legal frameworks: do they make access to finance and market easier?
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Post on 13-Apr-2017
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Section x:Luke FletcherChair, ESELA
18 February 2016
Mapping Study on Social Enterprise
Social Business Initiative (SBI):
■ SBI launched in 2011
■ Mapping study commissioned in April 2013
■ Mapping study published in November 2014
■ Legal summary published by ESELA in October 2015
Legal Forms and Legal Statuses
Foundations Associations Co-operatives Companies
Legal status applies to one or more legal forms
Common Barriers to Accessing Markets
■ Restrictions on: types of social purposesability to carry out trading activityability to establish trading subsidiariesability of directors to receive compensationability to compete in the market
Common Barriers to Accessing Finance
■ Restrictions on: interest rates payable amount of debt permittedsecuring property or assets issuing debt securitiesnon-member investment or returnscommunicating with investorsnon-liquid investments
Policy Principles
■ Broad-based social enterprise economySupport entrepreneur choiceFocus on adapting legal forms
■ Legal form agnosticismRespect traditional social economyOpenness to new models and methods
■ Legal aspects of policy development
■ Evaluation and assessment
Ecosystem Design
■ Guidance for entrepreneurs on adapting legal forms
■ Develop model social enterprise constitutions
■ Support development of social enterprise legal formsCo-operatives with a social purposeNot for profit social enterprisesShare companies in which social purpose is primary
■ Support development of social enterprise legal statuses Build on underlying legal forms
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Please visit www.esela.eu and contact us at [email protected] to stay informed