Microlearning Module 2 - Legal, legislative and financial framework
Topic outline
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Social enterprises (in all their possible legal forms) are embedded in specific legal and financial frameworks. This module provides information on the following three areas. First, it presents an overview of different legislative contexts in which SEs operate, how they enable SEs, and what these contexts mean for SEs’ rights and obligations.
Secondly, this module explores the benefits of socially responsible public procurement, particularly emphasising how such practices can support Local Public Authorities (LPAs) in achieving their social, economic, and environmental policy goals. It also presents the main public procurement instruments through which socially responsible practices can be effectively implemented.
Thirdly, this module will provide information about traditional and new financing options for social enterprises, both at the national and EU levels. At the end of this module, participants will have an in-depth knowledge of the legal context and financial landscapes in which social enterprises operate. This will enable participants to adapt programmes and policies to the needs of social enterprises, thereby supporting their mission to address societal and environmental challenges.
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This unit presents the concept of social enterprises—organizations that pursue social or environmental missions while generating income through trade. Unlike traditional for-profit companies or donation-based nonprofits, social enterprises balance profit with purpose. The microunit explains how legal frameworks in some countries support these hybrid models through dedicated legal forms or specific criteria. It also outlines core legal features such as mission focus, financial sustainability, and limited profit distribution. Finally, it highlights the important role of local public authorities in enabling social enterprises through supportive policies, targeted subsidies, and inclusive public procurement systems.
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This unit explores the role of social enterprises in public procurement, highlighting how public authorities can integrate social and environmental considerations into purchasing processes. Participants will learn about the EU’s legal procurement framework, socially responsible public procurement (SRPP) principles, and how both, the social enterprises same as the LPAs, can benefit from reserved contracts, lot purchasing, social clauses, and the best-price-quality ratio (BPQR). The training provides insights on how local public authorities can collaborate with social enterprises to promote sustainability, job creation, and social inclusion while ensuring high-quality public services.
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Access to financial support is crucial for social enterprises to thrive, scale their impact, and contribute to a more inclusive economy. The unit covers traditional (philanthropic donations, government grants, public subsidies, commercial investments, self-financing) and new forms of financing (crowdfunding, quasi-equity, impact investing, SIBs) for social enterprises. The importance of measuring social impact for raising capital is emphasized. The EU financial framework and its support via the European Investment Fund (EIF) through loans, guarantees and equity are also briefly presented.
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