A Memorandum of Understanding on implementation of effective programs aimed at the development of social entrepreneurship in Armenia for the sustainable development of communities has been signed today between the Ministry of Territorial Administration and Infrastructure of Armenia and the Association of Social Enterprises of Armenia. The memorandum was signed by Deputy Minister Mr. Vache Terteryan on behalf of the Ministry of Territorial Administration and Infrastructure of Armenia and on behalf of the Association of Social Enterprises of Armenia, Association by its President Ms Satik Badeyan.
The memorandum was signed within the framework of the “Social Entrepreneurship as a Community Development Mechanism” sub-grant project implemented by the Association of Social Enterprises of Armenia (ASEA). The “Social Entrepreneurship as a Community Development Mechanism” project is implemented within the framework of the sub-grant provided in the scope of the EU funded “Commitment to Constructive Dialogue” project, which is implemented by the Consortium led by the Armenian lawyers’ Association.
The objective of the project is to contribute to the formation of the LSG – SE partner model and the creation of mechanisms for providing of grants from community budgets to create and develop SEs for the solution of community problems by LSGs.
The project was designed to support individuals and NGOs with a focus on community development and existing social issues, creating social entrepreneurship in the community.
Social Entrepreneurship is a business enterprise with the business model based on the solution of social issues and the creation of social values, and most of its profits serve for the implementation of social reform and solution of social issues.
This is also an effective tool for the local self-government. The project proposed that local governments instead of directing their community budget to solving social issues, should support the small businesses to implement their ideas and initiatives through small grants, which will further will be able to solve the problem themselves and in addition to develop their community. Social entrepreneurship in the long term is far more effective for all actors for the solution of many problems. It also promotes community involvement in participatory approach: the residents themselves think of ways to resolve, use community resources and share responsibility for the solution of these problems and community development with the state.
Many international organizations that evaluate the effectiveness of the SE have recently made significant investments to establish new business ventures or to develop their own businesses. Due to the cooperation of the Armenian Social Enterprises Association and the Ministry of Territorial Administration and Infrastructure, the state’s role in this field comes to completely new value.
As a result of the competition, two local self-government bodies were selected from 12 applicants, which expressed willingness to provide financial support from the community budget for the implementation of the social entrepreneurship initiative in their community. In fact, for the first time in Armenia the state officially invests in social entrepreneurship. Community authorities provide financial support to social entrepreneurship and the Armenian Social Enterprises Association provides methodological support to both the local self-governing bodies and the SE initiative groups.
The ideas presented by the village of Lchashen and the Bagavan district of Ashtarak city were recognized as the winners of the competition. The developers are convinced that this can be a sample format that will enable this mechanism to be disseminated after testing, in other communities as well.
