Development of social enterprises and education & production centers in cooperation with local government


12 april 2018

The social enterprise will create jobs for people who aren’t able to find work themselves.

Non-governmental organization (NGO) initiated the opening of social enterprises and education & production centers in cooperation with local government in Poltava region.

NGO representatives analyzed the demand and supply of the local labor market, created a business plan, approved a business development program based on cooperation with the city authorities and implemented the sale of products.

Having interviewed clients of a non-governmental organization, it was found that most of the specialties they have are technical. After analyzing the local market, the NGO offered a number of ideas for introducing customer education in professions with high demand and further employment.

Based on the collected data, the profitability was calculated and the corresponding business plan was created. As the social enterprise created by a non-governmental organization over time will reduce the financing of the corresponding services with the local budget, they decided to receive communal premises on preferential terms. As the result of negotiations with the authorities, there was the allocation of premises and necessary equipment for a social enterprise.

Setting up markets for products is an important element of social business. If the demand is calculated correctly, the offer will appear automatically. Having established the needs of the city, the NGO has put forward a proposal for readiness to participate in the tender. In this way, the production of a social enterprise has become competitive in the local market.

Budget advocacy school experts noted that social enterprise is a wonderful mechanism that can provide for itself and also successfully invest in the social sphere. But another one point that must be understood is that the creation of a social enterprise requires a clear idea, a lot of human and material resources.

Case implementers: CO “Light of Hope” in Poltava.

 The result: the creation of a social enterprise in Poltava and the winning in the first tender (800 000 UAH).

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