Romania's workforce could increase by 100,000 in the next five years if businesses in the social economy sector got appropriate funding instruments to help them develop, according to estimates by the Social Finance Association (SFA).
According to SFA, social economy businesses have about 100,000 employees, many of them being disadvantaged, vulnerable or disabled people.
nerable or disabled people), and the biggest obstacle in the development of these companies is the lack of access to funding," said the specialists having attended the event 'Possible Mission: How to remove financing barriers to support the financial inclusion of social entrepreneurs'", organised by the Social Finance Association (SFA), Alternative Financing (AFIN) and ADV Romania Foundation.
Social economy is said to have a huge potential in Romania, where it can simultaneously meet the needs for social inclusion, employment and sustainable development of communities. In other countries of the European Union, the social economy represents almost 7% of the workforce and contributes about 8% to the formation of GDP.
"If 5,000 social businesses were established every year - a feasible objective, taking into account that in Romania about 50,000 micro-enterprises are established annually - and each one employed three-four people, in five years' time we could reach over 100,000 new jobs. It is a realistic projection, but it requires political will, financial support and collaboration between public and private actors,"Bogdan Merfea, chairman, Social Finance Association and founder of AFIN IFN, is quoted as saying in a press statement.
In her turn, Angela Achitei, chair of the ADV Romania group and founder of AFIN IFN, said that social economy is the missing link between poverty policies, the labour market and the green transition.
"An ambitious - but realistic - vision can double the sector's contribution to employment in the coming years; it can offer concrete solutions to vulnerable groups, young people who neither working nor learning (NEETs). With the right funding instruments, political will and public-private partnership, by 2030, the social economy will become the main engine for inclusive jobs, quality community services and green transition, doubling its economic footprint and reducing social exclusion in the most vulnerable communities," said Achitei.
In Romania, the potential of the sector is still insufficiently exploited, despite increasingly obvious social needs and a growing interest in sustainable business models, according to specialists.
The event brought together over 25 top speakers concerned with social business development, representatives of banks, investment funds and international financial institutions, both from Romania and elsewhere from the European Union.
They shared their experiences from Italy, France, Central and Eastern Europe, but also from Romania and brought up the concept of ethical banking for the first time in Romania. The conference dedicated to the promotion of alternative financial instruments for encouraging social entrepreneurship is organized once every two years by the representatives of the SFA - AFIN - ADV system.
AFIN is the first non-banking financial institution (NBFI) in Romania running on Romanian capital that offers alternative financial solutions to the social economy sector. It aims to facilitate access to funding for business operators with a social impact in Romania that are past the start-up stage and in need of capital resources to develop.
"By helping them develop, these enterprises become true social engines generating jobs, integrating disadvantaged people, increasing their income and that of their communities and, thus, contributing to an inclusive and equitable society," according to organisers.
SFA (Social Finance Association) was set up to round up the financial pillar of AFIN with specialised assistance and know-how in the field of social finance. The association aims to support local entrepreneurs overcome financial barriers through financial education and consultancy for easier access to funding.
ADV Romania is a group of social enterprises connected to each other: ADV Romania Foundation, UtilDeco SRL, WISE.travel SRL, JobDirect SRL, OPYA, SFA and AFIN IFN SA, developed in time since 2002. Its mission is to promote and develop the social economy and secure the inclusion of people with disabilities and other vulnerable groups.
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