The Czech Republic lacks support for the social economy and entrepreneurship
December 27, 2021 News

The Czech Republic lacks support for the social economy and entrepreneurship

We are monitoring the unemployment rate and rejoicing at its consistently low value (it fell further to 2.6 percent in October!). We are interested in how to support economic growth so that the gross domestic product grows. But does this growth always bring development to society, does it increase the quality of human life? And are those who do not benefit from economic expansion and remain unemployed just people who do not want to work?

We know from the experience of our charitable services, which help people in various difficult life situations, that many unemployed people face obstacles in their job search. Whether it’s due to their health restrictions, ethnicity, or them living on the edge of society. The market is not interested in workers who are not flexible and efficient enough, need special working conditions, or have more employment support.

And even those who have jobs often work in undignified and precarious conditions to secure at least a minimum income, often at the expense of family life. Companies are trying to generate profit, but the social and environmental dimensions of their business are already outside their area of interest.

Respect for human beings and nature

Unlike the traditional concept of a market economy, the social one seeks to increase employment in a given locality, to involve people with various disadvantages, and to increase their quality of life, as well as overall social and cultural development concerning the environment. The social economy, therefore, leads not only to tackling employment but also to sustainable growth, strengthening solidarity and a fairer distribution of wealth, as it is based on respect for the human beings and nature and perceives work at all levels (as part of human identity, part of a community, etc.).

As Pope Francis called on a recent meeting of the "Economy of Francesco," it is necessary to "pursue a different kind of economy; an economy that brings life, not death, one that includes and does not exclude, that humanizes and does not dehumanize, one that takes care of the creation and does not despoil it (…), it is necessary to give a new soul to the economy.“

A more well-known term than the social economy is social entrepreneurship, which has been established in our country for years. The umbrella organization for social enterprises, the so-called Thematic Network of Social Economy, defines it as “business activities that benefit society and the environment.“ Social entrepreneurship plays an important role in local development and often creates employment opportunities for people with health, social or cultural disadvantages.

The profit is largely used for the further development of the social enterprise. For a social enterprise, making a profit is as important as increasing public benefit. ”Focusing on public, social, and environmental goals is the key element in distinguishing social enterprise from ordinary business. Respect for people is manifested here in decent work, decent working conditions, and in terms of caring for the family.

Focusing only on making a profit is not enough

It is, therefore, necessary to abandon the vision of profit-oriented economic growth that doesn’t take the impact on human lives (unemployed, working poor, etc.) and the environment into consideration, and to promote new models that enable social and environmental progress for society as a whole.

We, therefore, call for the promotion of a social economy and social entrepreneurship that will enable fair and sustainable growth. Unlike other European countries, we do not have social entrepreneurship enshrined in the Czech Republic. Social enterprises receive support from the state, but they encounter misunderstandings and bureaucracy of public administration bodies, insufficient support from the Labor Office, and other difficulties.

It is, therefore, necessary to legislate social entrepreneurship, develop a national strategy and action plan for the development of the social economy and social entrepreneurship in the Czech Republic, revise the forms of its support (including support for employment of other target groups - in addition to people with disabilities, such as the socially excluded). The long-term goal is greater awareness and recognition of the importance of the social economy and social entrepreneurship for society. Without political support, the social economy, and thus our society as a whole, will have limited opportunities for further development.

Taken from the Catholic weekly 50/2021 with the consent of the editors
Author: Mgr. Jana Klusáková Seďová, manager for advocacy activities of the Caritas Czech Republic in the social field
 Photo: Jan Hrubý