Social entrepreneurship can offer successful business models, NGO

Nongovernmental organizations say the social entrepreneurship in Moldova is only at the incipient stage of development. In order to improve this mechanism, the legislation should be amended so that it promotes and supports this area. In a roundtable meeting, Sergiu Neicovcen, the head of the National Assistance and Information Center for NGOs in Moldova “Contact”, said the social entrepreneurship can be an extremely efficient mechanism for improving the living conditions of the disadvantaged groups. It can offer innovatory business models that may solve the social problems encountered by the people. Sergiu Neicovcen also said the developed countries have separate laws on social entrepreneurship, while Moldova has only the law on entrepreneurship. “We need a law whereby the Government would provide tax concessions and advantageous loans and lease out rooms for social entrepreneurship,” he stated. The head of the Academy for Educational Development Morana Smodlaka Krajnovic said the barriers that hinder this sector from developing derive from the fiscal and legislative framework. “The NGOs must be encouraged,” she stressed. UNDP Moldova project manager Viorel Albu spoke about the skepticism towards the social entrepreneurship, the absence of financial resources and necessary abilities, the imperfect legislation. “This area in Moldova can be developed by implementing a broad promotion program and adjusting the legislation,” he said. Nine social companies work in Moldova at present - in Edinet, Soroca, Ungheni, Calarasi, Hancesti, and Chisinau.