Problem addressed

People with disabilities often feel isolated and excluded from society, with working opportunities often scarce and unsustainable.  Since the country’s independence in 1990, the Lithuanian government has made significant efforts to improve employment opportunities and social inclusion for people with disabilities. However, these issues are still present in Lithuania. Data from 2018 shows that approximately 8% of the Lithuanian population are classified as disabled, and most are outside the labour market. The proportion of people with a disability at risk of poverty or social exclusion in Lithuania is at 43%, the third highest rate in the EU (compared to an EU average of 28.7%).

Innovative solution

Regseda is a social enterprise in Lithuania that has recognised the long-term problem of social inclusion and employment of people with disabilities in the country, and has been employing people with various disabilities, and specifically visual impairments, since 1959. Regseda began as a factory producing cardboard and packaging materials in Klaipėda, Lithuania, employing mainly blind workers. Since then, it has become one of the largest social enterprises in the country. Regseda employs and trains people with visual, auditory, nervous system, behavioural and movement disorders to assemble and manufacture products for the factory. Workers are encouraged to help each other to increase efficiency. Hearing impaired people might verify the work carried out by visually impaired people, for example,.

The innovation of Regseda is that it empowers this vulnerable group beyond training alone. Alongside the workers, the management and Board of Directors are also people with disabilities, including those with visual impairments. The board is composed of members of the Lithuanian Union of the Blind and Visually Impaired. This Union has been the only shareholder of the company since it became a limited liability company after Lithuania’s independence (1990).

Regseda does not only employ people with disabilities – it also provides a space for the Union to organise activities for members. These can be cultural or leisure activities or social services, some of which are financed by the enterprise itself. Regseda also focuses on children and young people, aiming to change their self-perception from people with disabilities to self-sustaining, socially active and empowered citizens. It runs a summer camp for blind and visually impaired children, many of whom grow up to become employees.

Although the social enterprise has been at risk of bankruptcy in the past, changes in management and the products manufactured have helped the company to grow considerably in recent years. Even though social enterprises of this kind may face obstacles due to negative public perception, Regseda’s focus on making products of quality, and its partnership with national authorities, has allowed it to overcome this stigma and build a strong reputation.

Key results and benefits

Between 2009 and 2018, Regseda tripled its number of employees, and today it employs 196 people. 155 of these are people with disabilities, 84 of which have a visual impairment. Regseda creates 2-3 new jobs every year. The company is now the supplier of goods for the largest furniture producers in the country and internationally, supplying companies such as IKEA, as well as smaller producers from Lithuania, Sweden, and Germany.

In financial terms, in 2016, the company generated a turnover of EUR 3.2 million. The growth of the company has enabled the purchase of new equipment and machinery, renovations in the working environment, investments in new product lines, and the employment of more people with disabilities and visual impairments. 100% of profits are reinvested in the main aim of the enterprise: the social integration of people with disabilities.

Potential for mainstreaming

Regseda is not just a social enterprise – it is a very well-established community of people with disabilities who support and empower each other. The community has been active since 1959, and is growing rapidly, employing an increasing number of people every year. Even though the limited liability status of the company does not allow it to receive donations or charity, its successful business model, the subsidies and grants awarded to the project and  the reliable and strong community it has created have produced successful results that have proven to be sustainable. Regseda has a contract with the National Labour Exchange, which provides the enterprise with state subsidies that partially cover wages and assistance services.

The model could be transferable to other cities or countries with similar needs for the social integration and employment of people with disabilities. However, in the case of Regseda, the community was established many decades ago, and also benefits from a tax exemption on the 2.7 hectares of land upon which the factory stands. A similar social enterprise elsewhere would potentially need to adapt to stricter financial conditions and require further support from local government or EU funding in order to establish itself and scale-up to the same extent.