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The Space of the Social Enterprise: Chances and Experiences (ITALY)

Presented by Virginio Condello: at the Transnational Meeting in Cagliari, Sardegna 29th September 1998

Table Of Contents

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Premise

If we today would solve the problem to insert disadvantaged ones in the work we would choose between two different approaches:

The first, more ancient and by now less effectiveness, called of the "selected politics", consists in the favouring the insert in of subject in difficulty like employees, through helpful mechanism like the contribution in occupation account or the tax allowance, In its last evolution this tool concrete in Italy in the most recent provision of the Borse Lavoro and in Contratti di Pubblica Utilita. Also in Sardinia has been legislated in this direction from 1998 with the regional lawn. 33, that hadn't have the expected effects.

The second, evolved and more effective, called of the "active politics", and consists in supporting the enterprise of new initiatives by the subjects in difficulty, through the formation, the supporting at the planning and the supervising. The tools on this slope are a lot and flow all in the constitution of a new entrepreneurial initiative that involves the disadvantage persons directly.

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Active evolved politics: the Social Co-operatives

In this area is clear we must think about the best solution, inside the available legislative tools the best form of active politics for subjects that, not being able to start easily an entrepreneurial initiative need of advanced tools of support an counselling. This opportunity must be found nowadays in the organisational type of the Social Co-operative, in the variation that, in the Italian legislation, is called of 13 type, whose aims are expressly to develop activity with the intention to insert the disadvantage persons in the work world.

It is a new original form of enterprise that, inside an only activity to develop in every economic sector, (of industry, of agriculture or of services) which includes:

Voluntary partners, that offer their activity without any fee, that are mostly organiser and responsible ones;

Worker partners not disadvantages, that guarantee a least level of efficiency and productiveness, to consent the presence of the enterprise in the market;

Disadvantage partners for who the Co-operative has been constituted;

Share holders (whose presence, like in all the co-operatives, is not essential) that contribute to the capitalisation of the enterprise, according to the law NR. 59 1992.

So this form of co-operative is a social enterprise that, next to the principle of mutuality, typical of every co-operative, and beyond the principles of convenience and exemplary efficiency of the enterprises applies also the principles of the solidarity among strong subjects and weak subjects, and call these last ones to practice their right of citizens using human resources that would remain otherwise wasted.

As a real enterprise but a no-profit at the same the Social Co-operative take advantage from all the numerous financial facilitation in the sector of the

As organisation contemplated to the aim of solidarity and altruism also take advantage from the facilitation approved in Italy both from the Law that instituted the Social Co-operation (L.n "81 1991) and the more recent (Legislative decree 460 1997) that founds the no-profit organisation and of Social utility (O.N.L.LS.) to which the social co-operative of course belongs.

It is important to remember that the law no. 381 encourages the development of the social co-operation of B type consenting, in some cases, the stipulated of conventions with public corporate body, for the supply of good and services, also at conditions that break the discipline in subject of contracts of the public administration, and so without the rigid respect of the rules of impartiality.

The Regional Law of Sardinia no. 16 1997, that applies the 381, foresee measures in form of contribution as incentives investments and management services.

So this form of co-operative is a social enterprise that near to the principles of mutuality, typical of every co-operative, and beyond the principles of less costs and efficiency typical of enterprises, applies the principle of the solidarity among strong and weak subjects and call the last to practice their rights of citizens making real, in economic and entrepreneurial terminus, a human capital that would remain otherwise unemployed.

As a real enterprise without purpose of profit because doesn't contemplate to produce and distribute profit, the Social Co-operative can advantage from the financial providence for investments to the sector of the co-operation. As a real Enterprise devoted to the goal of altruism and solidarity, advantage of the other facilitation inserted in Italy form the Law 381 1991 that constituted the Social Co-operation and the recent (Legislative Decree 460 1997) that constituted the ON.LU.S. to which the social co-operative belongs.

The Law no. 381 promote the development of the social co-operation b Type, allowing in some cases the stipulate of conventions with public administration without the rigid respect of the rules of impartiality.

The regional Law no. 16 1997, applying of that no.381, foresees the helpful measures in form of contribute for finance investments and management services.

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The Social co-operative in the third sector

The social co-operative (B type) represent the most evolution of the so called third sector, that is to say of that experience of our living age (made of no profit associations, voluntary service and co-operative and foundations) than, after the growth of the rights and to the contextual crisis of the Welfare State, induced the citizens to:

Undertake by themselves the realisation of the social starting from the right of employment;

Realise these objectives without the State aid and the public sector support in general;

Overcome the classical rules of the first sector, that of market and capitalistic enterprise applying the principle of solidarity, mutuality and altruism.

