INCLUSION THROUGH ENTREPRENEURSHIP (ITE)

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1 INCLUSION THROUGH ENTREPRENEURSHIP (ITE) NEW VOCATIONAL PROFILES, THE COMPETENCES OF A MANAGER/ENTREPRENEUR, FUNDING FORMS FOR SOCIAL ENTERPRISES Speaker Dott. Alfonso Santaniello

2 NEW VOCATIONAL PROFILES Non Profit Managers Even if in the third sector the spirit of co-operation dominates and there is little space for a role as protagonist, the manager is the real reference point. The head of a third sector organisation should have characteristics such as knowing how to mediate between the ideal and social aims of the association and the hard rules of the market. The criteria and managerial logic should be the same as for a normal profit making company but the approach should be different because solidarity has its rhythms and its own rules. In fact, in non profit organisations money is a means, a tool which is needed to fulfil the objectives of the organisation to provide high quality services or to diffuse an ethical value. In substance, the non profit manger should have a good culture of inexpensiveness i.e. if he/she is too interested in the profitability he/she risks losing sight of the social aim, if on the contrary he/she is too kind hearted the risk is that when encountering the first economic problems the structure could collapse.

3 SPECIFIC COMPETENCES OF THE NON PROFIT MANAGER A non profit manager should know how to: Manage the enterprise without maximum profit as an objective but economic and financial balance; Use to the full the resources in the company since a social enterprise can fundamentally count on motivated staff; Promote results obtained by the organisation and favour the maximum diffusion possible of methods used; Manage the social enterprise with transparency and involvement ; Control the accounting situation of the organisation and rationalise costs; Structure the offer of employment opportunities; Motivate, prepare professionally and help both dependent staff and voluntary staff to develop; Have faith in themselves and believe in what they are doing; Plan development strategies

4 COMPETENCES OF THE ENTREPRENEUR (1/4) An entrepreneur should possess complete and in depth knowledge regarding the following areas: Managerial knowledge Managerial knowledge is required for all new entrepreneurs independently of the sector in which they intend to operate. This concerns the elaboration of a feasibility study, the construction of an economic-financial plan and the choice of the legal form which are indispensable in the start up phase. In the consolidation phase, one needs to have confidence in marketing, finance, management, organisation of production and staff management. Technical knowledge Technical knowledge of the sector is indispensable to start up a social enterprise activity. As well as theoretical knowledge acquired at University or in a training course, one needs to gain on the job experience as a worker or as a volunteer in the field that one has to decided to work in.

5 COMPETENCES OF THE ENTREPRENEUR (2/4) Competencies that specialists define as transversal are: Having the capacity to decide and act autonomously What is indispensable is the autonomy of judgement, making decisions alone, without being influenced by others. The most important thing is that one s own decisions are always in line with the strategic project. Being determined One needs to be very determined because there is a lot to do from the initial idea to creating one s project. Determination is fundamental in order to keep going to be able to realise one s idea and bring the project to life. One should not become obstinate and here there are other characteristics that help the entrepreneur: flexibility and adaptability. Being good at timely changing along the way, adapting oneself and one s company to new environmental conditions.

6 COMPETENCES OF THE ENTREPRENEUR (3/4) Having leadership skills. Fundamentally the entrepreneur is a person who fulfils objectives that he/she has given himself/herself undertaking activities that others, his/her collaborators, undertake. An attitude to guide and manage people is of particular importance for this : exercising leadership. The capacities that an entrepreneur should know how to exercise are technical, human and conceptual. Each of these capacities is different according to the organisational level: the lower the level the more important the technical skills, the higher the level the more important the conceptual abilities. Human capacity and interpersonal relations are always important for any level of responsibility. As well as communication skills, leadership is important, i.e. the capacity to simulate others work, to guide them, manage them, delegate them more or less certain responsibilities.

