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CZECH REPUBLIC Eva Fraňková SOCIAL ENTERPRISES AND THEIR ECOSYSTEMS IN EUROPE Country report CZECH REPUBLIC Eva Fraňková Social Europe This report is part of the study “Social enterprises and their ecosystems in Europe” and it provides an overview of the social enterprise landscape in Czech Republic based on available information as of December 2018. It describes the roots and drivers of social enterprises in the country as well as their conceptual, fiscal and legal framework. It includes an estimate of the number of organisations and outlines the ecosystem as well as some perspectives for the future of social enterprises in the country. This publication is an outcome of an assignment financed entirely by the European Union Programme for Employment and Social Innovation "EaSI" (2014-2020). For further information please consult: http://ec.europa.eu/social/easi Manuscript completed in April 2019 1st edition Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of the following information. Luxembourg: Publications Office of the European Union, 2019 © European Union, 2019 Reuse is authorised provided the source is acknowledged. The reuse policy of European Commission documents is regulated by Decision 2011/833/EU (OJ L 330, 14.12.2011, p. 39). For any use or reproduction of photos or other material that is not under the EU copyright, permission must be sought directly from the copyright holders. You can download our publications or subscribe for free at: http://ec.europa.eu/social/publications If you would like to receive regular updates about the Directorate-General for Employment, Social Affairs and Inclusion sign up to receive the free Social Europe e-newsletter at: http://ec.europa.eu/social/e-newsletter FB account: https://www.facebook.com/socialeurope/ Twitter account: @EU_Social Europa page on Social entrepreneurship: https://europa.eu/!mq33GV SOCIAL ENTERPRISES AND THEIR ECOSYSTEMS IN EUROPE Country report CZECH REPUBLIC Eva Fraňková This report provides an overview of the social enterprise landscape in the Czech Republic based on available information as of December 2018. The report updates a previous version, submitted by ICF Consulting Services to the European Commission in 2014. The current report has been prepared as part of a contract commissioned by the European Commission to the European Research Institute on Cooperative and Social Enterprises (Euricse) and the EMES International Research Network (EMES). Eva Fraňková from Masaryk University was in charge of producing the report. The author acknowledges the EU-level coordination team: Carlo Borzaga, Giulia Galera, Barbara Franchini, Stefania Chiomento, and Chiara Carini (Euricse) and Rocío Nogales, Sophie Adam, Kathleen Uyttewaal, and Teresa Bolaños (EMES), as well as Nadia Johanisova (member of the advisory board) and Mihaela Lambru (regional coordinator). In addition, the author thanks the following stakeholders who contributed with valuable input: Petra Francová, Nadia Johanisova, Karel Rychtář, Svatava Škantová, Markéta Vinkelhoferová, and all other stakeholders involved during the stakeholder consulation process. Recommended citation: European Commission (2019) Social enterprises and their ecosystems in Europe. Updated country report: Czech Republic. Author: Eva Fraňková. Luxembourg: Publications Office of the European Union. Available at https://europa.eu/!Qq64ny Countries included in the three social enterprise mappings by the European Commission No Country TYPE 2014 2016 2018-19 1 Albania Fiche - - 2 Austria Report - 3 Belgium Report - 4 Bulgaria Report - 5 Croatia Report - 6 Cyprus Report - 7 Czech Republic Report - 8 Denmark Report - 9 Estonia Report - 10 Finland Report - 11 France Report - Former Yugoslav Republic of 12 Fiche - - Macedonia 13 Germany Report - 14 Greece Report - 15 Hungary Report - 16 Iceland Fiche - - 17 Ireland Report - 18 Italy Report - 19 Latvia Report - 20 Lithuania Report - 21 Luxembourg Report - 22 Malta Report - 23 Montenegro Fiche - - 24 The Netherlands Report - 25 Norway Fiche - - 26 Poland Report - 27 Portugal Report - 28 Romania Report - 29 Serbia Fiche - - 30 Slovakia Report - 31 Slovenia Report - 32 Spain Report - 33 Sweden Report - 34 Switzerland Report - - 35 Turkey Fiche - - 36 United Kingdom Report - Social enterprises and their ecosystems in Europe | Country report CZECH REPUBLIC 6 | Table of contents TABLE OF CONTENTS6 List of acronyms 8 List of figures and tables 9 Executive summary 10 1. BACKGROUND: SOCIAL ENTERPRISE ROOTS AND DRIVERS 15 2. CONCEPT, LEGAL EVOLUTION AND FISCAL FRAMEWORK 21 2.1. Defining social enterprise borders 22 2.1.1. The EU operational definition of social enterprise 22 2.1.2. Application of the EU operational definition of social