Social Enterprise is an entity which targets at providing job opportunities to people in the lower strata of the society who pursuing social service and at the same time a profit making enterprise. Rather than maximizing the profit for shareholders ...
Social Enterprise is an entity which targets at providing job opportunities to people in the lower strata of the society who pursuing social service and at the same time a profit making enterprise. Rather than maximizing the profit for shareholders and owners, it is aimed at reinvesting the obtained profit on the enterprise itself or the society, In other words, social enterprise is a newly transformed paradigm, from the social organization which depended on donation or government subsidy to a form of profit seeking organization. With Europe as the center, social enterprise has been continuously developed, and a trend of spreading all over the world is shown recently. Many countries are paying close attention to the idea of social enterprise because of the incapability of government in solving the problems arose from long term economic downturn. For instance, the unemployment problem, dispute between different social stratum, regional inequality, aging population and low birth rate due to changing population pattern and family structure. Especially in solving the unemployment problem, rather than leaving it solely to the government, as a member of the society, an active role is needed to be taken by enterprises too. unlimited job opportunities, and special opportunities for the lower strata of society likes the handicapped and old aged people, etc. The solution to this problem is social enterprise.
Social Enterprise does not depend on the subsidy from government and donation. It generates profit from operating activities. Considerable attention has been focused because it is not only aiming for profit, but also solving the unemployment problem and other social issues. Many countries are setting up policies and laws to promote social enterprise.
In Korea, in 2007 'Social Enterprises Promotion Act' was enacted, attention on social enterprise arouse. Up to December 2014, 2712 social enterprises were established, including authorized social enterprises and preliminary social enterprises run by local autonomous entities. With such rapid development of social enterprise, the 'Social Enterprise Promotion Act' was well implemented. After that, in July 2008, in order to improve the management capability of social enterprise, a joint agreement was concluded between Government-Enterprise-Private Organization. In August 2010 'Regional Preliminary Social Enterprise' was formed with the aim of developing regional society by the mean of providing job opportunities to lower strata of society. In December 2012 section amendment on 'District Society Contribution' of the 'Social Enterprise Promotion Act' was established. In June 2011 'Social Enterprise Invigoration Plan' was presented. In 2012, in order to prepare 'The Realization of Warm Community by Expansion of Social Enterprise', the 2nd Social Enterprise Promotion Basic Plan (2013-2017) was arranged. This is to improve the sustainability and improve the worthiness of the social enterprise. With the aim of reaching the target of forming 3000 social enterprises, a project which focuses on 4 different categories with 61 detailed policies was presented. Recently the Ministry of Employment and Labor has been boosting the growth of society enterprise which has internal stability, based on evaluating the enterprise's autonomy level. It presented 'Social Enterprise Revitalization Plan' which focuses on 4 areas. First, changing regulations so that a variety of Social Enterprises can be set up. Second, to enhance the autonomy of Social Enterprise by reforming supporting system. Third, to ensure the supporting policy is delivered effectively on-the-spot by promoting the effectiveness and professionality of the delivery system. Fourth, to enhance the transparency and responsibility management of Social Enterprise using the basis of strengthening management monitoring and result evaluation.
Accordingly with the establishment of 'Social Enterprise Promotion Act', the scope of social enterprise was expanded, social problems are solved e.g. job opportunities are provided. Since 2010 in order to enhance the development of social enterprise, government has emphasized on the role of local autonomous entity. In 2010 'Social Enterprise Promotion Act' and related policies were established to encourage a number of local autonomous entities to actively involve in the development and promotion of policies related to the social enterprise. Concluded from the paper reviewed, firstly, apart from reviving local economy, it is recommended to examine the existing social enterprise, then base on the information obtained, review the problems of the current laws, In order to promote the development of social enterprise, revision of the laws accordingly.