Research Reports
Fostering Social Enterprises for Rural Vitalization and Job Creation
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AuthorLee, Gyucheon
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Publication Date2011.11.30
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Original
This is the second year report of the two-year collaborative research entitled 'A study on alternatives promoting social enterprises for re-vitalizing rural areas and creating jobs in rural areas. This study consists of four sub-research subjects.
Government has implemented various policies for promoting vitalization of rural areas. However, rural areas have collapsed due to the decrease of population, economic status, and the deficit of fundamental social services. Big businesses, which got benefit from opening market, cling to the pursuit of their profit maximization and close eyes on social responsibility. Recently, several departments of government are implementing various community development policies.
Interests about the social enterprise as a third alternative have been escalated for making structural retardation of rural areas, community vitalization, and the increase of people's quality of life better. In particular, social enterprise promotion policy of the Ministry of Employment and Labor(MOEL) focused on job creation added "the type of community contribution" to it's policy purposes. According to this addition, social enterprises will contribute to the development of rural communities. However, similar policies have been propelled by several Ministries such as the promotion of village corporation, community business, and farming and fishing community corporation resulted in the problems of efficiency, complexity, and moral hazard of latent policy beneficiaries.
The purposes of this study are to depict the problems of the promotion policy of social enterprise, to find out policy amendment directions, and to suggest alternatives promoting social enterprises in rural areas.
We tried to establish typology of social enterprises based on theoretical base and to find out proper support alternatives based on various rural social enterprises. We also tried to suggest a proper intermediary support organization for rural social enterprises. In addition, we tried to set up business models for rural social enterprises based on business items.
We found out several problems which are needed to be amended in order to promote social enterprise in rural areas. Included are as follows: MOEL's monopolistic certification system, inefficiency resulted from overlapping similar policies, ignorance of social economic conditions, the shortage of the diversity of supports, the ignorance of spacial distribution, the unsystematic intermediary support organizations, diffused implementation system, and the lower policy capacity of local governments.
We suggested several alternatives to amend the policy system. Included are fostering project localization, applying different and various policy approaches to rural social enterprises, admitting general use of the name of 'social enterprise', preparing the second stage support system, differentiating supports from the business types and locations of social enterprises, depicting more social purposes, strengthening security and function of intermediary organizations and the establishment of their legal foundation, and establishing independent institution for social enterprise, and so on.
We also develop some alternatives for developing social enterprises in rural areas. Included are as follows: national and regional networking and connecting regional resources, affirmative market for social enterprises, establishment of special investment funds for rural social enterprises, the expansion of partnership between general businesses and social enterprises, the establishment of advertising system, and the establishment of supporting system for education, consulting, and technology development. These alternatives are focused on the development of social enterprises in rural areas.
Researchers: Gyu-Cheon Lee, Nae-Won Oh, Sang-Jin Ma, Kwang-Sun Kim, Chang-Ho Kim
Research Period: 2011.1~2011.10
e-mail address: gclee@krei.re.kr
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