enterprise in the Czech Republic 22 2.1.3. De facto social enterprises 25 2.1.4. Definition of social enterprises in the Czech Republic 31 2.2. Legal evolution 34 2.2.1. Ex lege social enterprises: social cooperative 34 2.2.2. Church compensations 38 2.2.3. The law on social enterprises 38 2.3. Fiscal framework 40 3. MAPPING 43 3.1. Measuring social enterprises 44 3.2. Social enterprise characteristics 48 3.2.1. Fields of activity and target groups 48 3.2.2. Workforce and volunteers 50 3.2.3. Sources of income 50 3.2.4. Impact 53 Social enterprises and their ecosystems in Europe | Country report CZECH REPUBLIC Table of contents | 7 4. ECOSYSTEM 55 4.1. Key actors 56 4.2. Policy schemes and support measures for social enterprises 59 4.2.1. Support measures addressed to all enterprises that fulfil specific criteria 59 4.2.2. Support measures targeting social economy/non-profit organisations 62 4.2.3. Support measures specifically addressed to social enterprises 62 4.3. Public procurement framework 65 4.4. Networks and mutual support mechanisms 69 4.4.1. Representative bodies 69 4.4.2. Regional and local consortia 71 4.4.3. Support networks 71 4.4.4. Network running entrepreneurial activities and social enterprise incubators 73 4.5. Research, education and skills development 73 4.6. Financing 75 5. PERSPECTIVES 77 5.1. Overview of the social enterprise debate at the national level 78 5.2. Constraining factors and opportunities 79 5.2.1. Constraining factors 79 5.2.2. Opportunities 83 5.3. Trends and future challenges 84 5.3.1. Summary of positive trends 84 5.3.2. New emerging forms of social enterprises in the Czech Republic 85 6 APPENDICES 88 Appendix 1. The EU operational definition of social enterprise 89 Appendix 2. Data availability report 92 Appendix 3. Exploratory case studies 98 Appendix 4. Reference list 115 Appendix 5. List of stakeholders engaged at national level 119 Social enterprises and their ecosystems in Europe | Country report CZECH REPUBLIC 8 | List of acronyms List of acronyms > ANNO Association of Non-governmental Non-profit Organisations of the Czech Republic > ARES Access to Registers of Economic Subjects > BKB Bike Kitchen Brno (case study) > CACR Cooperative Association of the Czech Republic > CR Czech Republic > CS Česká spořitelna (bank) > CSA Community supported agriculture > CSO Czech Statistical Office > CSOB Česká obchodní banka (bank) > CSR Corporate Social Responsibility > CVNS Centre for Non-profit Sector Research > DB Diakonie Broumov (case study) > DIY Do-It-Yourself > EaSI Employment and Social Innovation programme of the European Commission > EIF European Investment Fund > ERDF European Regional Development Fund > ESF European Social Fund > IOP Integrated Operational Programme > IROP Integrated Regional Operational Programme > LAG Local Action Group > MfRD Ministry for Regional Development > MIT Ministry of Industry and Trade > MoLSA Ministry of Labour and Social Affairs > NPO Non-profit Organisation > OPE Operational Programme Employment > OPHRE Operation Program Human Resources and Employment > PBC Public Benefit Company Social enterprises and their ecosystems in Europe | Country report CZECH REPUBLIC List of acronyms, figures and tables | 9 > SME Small and Medium Enterprises > TAČR Technology Agency of the Czech Republic > TESSEA Thematic Network of Social Economy > WISE Work Integration Social Enterprise List of figures and tables > Figure 1. Comparison of social enterprises and “ordinary” companies from Pardubice region > Table 1. Analytical overview of the compliance of individual legal forms used by the Czech de facto social enterprises with the EU operational definition > Table 2. TESSEA principles of a WISE > Table 3. Analytical overview of the compliance of the ex lege social enterprises, taking the legal form of a social cooperative, with the EU operational definition > Table 4. Main legal developments relevant for both ex lege and de facto social enterprises in the Czech Republic > Table 5. Overview of main fiscal arrangements relevant for both ex lege and de facto social enterprises in the Czech Republic > Table 6. Estimated numbers of both ex lege and de facto potential social enterprises in the Czech Republic, 2014-2018 > Table 7. Key actors in the Czech social enterprise ecosystem > Table 8. Overview of main legal arrangements related to employment of health-disabled people > Table 9. Overview of available surveys on social enterprises in the Czech Republic (as defined by TESSEA and/or MoLSA principles) and their selected results in terms of main social enterprise characteristics (such as their legal forms, target groups etc.) Social enterprises and their ecosystems in Europe | Country report CZECH REPUBLIC
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