7 COMPETENCES OF THE ENTREPRENEUR (4/4) Having communicational skills. This is the capacity to exchange and transfer information and messages in an efficacious way to people and the capacity to read or hear what collaborators are saying to the entrepreneur. This is the fundamental vehicle to establish relationships among the components of a work group. Thus, the entrepreneur should use and co-ordinate all communication tools required to be able to relate with internal and external beneficiaries

8 MARKETING HEADS (1/2) Marketing is now of vital importance for a non profit organisation. All the main associations which live on the gathering of funds to finance activities use marketing and direct marketing techniques. Tools such as telemarketing, direct mail or excerpts in newspapers and magazines, are part of the daily bread and the fulcrum of activities of a solidarity association which needs to go externally and to the general public to attract resources Telemarketing Telephone contact has numerous advantages: one can explain the sense of the initiative and clarify any doubts of the person contacted. Direct mail The most used initiatives in the third sector are by post. Fliers, magazines, payment slips. When mailing the marketing head needs to decide according to the objectives, what material to send, what type, the format, colours, graphics, reading content ease

9 MARKETING HEADS (2/2) Excerpts in newspapers The national press is a wonderful tool to let the general public know about our initiatives; For these the main thing is to decide the timing to publish an excerpt so as to obtain maximum return. Furthermore, one needs to choose a very defined target group and use messages which are clear for everybody with a simple title and clear text, non dispersive graphics and a slip at the end. External relations Often third sector organisations pay little importance to public relations and, thus, delegate the duty of keeping contacts and building relationships with the outside world to a person who does other things in the association or is not specifically trained in this field. The bigger organisations in the third sector which are on a national level have a head with the main duty of managing relationships with the outside world.

10 PRESS OFFICERS A frequently more important role for non profit organisations is that of press officer who is responsible for contact with the media and should be the image of the non profit organisation. He/she should prepare leaflets and brochures, organise press conferences, undertake interviews with those responsible for the organisation, is physically present and intervenes when required to act as a testimony of the organisation on television, in talk shows, in debates during big events such as concerts or other exhibitions

11 SOCIAL JOURNALISTS AND ADVERTISING STAFF Social Journalists: The majority of non profit organisations, have their own reference periodical. In order to be a journalist working in social themes, one needs to be prepared to be freelance, collaborating with different headlines but needs to bear in mind the fact that, at the beginning, activity will be voluntary. Advertising staff for the non profit sector An advertiser who is expert in social themes is a professional figure which today is slowly gaining ground bearing in mind the requests of a growing market. It is not really a non profit job but is a job which requires good knowledge of social themes and the reality of the third sector.

12 PERSONNEL HEADS An emerging and strategic figure in non profit companies is the Personnel Head. Human Resource Managers should be involved with two different types of collaborators: Dependent staff Volunteers His/her role is to select and recruit, motivate and create constructive working relationships with them. In particular he/she should: manage organic needs and plan any recruitment campaigns; know the quality of the people who are working for the association well; establish career paths to reduce the risk of an excessive and harmful turnover; control productivity; understand who is more able to adapt to the style of non profit organisations; foresee training courses.

13 NON PROFIT SECTOR COMPUTER STAFF A computer expert does not have great difficulty in finding work and this is true even if one refers to non profit sector enterprises. There are social co-operatives which organise computer courses for children, young people and adults, associations which offers services of telehelp to old people, which involves creating a phone contact network (or videocamera) with people who need immediate help, such as old people. For telehelp, however, more than computer experts, one needs operators with good communication and relational skills. One of the major intervention areas is surely the Internet. The creation and management of a website is an activity which is requested by non profit organisations. Another interesting field is that of planning specific programmes, such as databases. In fact, a good database determines the success of an organisation that wants to raise funds

14 NON PROFIT SECTOR BANKERS In banking foundations, in traditional banks, in new ethical finance institutions, there are gaps for a type of professionalism which is in part yet to be invented: that of banking expert of the non profit sector. He/she should not only have a good financial preparation, but also good knowledge of the area, of the third sector, of whom it comprises, of the dynamics which affect it.

15 TRAINING REQUIREMENTS The Third sector requires flexible vocational profiles from training market to be able to respond to new needs of users. Training market offers low level non unitary courses- (ESF) or theoretical courses with high level titles (master post degree). Intermediate level training missing (continuing training) not only from quantity but also quality point of view needing contents responding to needs of "life long learning" of third sector operators. Should have initial bilan des competences and interviews and subsequent definition of training plan. More delivery of training to staff already working in third sector All third sector organisations have recognised strategic role of training. They do not see training courses as mere knowledge transfer vehicles but have wider concepts- should include motivation, working as team, conflict management, assistance relationships, computer and language skills

16 INCLUSION THROUGH ENTREPRENEURSHIP (ITE) FUNDING FORMS FOR SOCIAL ENTERPRISES Speaker Dott. Alfonso Santaniello

17 BRIEF PANORAMA OF LEGISLATION ON SOCIAL ENTERPRISES IN ITALY - Law 27 February 1985 N. 49, Marcora Beneficiaries: cooperative societies and their consortia belonging to any economic activity sector excluding construction cooperatives. Initiatives admissible: investments for: purchase of areas and/or buildings undertaking of wall works purchase, modernisation and rebuilding of machines, equipment, plant including vehicles with number plates.

