With just 3 million inhabitants, Lithuania is a little known Baltic State that leads in social entrepreneurship. This is due to historic policies, strong institutions and a STEM-driven population, all of which encourages innovation. As early as 1996, Lithuania expressed support for youth entrepreneurship when the Parliament launched its “State Youth Policy Conception”, which provided legal precedent to develop policies to support youth. Moreover, in 2004, Lithuania was one of the first new EU member states that adopted an official Law on Social Enterprises. Later in 2015, Lithuania’s Ministry of Economy launched the degree on the adoption of the “Conception of Social Business”. All of these measures are examples that demonstrate Lithuania’s stronghold as a social entrepreneurship and enterprise hub.
Beyond integrated policy, one of the key reasons for Lithuania’s success is its technical talent. A common characteristic of many pre/post-Soviet states is that their populations tend to be more educated in technical skills like STEM over other states. As per ArcticStartup, “The backbone of Lithuanian startup scene is technical talent and willingness to experiment. Like in many Eastern European countries you will find talented tech talent due to a strong education system and white-hat hacker culture. While schools and universities prepared people with good math and science backgrounds, illegal file sharing platforms and self-made LANs became the first playgrounds for many early hackers, who currently run their own startups.”
As a bit of helpful background, Lithuania started to develop into a regionally (then internationally) recognized entrepreneurial hub in 2007. This time period can be considered the golden era in Lithuania for dotcom entrepreneurs, when the startup environment began to take root. At first, the startup movement was constrained to small local hubs within lithuania. It was more choppy than it was centralized, as a result of one-off initiatives. However, just a few years later in 2011, Lithuania’s startup scene came together into a strong movement with the launch of the StartupHighway Accelerator, the first significant hackathon of the nation. Other programs that launched include App Camp Vilnius, Login and Startup Weekend Lithuania. At the same time that these movements and hackathons were occuring, the market was mature enough to adopt new IT solutions. This meant that old-school IT firms began irrelevant, as market pressures demanded innovation. The result was a boost in VC investments into experimental and adventurous entrepreneurs who were ready to tackle the demand crisis and create new IT solutions. And just like that, the startup scene began to blossom in Lithuania, and has done so ever since.
One example of a famous Lithuanian social-centric startup is Vinted, a p2p “pre-loved” second-hand fashion marketplace founded in 2009. Initially the product was dedicated only for the Lithuanian market. A few years later they raised a significant $6.5M series A from Accel partners and unified their brand under the Vinted name. However, the operations and development stayed in Vilnius even after raising further $27M series B in 2014 from Insight Venture Partners.
To Conclude:
Lithuania has proven its place on the map as a Baltic State that is leading in social entrepreneurship. By focusing on STEM and encouraging new solutions, Lithuania is the perfect example of a nation that is forging its own path in social innovation.
Original Source: https://www.the-angelica-factor.com/post/how-lithuania-transformed-into-a-social-entrepreneurship-hub
This publication has been prepared within SENBS project No. 2020- 1-EE01-KA204-077999. The content of this publication is the sole responsibility of the project coordinator and may not always reflect the views of the European Commission or the National Agency.
“Since 2012, IKEA has been collaborating with social businesses – pioneers with the ambition to create business that is ethical in all dimensions. This is the story of business done differently, which aims to create 95,000 jobs that positively impact 500,000 lives. And that’s just the beginning.
IKEA social entrepreneurship is a program that started with the vision of honouring unique skills and competences and gives them a global platform to stand on – resulting in better lives for those who need it most. This has been accomplished by partnering with enterprises that produce products and services that in turn empower people who struggle to provide for themselves and their loved ones. The result is financial independence and life-changing opportunities for families and communities; with improved health care, education and gender empowerment.
IKEA has high standards for all suppliers through something called IWAY. IWAY sets social and environmental requirements for all IKEA suppliers; making sure that people are well treated, resources are protected, and workspaces are healthy and safe. A social business meets these standards, but chooses to go beyond IWAY to reach people furthest from the job market.
Focus areas
Inclusion
Supporting social entrepreneurs who strive to improve the terms on which individuals and groups take part in society. This involves providing jobs, incomes, capabilities and tools to those who are vulnerable and marginalised irrespective of their individual or group characteristics.
Equality
Working with social entrepreneurs who look to make society more equal in terms of income, status, rights and opportunity. This involves supporting individuals or groups, but also changing systems, with a view to allow people to earn a decent and sustainable living.
Livelihood
Ultimately aiming to lift people out of poverty by having the opportunity to earn a decent living. With increased inclusion and equality comes a better chance of a dignified life, where people have the possibility to provide for themselves and their families in a sustainable way.
Partnerships that inspires change
Through real business
Partnering with social entrepreneurs at a business level, IKEA designs and produces products and services that are sold and offered at IKEA stores worldwide. It is a win-win situation with high quality products manufactured and vulnerable peoples lives changed through the jobs created.
IKEA co-worker engagement
What’s really unique about IKEA is how it uses colleagues as a resource. Their involvement ranges from operational support for social entrepreneurs who make products for IKEA, to strategic development for the ones that don’t provide products or services for IKEA. At the same time, it gives IKEA the opportunity to learn how to become more circular, sustainable and entrepreneurial in the business. It’s a relationship built on knowledge sharing, a mutual exchange of competences and inspiration.
Financial support to the partners
Since the characteristics and needs of each social entrepreneur are different, IKEA will customize its financial support. This will be a choice between grants – without the demand for repayment or financial return -, loans and equity investments.”
Read more here: https://ikea.today/social-entrepreneurship/
Source: https://www.ikeasocialentrepreneurship.org/en