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Eastern Europe Bulgaria According to the European Commission 2016 Country Reports Which Analyze Member States' Economic Policie

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Eastern Europe Bulgaria According to the European Commission 2016 Country Reports Which Analyze Member States' Economic Policie Eastern Europe Bulgaria According to the European Commission 2016 Country reports which analyze Member States' economic policies, the Bulgarian economy has been gradually emerging from the crisis, but a broad-based recovery is not yet in sight. The necessary fiscal consolidation moderates domestic demand and still prevalent risks deter private investment despite healthy net export growth and positive labor market trends. Social and economic situation in the country The gradual economic recovery has spurred job creation and decreased unemployment. Nonetheless, high long-term unemployment, low labour market participation and high skills mismatches point to considerable remaining challenges for labour market and education policies. Moreover, demographic issues, such as outward migration and shrinking working-age population, pose a risk to the long-term growth potential of the economy. Labour market reforms have also progressed but an integrated approach for social groups that are marginalised in the labour market has yet to be developed. Moreover, a transparent mechanism for setting the minimum wage and minimum social security contributions still remains to be developed. The Preschool and School Education Act was adopted by the Parliament in September 2015, introducing reforms in this area. However, the non-legislative barriers to increasing the participation of disadvantaged children, in particular Roma, in preschool and primary education are not yet addressed in a consistent manner. The territories: North Central Region, South Western Region Sofia is the largest and the capital city of Bulgaria, and ranks 47th in terms of having the highest population in the entire European Union. Sofia produces as much as 34% of the entire GDP of Bulgaria. This growth rate of Sofia since years exceeded the national average GDP. Its current GDP per capita stands at 72% of the European Union average. Gabrovo, on the other hand, has a strong industrial profile as its economic indicators are better than the national average. Unemployment in the area is traditionally low and employment increases in 2013 and 2014. There is also a high inflow of foreign investment and much better absorption of EU funds - especially in Gabrovo Municipality. Local taxes in municipalities in the region are among the lowest in Bulgaria. The big challenge in front of Gabrovo are highly deteriorated demographics. Social and Solidarity Economy Organizations’ role in this context SSE is a part of real economy as well as of Civil Society while the result of enterprises is reinvested into financing activities to achieve social goals and only a reasonable part is covering overheads. By its functionality, SSE is efficient in achieving social inclusion of disadvantaged strata of the population, thus being distinguished from corporate economy, although SE- subjects operate entities under the trade law. The CSOs are also very active in the field of SSE. A Declaration of the "Social Enterprises in Bulgaria" Forum was signed on October 14, 2014 in Sofia. It indicates that social enterprises can play an important role in the development of Bulgarian economy and have the potential for sustainable economic growth, inclusive various social groups. The Roadmap for SSE (2015-2020) was drafted by the Bulgarian Centre for Not-for-profit law and the Bulgarian Charity Aid Foundation. Its aim is to provide vision and steps for the development of social enterprises in Bulgaria. The roadmap was made after consultations with representatives of NGOs engaged in the topic of development of social entrepreneurship (the members of the "Social Enterprises in Bulgaria" Forum) and representatives of state institutions related to the envisaged measures (Ministry of Labor and Social Policy, Employment Agency, State Agency for People with Disabilities, the Agency for SMEs). Today, the Forum efforts are focused on the development of a national Social Entrepreneurship Index. Eventual public/legislative initiatives to support/which affect those sectors On 30th of January the Council of Ministers adopted an Action Plan for Social Economy 2014 – 2015. This was the first Action Plan for implementation of the National Concept of social economy in Bulgaria. It included measures, grouped in priorities, which were intended to improve the framework and create favorable ecosystem for social enterprises in Bulgaria. On 10th March 2016, the Council of Ministers adopted an Action Plan for Social Economy for 2016 - 2017. This document aims to develop and promote social economy and entrepreneurship. The plan sets out a number of awareness campaigns and forums to enhance the visibility of social enterprises in Bulgaria and to present good practices in this field. To ensure institutional support, it includes the organization of an academy for social entrepreneurs. Social economy curricula will be developed for training service providers. Today, social economy and social entrepreneurship are a separate investment priority in the Human Resources Development Operational Programme (2014-2020), thus further emphasizing the contribution of initiatives and measures that will enhance the opportunities for consolidating the social economy sector. The Ministry of Labor and Social Policy, on the other hand, is focused on the draft of a Social Economy Act which is expected to be discussed in the National Parliament in the autumn. 1. Bakery Social Club Organic agriculture and food sovereignty | Critical consumption I. Short description Bakery Social Club was founded in 2013 as a social enterprise in Gabrovo thanks to the funds received by the "Trust for social achievement"; in legal terms, it is a single person limited liability company. Its activities are in the field of bakery, bread production, organization of events with cultural, social and educational programs for youth and adults with and without special needs. II. Proposed activities Daily the Bakery Social Club produces nearly 200 pieces of sourdough products, such as wholemeal wheat bread, wholemeal rye bread, French baguettes and croissants. In addition, young people who left social institutions (homes for children without parental care) are trained and employed in the enterprise. "Live gatherings" are organized weekly, bringing together people from the community through different forms of domestic crafts, kneading bread, creative writing, music and discussions. People from vulnerable groups are invited, encouraged and supported by the entire team and the community to actively participate in these activities, with the aim of bringing about a positive effect in their cultural and social integration. III. Management model and stakeholders involvement The company is managed by a manager, who is also chief technologist and trainer. The plan and program of the designed activities is prepared monthly, in coordination with the whole team and partners. The latter include institutions working with abandoned children, the local vocational school for tourism "Pencho Semov" and many community centers, cultural institutions, independent artists and NGOs. IV. Turnover and job creation/quality The social enterprise reaches an average monthly turnover of 3,000 BGN (1,500 EUR approximately), which provides full-time employment for two people: the manager (chief baker) and one worker (a girl without parents trained in the organization). The turnover covers all taxes, insurance, overhead costs and raw materials costs. Money from net profit is reinvested for the improvement of the materials and the technical base, set aside for educational programs, to hire new staff (disadvantaged people) and to organize cultural events. The quality of the products is monitored every three months, as required by the applicable law, which also allows for the improvement of the production of sourdough bread. The job quality is also ensured through training opportunities provided to the organization’s employees. V. Social and environmental externalities The involvement of young people from vulnerable groups enables the team of the enterprise to take care and support them in their personal and life plan. The organized events on the territory provide a supportive environment for the cultural and social integration of disadvantaged brackets of the local population. In addition, the production of sourdough bread follows an old local recipe, which contributes to the preservation of the cultural heritage of the region. The bread is made without chemical enhancers and raising agents, using only certified flours and raw materials bought near the town of Gabrovo, allowing for a small carbon footprint of the products. VI. Communication and advocacy Bakery Social Club is working for the revival of cultural and culinary traditions of the region, offering quality and healthy products to the table of the people. With the added value of this production, customers consciously participate in the creation of the conditions for a decent and fair life of disadvantaged people and contribute to the general welfare of the local community. VII. Networking, affiliations and openness of the good practice to the existing networks At present, the Bakery Social Club is a member of the program Bread Houses Network Bulgaria of the International Council for Cultural Centers. As part of this network, the club exchanges experiences and good practices with teams from other cities in Bulgaria, as well as members of the network outside Bulgaria. VIII. The good practice’s economic and social impact and potential Through its activities, the enterprise
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