Social enterprise and their eco-system: A European mapping report of Hungary

This report is part of the study “Social enterprises and their ecosystems in Europe” and it provides an overview of the social enterprise landscape in Hungary based on available information as of February 2019.

The concept and phenomenon of social enterprise and social entrepreneurship are quite new in Hungary. Their emergence and initial examples connect to the influence of international non-governmental organisations and foundations (Ashoka and NESsT). However, before these development and support organisations appeared in Hungary, certain existing traditions had already provided roots for social enterprises. These traditions include civil society and the non-profit sector (philanthropic, voluntary and associative tradition); cooperatives, especially social cooperatives (cooperative tradition); socially oriented, responsible conventional enterprises (business background); and church-based economic initiatives (philanthropic tradition of churches). Additionally, this report emphasises the role of the state in supporting the development of social enterprises (public policy driver) in two ways. First, the national state and the European Union (EU) have shaped the field through public funding programmes, which–via the national budget or EU co-financed grant schemes–have supported social economy initiatives and most recently social enterprises per se. Second, public entities, such as local governments themselves have been involved in setting up social enterprises. Aside these roots, the founders of social enterprises today are often already familiar with the concept, and intend to establish social enterprises specifically…