Evaluation on Promoting Social Enterprise

  • 2012-10-19
  • 277
    Social enterprises are organizations including profit and non-profit associations that employ minority groups like the disabled or the aged, and focus on providing social services such as education and health to minorities.
    The Government has been carrying out policy to support social enterprises by providing personnel expenses, investment, and tax reduction. Thanks to this government policy, social enterprise has increased from 446 to 2,221 over the last 5 years, and it has employed 17,410 people (including minorities 10,640).
    Despite the government's effort, the overall profit structure of social enterprise is getting worse year by year (the ratio of net profit to sales figure has gradually dropped), and over half of the employees are temporary workers (52.7%). It's time for Government to change social enterprise policy in order to improve employment conditions and individual profit structure.
    First, differentiated policies which consider the individual characteristics of social enterprises (Social enterprise is broken down into four categories) are needed. Second, policy has to be diversified because the majority of the policy focuses on assisting personnel expenses.

Seo Giyoung