Social business challenges in Lithuania

Socialinio verslo poveikis ekonomikai, darnaus vystymosi tikslų įgyvendinimui, regiono vystymuisi – pastaruoju metu tiek pasaulio, tiek ir Lietuvos tyrėjų bei praktikų darbuose moksliniame ir praktiniame kontekstuose dažnai analizuojama tematika. Socialinis verslas dar gana naujas darinys verslo, verslininkystės istorijoje. Šiame straipsnyje aptariami teoriniai socialinio verslo konstruktai, analizuojami teisiniai jo reguliavimo Lietuvoje klausimai. Pristatomi atlikto kokybinio tyrimo, taikant iš dalies struktūruoto interviu metodą, rezultatai. Atliekant tyrimą apklausti socialinio verslo Lietuvoje atstovai, kurie nurodė esmines problemas ir iššūkius, kurių kyla socialiniam verslui. Pagrindiniai iššūkiai – socialinių verslų teisinis statusas, finansinių išteklių, būtinų socialinio verslo plėtrai, stoka, menkas socialinio verslo žinomumas visuomenėje, žinių ir kompetencijų stoka plėtojant socialinį verslą. PAGRINDINIAI ŽODŽIAI: socialinis verslas, socialinio verslo iššūkiai, socialinis verslininkas (antrepreneris).The impact of social business on the economy, the implementation of the goals of sustainable development, and the development of the region have recently been analysed in scientific and practical contexts through the work of both foreign and Lithuanian researchers and practitioners. Social business is still a fairly new derivative in the history of business and entrepreneurship. This article discusses the theoretical constructs of the perception of social business, and analyses legal issues around the regulation of social business in Lithuania. The results of a qualitative study using the semi-structured interview method are also presented. During the research, people involved in developing social business in Lithuania were interviewed, and indicated the main problems and challenges faced by social businesses. The main challenges are the legal status of social businesses, the lack of financial resources necessary for the development of social business, the low awareness of social business in society, and the lack of knowledge and competencies in the development of social business. Object of the research: challenges of social business, problems in Lithuania according to the evaluation of representatives of social businesses. The aim of the research: to identify the main problem areas in the development of social business that representatives of social business in Lithuanian face. Research tasks: 1. To conceptualise the concept of social business at a theoretical level. 2. To analyse the situation of social business in Lithuania. 3. To study empirically the challenges and problems of social businesses in Lithuania. Research methods: analysis of scientific literature, synthesis, generalisation. Analysis of legal acts. Qualitative research using the semi-structured interview method. Qualitative content analysis to discuss the results of the empirical research. Main findings: in analysing the concept and concept of social business, it can be seen that although social business and social entrepreneurship are receiving a lot of attention from researchers, practitioners and social policy makers, it should be emphasised that social business does not have a common definition. It is important for the business to focus on solving a social problem through the implementation of business practices. Thus, the mission of social business must also maintain its social essence. A social business must earn at least half its profits and income as a business unit, so although it should have a social mission, it should still have sufficient business potential to carry out activities typical of a traditional business. Consequently, a social business must, in principle, have a business development model that combines elements of traditional business and socially oriented activities. Although more than 13.6 million people are employed in social enterprises in the European Union alone, these businesses need clear legal regulation and financial support, giving them adequate access to public procurement and additional funding. These opportunities begin with a clear description of social business in the country, an estimation of the social and economic value created by the business, and clarity and transparency of the social business model. Lithuania does not yet have a legal mechanism for regulating social businesses, although a proposal has been received from the European Commission for an action plan on how to properly develop social business-friendly political and social systems, starting with the adoption of the necessary laws and all the necessary social business support infrastructure. An empirical study has revealed that representatives of social businesses in Lithuania consider the gaps in the legal regulatory system to be the main challenges. There are also problems with financial support and the financial sustainability of social business, which can also affect the results of social business. Although representatives of social businesses in Lithuania envisage the activity of creating and establishing social businesses in Lithuania, they still view it with caution, seeing certain negative tendencies, which are again related to the lack of legal regulation. Social support is very important for social businesses. Nevertheless, the authors of this work believe that the development of social business would be greatly influenced by frequently consulting social entrepreneurs and entrepreneurs on issues of strategic business management. KEY WORDS: social business, social business challenges, social entrepreneur