Since the publication of the 'European Union White Paper on Economic Policy' in 1994, there has been a growing interest in the social economy both in Ireland and in the EU generally. That interest stems from the perceived potential of the social economy to contribute to employment creation as well as having a role in the provision of new services. The European Commission defined the social economy as "new types of social service provision within a continuum between commercial service provision and statutory provision". This definition was subsequently accepted by the National Economic and Social Forum which stated that the social economy was a 'third sector' neither public nor private but 'representing a continuum of delivery possibilities between fully commercial and public provision' (NESF, 1995). Subsequently, the distinct characteristics of the enterprises that operate in the social economy were identified by PLANET, the network of area-based partnerships. In 1997 they published 'Building the Social Economy' which identifies three forms of social enterprise.
At the more commercial end of the spectrum are community businesses that generate revenue largely from trading income.
Mid-way along the spectrum are social enterprises based on the concept of deficient market demand and therefore relying on a mix of revenues including public sector support.
Finally, there are social enterprises that are based exclusively on public sector contracts. This typology was accepted by the Steering Group on the Social Economy established under Partnership 2000 . That Steering Group met throughout 1997 and 1998 and in July 1998 presented its report. That report has now been accepted by Government. Click here to read the recommendations of the Steering Group. Although the concept of the social economy is relatively new, social enterprises have a much longer history. Consequently, the implementation of policy in relation to the social economy can benefit greatly from existing good practice in this area. During 1996 and 1997, several social enterprises were supported by the EMPLOYMENT Initiative in Ireland. A volume of case studies of these enterprises is soon to be published and it is intended that this will contribute to the ongoing accumulation of knowledge on the social economy. This issue of EMPLOYMENT in Focus provides an overview of the social enterprises in EMPLOYMENT.
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