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Eurasia Partnership
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Social Enterprise

Program Goal:
To promote the development of social enterprises, businesses that operate primarily with social objectives as the ‘bottom line’ and which reinvest profits back into the social objectives of the business

Program Justification:
Social enterprises encompass many of the attributes that are necessary for the growth of small and medium sized businesses. By harnessing for-profit strategies, mission-driven organizations serve as new engines of innovation, job creation and economic growth in the social sector.

In Georgia, social protection was a major focus of the new government immediately after the Rose Revolution, and the government introduced a number of new policies and reforms in this sector. Yet the events in November 2007, when the government dispersed thousands of protesters gathered in front of parliament, demonstrated the deep dissatisfaction of Georgian citizens with the provision of social protection services.

EPF’s Caucasus Research Resource Centers’ (CRRC) 2007 annual household survey found that 36% of Georgian respondents consider themselves unemployed. In the same survey, as many as 26% of households reported that their income had declined since 2006. Numerous groups in Georgia still lack prospects for employment and opportunities to escape the cycle of poverty. The economic downturn that has followed the August 2008 war with Russia also impacts the government’s ability to provide social assistance: an October 2008 Post-Conflict Survey conducted by CRRC found, 48% of Georgian families rely on state support (pensions, social aid, vouchers, or other support). However, many Georgian organizations, both non-profit and for-profit, are working independently and in cooperation with the government to provide social protection services. They are largely dependent on donor funding and, while they sometimes have a strong volunteer base, they lack significant financial resources.

Bearing the scale of the problem in mind, EFP has launched a new program to introduce the concept of social enterprise among Georgian civil society and business organizations. After an extensive preparatory period, EPF will provide technical and grant assistance to support a small number of social enterprise projects, which will serve well-defined target groups and create models for consideration and replication. EPF has partnered with the Prague-based Czech Fundraising Center in implementing social enterprise activities.

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