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1 Baltic Journal of European Studies

1 2014

1 Plotnieks D.

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Mechanisms Fostering Social Entrepreneurship as Potential Instruments for Economic Development: The Eastern Partnership Perspective

100%

Plotnieks D.

nr 2

34-49

With its plan to assign 600 million euros through the European Neighbourhood Instrument for Eastern Partnership countries, the European Union intended to increase the efficiency of institutions, attenuate social problems, and create an environment that fosters economic growth and human well-being in Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine. A few scholars have criticized the amount of funding and planned initiatives of the European Neighbourhood Instrument as insufficient and suggested that in order to foster cooperation and support reforms in its Eastern Partnership countries, more action should be taken. In times when European Commission budget is under constraints of consolidation and increase of aid for supporting European Neighbourhood countries is hardly possible, alternative solutions for tempering social problems need to be assessed. Various scientists, philanthropists and entrepreneurs see social entrepreneurship as a tool for solving social problems in a sustainable way where business thinking is being combined with non-profit philosophy. Contrary to government support and intervention for solving social problems, social entrepreneurship is already being used as tool that initially addresses joint needs--solve social problems and create revenue that provides much needed income for sustainable business initiatives. This paper analyzes the concept of social entrepreneurship, examples where social entrepreneurship is solving social problems, and mechanisms that can foster these phenomena. The aim of this paper is to examine different mechanisms of how governments can foster the creation and development of social entrepreneurship. Unique survey data derived from a project examining social entrepreneurship in Europe is used. It is concluded that by adopting mechanisms proven in various developed countries, the Eastern Partnership countries can stimulate social entrepreneurship, thus attenuating social problems and creating environment that fosters economic growth and the wellbeing of people