
Social Economy Structure - Stimulating Economic Development in the rural communities

About this good practice
The aim of this project was to develop five social economy structures and increase the chances of sustainable integration on the labour market in social economy structures of 100 people from 3 regions in Romania.
The projects specific objectives were: promote social economy as a flexible and sustainable tool for economic development and job creation; ensure a better social insertion of people living on guaranteed minimum income and reduce their dependence on social benefits; create a constructive framework for counselling and professional guidance. As partner in the project ADEPT Foundation established a social economy structure aiming to further support the economic and social development of the communities in the Sighișoara-Târnava Mare area, Centru Region.
This economic structure continues the activities of ADEPT to support small producers and, to protect the High Nature Value farmland in Transylvania. The small producers in the area, lacking sales and promotion experience, fail to overcome competitive barriers and often choose to abandon commercial activities that could increase their revenue.
The social economy structure created aims to support both small local producers and fruit pickers in the spontaneous flora. This enterprise is an economic sector on the border between the private sector (business) and the public (governmental) sector and was designed to generate innovative solutions for the social, economic and environmental issues of local community members.
Resources needed
The project benefited from a budget of EUR 182.795, funded by the Operational Program Human Resources Development 2007-2013, Priority Axis 6: Promoting Social Inclusion, Key Area of Intervention: 6.1 Developing the Social Economy.
Evidence of success
Five social economy structures were set up to provide employment opportunities for people on minimum guaranteed earnings enrolled in the vocational training program. One SES has been set up in Centru Region: FRUITS AND VEGETABLES PROCESSING UNIT. The enterprise: has the necessary equipment for collection, storage and processing of fresh and frozen vegetable and fruits, as well as jams and syrups: is a regional collection and distribution center; has 7 full-time employees.
Potential for learning or transfer
The enterprise contributed to local development and social cohesion, with a high potential for generating and maintaining stable employment. This community enterprise also functions as a demonstration centre and can be visited by other entrepreneurs as an example of good practice.
This social enterprise is a good example of how to develop cooperation between private and public in order to support the economic and social development of the communities in rural areas. These communities need policies that support creation of a framework that allow them to better valorise their local agri-food products by engaging in commercial activities.
This project could be an example for communities interested to support the small producers in their areas, which lack sales and promotion experience, in order to increase their revenues.
Identifying an appropriate funding source this practice could be easily transfered in other regions, countries who face same challenges.