Family businesses will finally have support in the law
The Slovak Parliament passed an amendment to the law from the Ministry of Labour, Social Affairs and Family, which brings good news for the field of social entrepreneurship. As stated by the department, the amendment meets the requirements, improves the conditions for business and at the same time the introduction of family businesses, which emphasize the preservation of family ties, values and traditions.
The law enters into force on January 1, 2023.
The Ministry worked on the amendment together with experts on social economy and social entrepreneurship. It was also based on its previous practical experience.
As for the social development of business, it focuses mainly on progress “productive, distributive and consumer activities that are organized independently of state authorities and whose main goal is to bring social, it is written in the opinion.
Family businesses
The amendment has a positive social risk even for disadvantaged, vulnerable people in the vicinity and exclusion. It reflects the requirements aimed at development towards this risk.
At the same time, a definition of family businesses that focus on strengthening family values will be introduced. It means that a family business can, in addition to carrying out business activities, also have the goal of generating profit and a higher purpose. I mean the Department of Labor “development of family environment and quality of family life”.
“For the first time, Slovakia has a family business enshrined in legislation. This approved law on the social economy will allow us to use domestic companies, small and medium-sized entrepreneurs, in accordance with EU rules. Just as we defined social businesses in the law, we also defined family businesses and we can, on a voluntary basis, those for whom business is not only for the purpose of profit, but also a matter of the heart, so that we can legally help other family members as well.” added Milan Krajniak, Minister of Labour, Social Affairs and Family of the Slovak Republic.
Social needs
Social enterprises are not primarily focused on making a profit. According to the department, their main interest is solving various social needs of general interest. They may not be interesting for the ordinary business sector. Thanks to the amendment from the workshop of the Ministry of Labour, Social Affairs and Family, they will not go unnoticed.
Social needs can be understood mainly as beneficial services such as health care, social assistance, education and upbringing or environmental protection.
The exceptionality of social enterprises also lies in the fact that they employ disadvantaged and vulnerable persons for whom employment on the labor market is problematic. It also plays an important role in saving public funds in the procurement of goods and services for regional operations and facilities.
Several forms can be found among social enterprises in Slovakia. One of the most common are social enterprises established by the municipality known as municipal social enterprises. Out of a total of approximately 530 registered social enterprises in Slovakia, there are currently more than 100 of them.
It also supports the sustainability of social enterprises and responsible business online catalog of goods and services of registered social enterprises, prepared by the Implementation Agency of the Ministry of Labour, Social Affairs and Family of the Slovak Republic.
You can also find details of the draft law on the Slovak page National Council.
Sources: Ministry of Labour, Social Affairs and Family of the Slovak Republic, NRSR