In the context of high youth unemployment and regional inequalities, social entrepreneurship in Montenegro is an important resource that can provide part of the solution and contribute to economic and social development. To strengthen social entrepreneurship in the country, it is essential to adopt a Law on Social Entrepreneurship, take a strategic approach by decision-makers, provide financial support to build the capacity of new social enterprises, and implement comprehensive annual statistics tracking type of business. These are some of the key points of the study “Social Entrepreneurship: Potential for Improving Socio-Economic Opportunities in Montenegro,” published by the Centre for Civic Education (CCE) within the project “YouthJobLink – Linking Youth and Social Enterprises,” implemented with the support of the European Union through the Directorate for Financing and Contracting of EU Assistance Funds (CFCU) of the Ministry of Finance.
The study provides insight into the current state of social entrepreneurship in Montenegro, as well as reference practices from the European Union. Through the analysis of relevant documents and case studies, key success factors and challenges faced by social enterprises are identified. The focus is also placed on the role of social entrepreneurship in reducing youth unemployment and how promoting this concept, as an attractive career option, can create better socio-economic conditions for young people, and all with the aim to highlight that social entrepreneurship has the potential to be one of the important drivers of economic growth and social development in the country.
“Social entrepreneurship in the EU plays a key role in economic and social life, with around 2.8 million social enterprises employing approximately 13.6 million people, or 6% of the total workforce. In Montenegro, this is a relatively new concept, but it is becoming an increasingly important part of the idea of economic and social development,” noted Valentina Ostojić, the author of the study and a programme associate at the CCE.
She also points out the underdeveloped statistics related to social entrepreneurship in Montenegro and the lack of an official “registry” of such enterprises. However, unofficially, very interesting and socially beneficial initiatives have been mapped across Montenegro, addressing various parts of society, such as Seljak.me, a digital platform that connects farmers and consumers, or Igraj.me, a company that produces educational board games aimed at preserving cultural heritage.
“Social entrepreneurship is not legally regulated as such in Montenegro, which further complicates the process of establishing these types of businesses. This is accompanied by a lack of adequate financial support for newly established social enterprises, although we have examples that demonstrate social entrepreneurship can respond to the needs of local communities while simultaneously creating sustainable business models,” Ostojić added.
Therefore, to advance the development of social entrepreneurship in Montenegro, it is recommended to adopt the Law on Social Entrepreneurship, which would provide a legal framework and clear guidelines for the operation of social enterprises, establish annual statistical monitoring to track and analyze the performance of this sector, and implement financial support mechanisms for young entrepreneurs and newly established social enterprises.
Nikola Đurašević, Programme Associate