Social enterprises in peripherial areas of Hungary

Lipták, Katalin (2022) Social enterprises in peripherial areas of Hungary. In: 6. International European Conference on Interdisciplinary Scientific Research. İksad Publishing House, Bucharest, pp. 958-963. ISBN 9786258213386

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Abstract

The global problem of unemployment and the impact of the COVID-19 epidemic on the labour market are increasingly being addressed at regional and local level. The solidarity economy is also often seen as an alternative to capitalist development, a possible new model for development. The main pillars of the solidarity economy are social enterprises, which can provide solutions to these problems. The aim of this paper is to describe and analyse the functioning of some social enterprises in peripheral areas of Hungary. I describe the types of social enterprises based on their main activities and legal form in Hungary. The disadvantaged peripheral settlements in Hungary face a number of economic and social problems, such as high unemployment, population decline, poverty and low income generating capacity. Enterprises that serve social objectives and pay great attention to social responsibility and the promotion of community interests can help to some extent. The methodology of the paper is to interview social enterprise that provide assistance to local society in small villages. Social enterprise is often the only economic actors providing employment alongside municipalities in smaller settlements. These enterprises have a very limited capacity to create jobs and, due to their non- profit character and limited income, cannot always pay wages, but they try to provide solutions to existing social problems. By exploring the difficulties faced by social enterprises, I aim to raise awareness of the importance of these enterprises for policy.

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