18 BRIEF PANORAMA OF LEGISLATION ON SOCIAL ENTERPRISES IN ITALY - Law 381/1991 (Distinction of social cooperatives) Type A Cooperative (social medical and educational services) Type B Cooperative (employment insertion of disadvantaged people) Type C Cooperative with mixed object (both types of activities cited) Social Consortia (consortia whose social basis is formed by social cooperatives- less than 70%) Characteristics of concessions: Disadvantaged people (b type social cooperatives) need to be members and be at least 30% of total workers in cooperative. In these conditions, welfare and obligatory assistance are waived for these members.

19 LEGISLATION ON SOCIAL ENTRPRISES IN ITALY (concessions) Law 59/92: Dispositions in favour of cooperatives and social cooperatives. Social cooperatives can access concessions provided by law 215/92, as long as 1. They are enterprises to all effects (VAT number and registration in Register of Enterprises) 2. They respect the requisites of female participants: 2/3 people in board of directs and of quotas of capital need to be "female".

20 LEGISLATION ON SOCIAL ENTRPRISES IN ITALY (concessions) Law 59/92: Dispositions in favour of cooperatives and social cooperatives At the Ministry, there is the Fund to promote new cooperatives, even social, with receipt of 3% of annual profits of all Italian cooperatives that are not members of category associations to fund project that promote and develop cooperation. Each year a call is published. The sum funded is not defined but varies from year to year. Initiatives to promote self employment and entrepreneurship have also been promoted at regional and local level.

21 LEGISLATION ON SOCIAL ENTRPRISES IN ITALY (concessions) - - Decree Law n. 460/97 Constitutive Law on ONLUS - Law 448/98 - art. 51 Concessions for social cooperatives Finances new social cooperatives in industrial, agricultural, handicraft and services to enterprises sectors. Offers financial support and tutoring to already existing social cooperatives that present projects to consolidate and develop their own activities.

22 LEGISLATION ON SOCIAL ENTERPRISES IN ITALY (concessions) Decree 185/2000 Title I (incentives in favour for self employment): Concession: contributions without a loan and mortgages with concessionary rates Beneficiaries: B type social cooperatives, i.e. those of employment insertion characterised by presence in quota of at least 30% of disadvantaged people. Types affected: Newly created cooperatives Existing and operative cooperatives.

23 LEGISLATION ON SOCIAL ENTERPRISES IN ITALY (concessions) Decree 185/2000 Title I (incentives in favour of self employment): Characteristics: Presence of disadvantaged groups Not disadvantaged components in a majority of number and capital of young people between 18 and 35 years of age Residents in Objective 1 and 2 Regions of Structural Funds, in so called phasing out areas (those admitted to a transitory regime), and more generically in areas that present a notable imbalance between supply and demand of labour, as identified by the Ministry of Labour. Cooperatives that operate in medical and educational sectors are excluded

24 LEGISLATION ON SOCIAL ENTERPRISES IN ITALY (concessions) - Initiatives admissible: Production, transformation and commercialisation of agricultural products Production of goods in industry and handicrafts Supply of services to enterprises - Initiatives excluded: Services to people and public administrations Socio-medical activities Commercial and tourism activities

25 LEGISLATION ON SOCIAL ENTERPRISES IN ITALY (concessions) - FINANCING FOR INVESTMENT Contributions without security Prime rate mortgage (in Objective 1 regions up to 80-90% of the investment; in the centre north up to 60-70% of investment) - FINANCING FOR MANAGEMENT (not foreseen for agricultural sector) Contributions without security in the respect of the de minimis threshold equal to ,00 to cover management costs for first three years - FINANCING FOR TECHNICAL TRAINING AND/OR ASSISTANCE Contributions without security in the respect of the de minimis threshold to cover training and technical assistance costs

26 LEGISLATION ON SOCIAL ENTERPRISES IN ITALY (concessions) Law 193/2000: favour employment activities for convicts. Convicts admitted t alternative measure of detention are considered to be disadvantaged groups. This is an important law for social cooperative that work in reinsertion of disadvantaged groups: tax concessions are foreseen for those enterprises that take on convicts and for whom they undertake training activities.

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