The process for establishing social entreprise will depend on
which legal form is chosen.
The key for success of social enterprises as well as any other enterprise is to have
sustainable business plan.
2.2 Social entrepreneurship in Montenegro
There are three segments of social entrepreneurship – employing marginalised groups (e.g.
disabled persons, minorities etc), social responsibility of the companies, and environment
protection. None of them is sufficiently developed in MNE2.
The Ministry of Labour and Social Welfare of MNE considers3 social entrepreneurship more
and more as a new instrument that will contribute to stronger social inclusion and
involvement of the most vulnerable population. However, the concept for development of
social entrepreneurship is still not developed in MNE. There is no any policy document or
specific legislation (specifically) dealing with it. There is no full understanding and
implementation of the concept. However, it is clear that when it comes to legislation, that
there are elements for development of social entrepreneurship in MNE.
Activities (related to social entrepreneurship) implemented so far are related to specific
projects and efforts of NGOs that work in line with social entrepreneurship concept. These
NGOs are utilising possibilities or framework that is provided by the Law on NGOs, Law on
Companies and legislation dealing with professional rehabilitation and employment of
disabled persons. These NGOs do have their products and services that are distributed at the
market. One of the NGOs that distribute4 products is Bona Fide from Pljevlja.
According to legal forms available in Montenegro, social enterprises may take the form of 1.
Co-operative; 2. Non for profit LTD (doo); or 3. Association of citizens. Non for profit LTD is
too expensive and administratively too demanding. There is not any case in practice that
cooperative in MNE serves as social enterprise. Therefore, the best current model for
developing social enterprise in MNE is to fit NGO activities within the current legislation.
The Law on NGOs in MNE is adopted in July 2011. NGO can fund its activities from its own
business activities (article 28). Article 29 of the Law defines precise conditions for doing
business activities. According to the Article, NGO can directly be involved in business activity
if it registers in the register of businesses and if income from doing business activity does not
go over 4.000 EUR per year.
1 “The Study on Social Entrepreneurship in MNE“, February 2016
2 Faculty of Economics, Podgorica - http://www.ekonomija.ac.me/sites/ekonomija.bild-
studio.me/files/multimedia/fajlovi/obavjestenja/2013/04/biznis_09_-_socijalno_preduzetnistvo.pdf 3 Press release of the Ministry, http://www.mrs.gov.me/vijesti/155195/SAOPsTENJE-Ministarka-rada-i-socijalnog-staranja-
Zorica-Kovacevic-otvorila-je-Konferenciju-Razvoj-drustvenog-preduzetnistva-u-Cr.html 4 NGOs cannot sell products directly but there are ways to distribute them through various channels.
5
According to the Ministry of Labour and Social Welfare, the next steps for developing social
entrepreneurship in MNE are developing clear definition of social entrepreneurship and
social entrepreneurs, considering possibility to introduce tax reliefs for development of
social entrepreneurship, and provide education, information and trainings about social
entrepreneurship for entrepreneurs but wider public as well.
There are two thinking related to development of the social entrepreneurship legislation in
MNE. One is to strategically and in the legislation define clearly what social enterprise
exactly is and enable legal formation of social cooperative. The other thinking is to establish
general legal framework for development of social entrepreneurship and enterprises.
However, NGOs that are the only one currently dealing with social entrepreneurship should
utilise possibility of current legislation so that their business ideas do not wait for adoption
of legislation that will regulate the work in social entrepreneurship5.
2.3 Women entrepreneurship
Women entrepreneur may be defined as a woman or group of women who initiate,
organize, and run a business. It could also be said that women who innovate, imitate or
adopt a business activity are called “women entrepreneurs”. Basically speaking, women
entrepreneurs are those women who think of a business enterprise, initiate it, organize and
combine the factors of production, operate the enterprise and undertake risks and handle
economic uncertainty involved in running a business enterprise.
Women’s participation in entrepreneurship varies around the world. While for example in
Pakistan, only 1% of women are entrepreneurs, there are 40% of women in Zambia that are
engaged in this activity. There are not exact data for MNE, but it could be estimated that
around 5% of women are involved in entrepreneurship in MNE, Estimation is based on
Global Entrepreneurship Data for South East Europe.
In 2012, an estimated 126 million women were starting or running new businesses in 67
economies around the world. In addition, an estimated 98 million were running established
businesses.
3. Capacities of the partner organizations When establishing and running a business, women face challenges such as:
access to finance
access to information
training
access to networks for business purposes
reconciling business and family concerns.
Bona Fides and CRI can play significant role in improving access to information for women,
proving training directly but more in cooperation with other actors (due to lack of their
capacity), enabling women to access the networks and expand their market and helping
women to improve their position in the families and therefore reconcile their business and
family concerns.
5 Roundtable: “Social Entrepreneurship in MNE“, February 2016