Social economy in Latvia: the case of charity shops
2017
Paula, L., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics and Social Development | Grinfelde, A., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics and Social Development
Social economy is a third sector among economies which develops slowly in Latvia. There is still lack of specific corresponding regulations, incomprehension within society and businesses about the core idea and functioning of social enterprises, lack of wider social recognition of this form of economic activity. Thus, the aim of the paper is to analyse experience of charity organization “Otra Elpa”, which is the pioneer of social entrepreneurship in Latvia in terms of managing charity shops. The case study methodology was employed to answer two research questions: what factors influence development of charity shops, and what initiatives and projects have been supported by donations and charity. The data allows concluding that a lack of corresponding normative regulations hinders development of new social enterprises. There is a need for wider communication and explanatory work with businesses, municipalities, policy makers, and wider society. Donations collected in charity shops are used to support social projects in all regions of Latvia which aim to solve social problems at both national and local levels concerning socially vulnerable groups.
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