The type A Co-operative

The co-operative of B type is not the only way to create solidarity around the weak subjects and to the handicapped but it is certainly the fitter tool for an effective active politics. The Social Co-operative of type A, for example, (founded with the same law 38 /1.991) doesn't involve directly the disadvantaged people: it is almost constituted from persons without handicaps that organised the output of social-sanitation and educational services for the weakest target. In this organisation, that remains of entrepreneurial type and based on the inside mutuality and on the outgoing solidarity, the weak subject remains the object of the action, but doesn't become worker.

The social co-operative of type A, that enjoys the same financial d fiscal facilitation of the type, is the most suitable to favour the creation of main point formative presuppositions having their aim in the future social insertion of the handicapped.

This is the organisational form that could be effectively engaged, for example, from who, according to the objects of this project, would like to became a professionist in the support act for they who suffer eye-pathologies. This form of co-operative in fact works mainly with a convention with corporate body for the carrying out of the social services and from these kind of activities it get the most amount of gains.

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The commercial corporate body

The other organisational forms of the no profit sector different from the social co-operation don’t carry out a real enterprise even if they have some similar characteristics. Some of these in fact, even if keeping finality no profit, make activities that could be defined commercial, as they find a market disposed to pay for their services.

It’s what happened in some associations not recognised, formed on base of the articles no. 16 and following of Civil Code, that with a more functional organisation than the enterprises, ~ the cultural and social purpose and undertake a real economic activity offering commodities and services against compensation but without the intent to realise profits. Under this form we can find activities of different types, cultural, editorial, research, manufacturing of goods, services to the enterprises.

It is possible that the partners of this organism could be disadvantage person together with normal persons and so here comes true form solidarity, the mutuality, like

happens in the co-operative of type, as nothing forbids that the activity made out is at advantage of weak subjects like happens in the Co-operative of type A.

Even if this would be real these associations for the legal form they maintains, doesn't obtain any financial facility and when they perceive a profit for their services they are characterised like commercial associations with prevailing commercial activity, that is to say Enti Commerciali, and so they can't advantage of the tax facilitation that he law reserve to the no profit organisations (D, L. 460/1997).

The Commercial corporate body could be used to develop an active politics of employment in favour of disadvantaged people or to provide services to the handicapped by professionists, but is a "hull" too weak, constrained to maintain characteristics or simplicity and lightness, that must resign to any public resource or special contribute, and the quotas of partners)

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Corporate body and Voluntary Service

These kind of Associations have strong limit in the development of an active politics of insert of weak subjects in the employment work, being more fragile than the precedents, even if their activity is fundamental to encourage the social sensitivity to the problems.

These organisations half provide by themselves to their sustenance and half take advantage from extraordinary facilities even if the law no. 266 1991, that recognise and rules the Voluntary Service associations, take in consideration the choice of convention with corporate body for the development of their social activities. Also these last associative forms can have receipts from economic activities or conventions, but these must sustain secondary respect the whole activity, otherwise they would become commercial corporate body.

So these organism are not strangers to the experiments of insertion in the employment world of the weak subject but this is not their specific vocation.

The traditional Co-operative

The ancient co-operative too, born from the Trade Union together with the Mutual Unions, that preserve his validity as an organisation aimed to create advantages only for its partners and not for public benefits. (Mutual benefit and not public benefit).

This form of association is not sufficient for the working insert of disadvantaged persons; no profit doesn’t correspond to a social utility.

I mean it is not possible that weak persons organise a co-operative when they cannot manage it by themselves.

The social co-operation in the evolution of the organisation and in the finance field of non-profit sector

After the description of the organisational typologies it is easy to understand how every kind of them constitutes in a special way an evolutive sTADium of a long process from the world of the social economy to the sector third in which don’t prevail the rule and the function of the public v private (market), even if in reduced and instrumental form.

In fact, we go from the simple organisation to the evolved one to the articulated one that is the social co-operative.

It is the most advanced in the financiary field because produce incomes like the no profit companies and it is independent from the Public administration (like happens in the convention relationship).

The social co-operation will be the no profit structure most suitable to compete when in the social politics more evolved will be adopted the voucher system.

The dimensions of the co-operation

There is no doubt that the diffusion of the social enterprise in Italy shows the importance of this kind of company able to solve the contradictions of this century:

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