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MED Develops Draft Law on Social Entrepreneurship

Thursday, 12 January 2017 16:14

RF Ministry of Economic Development submitted the draft law, which proposes legislating the statues of social entrepreneurship, for approval to the FAS, FTS, the Ministry of Finance and the Ministry of Labor, RIA News reports quoting Kommersant daily.

It is noted that after public discussion and further criticism, the previous draft document, which the ministry promulgated last summer, had to be seriously finalized, taking into account deputies’ versions of the draft law, brought in to the State Duma, which received negative reviews of the government.

The updated document, which is at the disposal of the edition, is more accurate in definitions, as, according to the explanatory note, the term «social entrepreneurship» is usually mixed with social services, socially-oriented activity and social sphere”, the newspaper reports. The project proposes referring as social entrepreneurship the companies, at which the disabled, single persons (with children under seven), parents with many children, pensioners, graduates of orphan asylums under 21, persons, released from penitentiaries, work. The total average staffing number of such workers should be not less than 30%, and their share in the payroll budget fund – not less than 25%.

The enterprise, the activities of which help people, who found themselves in difficult situation, may be also referred as social. For example, it improves their living environment in such spheres, as healthcare, physical training and mass sports, preschool education, children’s clubs, social tourism, cultural outreach activities. As the newspaper reports, such entrepreneurship will be considered as social only if the share of income from such activities is not less than 70% in their total amount. The Ministry of Economic Development took these criteria from the state program «Economic Development and Innovational Economy» dated 2014.

In addition, the document defines the principles of provision of public support to social entrepreneurs. The regions are proposed creating support infrastructure, providing accommodation on favorable terms and access to franchise banks and educational programs. The social entrepreneurs will be able to rent state and municipal property without competitions.

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