Developing the social economy is not merely a matter of funding. It is also an important means of preserving jobs, supporting the employment of vulnerable people and strengthening rural communities. Csaba Borboly, Vice-President of Harghita County Council, advocates at European level for funding schemes that take into account the specific needs of small communities, mountain regions and local community organisations.<\/p>\n
The European Commission\u2019s Expert Group on Social Economy and Social Enterprises (GECES) supports European policymaking by providing expert advice and recommendations. Its work covers, among other areas, access to finance for social enterprises, the regulatory frameworks in EU Member States and the barriers that hinder the development of the social economy.<\/p>\n
Csaba Borboly participates in the GECES work on access to finance as an observer representing the European Committee of the Regions. One of his main objectives is to ensure that the challenges faced by communities in Harghita County and other rural regions are reflected in European policy discussions.<\/p>\n
Social economy organisations, including associations, foundations, cooperatives and social enterprises, often address needs that conventional businesses and markets do not adequately meet. They create jobs, support the employment of people in vulnerable situations and help maintain essential local services.<\/p>\n
However, their activities are affected by numerous obstacles. Traditional bank financing often requires collateral and financial returns that socially oriented enterprises struggle to provide. Although grants can help organisations get started, they frequently fail to address their financial needs in subsequent years.<\/p>\n
For this reason, one of the key issues examined by GECES in its work on access to finance is how to bridge the gap between non-repayable grants and conventional bank loans. The financial instruments under consideration include microloans, guarantees, pre-financing mechanisms and longer-term financing solutions.<\/p>\n
Csaba Borboly maintains that the effectiveness of financial support cannot be measured solely by the amount of money spent. It is equally important to consider how an investment contributes to maintaining jobs, what services it provides to the community and whether the organisation can remain financially sustainable over time.<\/p>\n
Small organisations operating in rural and mountain communities often have limited financial resources and administrative capacity. A community initiative may address a genuine local need but still be unable to secure funding because it lacks sufficient co-financing, the necessary collateral or specialised staff to manage complex application procedures.<\/p>\n
In Harghita County, developing the social economy could create new opportunities in several areas. It could contribute to job creation in rural communities, encourage young people to remain in their home regions, improve access to services for older people and disadvantaged groups, and support the development of local products and community-based economic initiatives.<\/p>\n
In this context, Csaba Borboly advocates a European approach to financing that does not impose identical conditions on every region. Assessments of access to funding should also consider application costs, co-financing requirements, pre-financing opportunities and the availability of professional assistance.<\/p>\n
The objective is to ensure that a community initiative in a small village in Harghita County is not placed at a disadvantage from the outset simply because it lacks the financial and institutional resources available to an organisation based in a major urban centre.<\/p>\n
Developing the social economy cannot be the responsibility of European or national institutions alone. Local and regional authorities have first-hand knowledge of their communities\u2019 needs. It is therefore essential that they participate not only in implementing decisions that have already been made, but also in designing funding programmes.<\/p>\n
A central element of Csaba Borboly\u2019s policy work is strengthening the role of local authorities as partners. This approach involves including local institutions in programme design, identifying financial barriers and evaluating the results of public support.<\/p>\n
The situation in Romania requires particular attention. In addition to difficulties in accessing finance, social enterprises face challenges related to the tax framework, the limited practical use of opportunities available under public procurement rules, and legal issues surrounding cooperation with local authorities.<\/p>\n
One of the objectives of this policy work is therefore to promote solutions that create more predictable operating conditions, facilitate local partnerships and help social enterprises become less dependent on project-based funding.<\/p>\n
As part of the work related to GECES, an analysis of the challenges facing Romania and a set of policy proposals have been prepared. These address, among other issues, barriers to financing, territorial disparities and the role of local authorities.<\/p>\n
Preparations for dialogue with the Harghita County Employment Agency, as well as non-governmental organisations and social enterprises, serve the same objective. Gathering the experiences of local stakeholders can help identify why certain development initiatives fail to materialise, which financial instruments are needed and which good practices could also be applied at European level.<\/p>\n
Another important proposal concerns more accurate monitoring of the geographical distribution of funding. Such a mechanism would make it possible to assess the extent to which European and national funds actually reach rural, mountain and less-developed regions.<\/p>\n
Improved data collection and the measurement of the social impact of funding could help ensure that future support programmes are better aligned with the real needs of local communities.<\/p>\n
One of the main objectives of Csaba Borboly\u2019s involvement in European policymaking is to ensure that the experiences of communities in Harghita County are not treated solely as local concerns, but can also contribute to recommendations developed at European level.<\/p>\n
Developing the social economy is about more than supporting individual enterprises. It is also about enabling rural communities to create jobs, encourage young people to build their futures at home, provide services for older residents and develop local services that improve quality of life.<\/p>\n
In the coming period, engaging local stakeholders, systematically documenting barriers to financing and developing evidence-based European policy proposals will be particularly important.<\/p>\n
The aim is to promote a European funding system in which an organisation\u2019s size or geographical location is not the only determining factor, but where the value it creates for its community also matters. Rural and mountain regions should not simply be expected to adapt to European development policies. They must also have the opportunity to play an active role in shaping them.<\/p>\n","protected":false},"excerpt":{"rendered":"
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