Problem addressed
Croatia lacked a central information body dealing with financial and administrative obligations and opportunities for social enterprises. Social entrepreneurs therefore tended to manage their businesses without adequate knowledge of the relevant legal framework, financial management, planning and controlling. This resulted in poor management, business losses and criminal charges. In addition, Croatia is experiencing a high unemployment rate among young people under 25 years of age: according to the Croatian Employment Service, 43% of young people aged 16-24 are unemployed.
Innovative solution
The Finance, Accounting and Administration (FAIR) NET project aimed to equip social entrepreneurs with essential skills and knowledge to manage the financial and administrative aspects of their businesses. It created an online platform (https://fairnet.hr/) to bring together new and existing social entrepreneurs and experts. The platform allows users to interact with each other and to share knowledge, information, experiences and lessons. Articles are published on relevant topics such as registration, taxation, pension systems etc. for social businesses, and users can also post questions and receive expert responses. FAIR NET also offers training on financial administration for social entrepreneurship. In 2018, 50 unemployed young people received 140 hours of classroom and online training over three months, covering topics such as introduction to social entrepreneurship, human resources, financial administration, project administration, financial planning and reporting. The initiative promotes fair and responsible social business, empowers experienced social entrepreneurs to serve as experts, and connects unemployed people with social entrepreneurs with relevant labour needs. The FAIR NET platform was developed as an ESF-funded project that ran from June 2017 to May 2018. It had a total budget of around EUR 105 000, with 15% of the costs co-financed by national funds.
The project was led by ACT Konto, a non-profit social enterprise specialised in providing book-keeping services, education and consulting on financial operations and management for for-profit and non-profit organisations, as well as social enterprises, cooperatives, craftsmen and small businesses. ACT Konto managed the FAIR NET services, including the website. Three main partners contributed to the project: GONG (https://gong.hr/), ZEF (https://zef.hr/) and Synergy Consulting (https://synergia-consulting.hr/), all social enterprises whose businesses target economic, ecological and social impact. They were responsible for developing the online platform (including the production of video tutorials, infographics, articles, etc.), as well as developing and delivering the training curricula to 50 young unemployed people in Čakovec, Zagreb and Split. The partners also participated in ongoing education on FAIR topics, such as controlling, accounting and management of social enterprises. Clients of FAIR NET include civil society organisations and social businesses promoting the integration of people with disabilities into the labour market and care for the elderly. The FAIR NET is relevant to them as it represents a partner that can answer to all their questions related to administrative and financial management, allowing them to devote more time to developing their product and services and work with marginalised groups, rather than in performing administration and seeking answers to financial questions.
Key results and benefits
FAIR NET project partners distributed an evaluation questionnaire among their employees and young unemployed people. The questionnaire assessed their satisfaction with the services provided, on a scale from 1 to 5. Employees of project partners expressed high satisfaction with the education received and confirmed that they had applied the knowledge in their everyday work. Young unemployed people also expressed satisfaction with the education received, noting that the courses were challenging, intense, and they had learned a lot.
Project results included the development of FAIR NET, with a minimum goal of 50 members, both organisations and individuals, and the creation of a curriculum for education for financial administrators. Before developing the curricula, the project team discussed with the partners what knowledge and skills they lacked in order to manage the company. According to a self-evaluation carried out at the end of the courses, 13 employees of social businesses improved their capacity in business and accounting management. 50 young unemployed people participated in education for financial administration in social businesses, with 30 subsequently obtaining internships in the social business sector. Two participants in the financial administrator training found employment in a social enterprise as a direct result of their new knowledge.
Potential for mainstreaming
The curriculum can be used by all social businesses in Croatia. It is currently being updated and adjusted, with a particular focus on integrating persons with disabilities into the social business labour market. As its content is based on Croatian financial law, it cannot be transferred directly to other Member States; however, the same methodology could be used and adapted accordingly. ESF funding made it possible for ACT Konto to upgrade its services and become recognised as a social enterprise business. FAIR NET is widely known in Croatia and many start-ups ask for help. Without EU funding, the online platform could not have been developed and project partners’ knowledge would have remained within their own organisations rather than shared more widely.
