The story through the look of Counterpart International Bulgaria
SOCIAL ENTERPRISE OF THE SAMARITANS ASSOCIATION – TO BE OR NOT TO BE!

This is the story of how Samaritans Association in Stara Zagora went the way of Social Entrepreneurship.
When there were plenty of donor's funds and programs, they asked themselves how their organization would survive if access to donors' resources was limited, especially with Bulgaria's potential accession into the European Union and insecure funding from the State budget. In the process of analyzing the prospects, the team decided to take advantage of the Law allowing nonprofit organizations to develop business activities.

Although this decision looked attractive, Samaritans identified many factors that they needed to consider for their future business activities, such as:
 
 potential to acquire the necessary knowledge and skills;
 available start-up resources, which could be mobilized;
 the ability to take advantage of the natural resources in the region and country;
 market niche for their business activities;
 governmental legislation and policy incentives for the business activity;
 relatively easy market entry;
 opportunity to generate income covering 50% of the organizational expenses; and
 opportunities for a relatively quick return on their investment.

With this long list of criteria, the young and ambitious Samaritans Association team started their research. In the end, they decided on beekeeping and production and trade of honey products as the main activities of their social enterprise. And that's how it all began…

Launching a business activity in the field of beekeeping has been a real challenge for the nonprofit organization. The difficulties were mostly connected to finding a supportive environment; attracting partners among recognized beekeeping associations; finding a qualified manager for the apiary; training and qualifying the team; developing a ten year strategic plan; and attracting investments. As a result, a vision of a Social Enterprise active in the production and trade of honey, honey products, and apiary equipment was formed, with the overall idea that it will generate the necessary resources to implement their mission: social services for marginalized children, youth, and families through the Center for Social and Educational Assistance.

Samaritans Association ethical standards determined that business development was not only for the sake of the business, but just as importantly to help cover the activities of the organization in achieving its social goals. Due to this, its Social Enterprise clients not only enjoy the different goods and products, but also support the social mission of the organization.

What financial resources started it all?

The initial investment in the Social Enterprise was $2,000 from the Reserve Fund of the Association, which was accumulated by setting aside 5% of each unrestricted donation made to the organization. Other financial resources were a matching funds program which raised $5,000, and tangible assets: land valued at more than $16,000.

Maybe the most innovative venture for fundraising was the "Buy a Beehive, Help a Child" initiative. During the first year of the apiary, the Samaritans team reached the conclusion that if one beehive is bought at the beginning of each beekeeping period, and the year is good, at the end of the season, the income from the production fully covers the initial beehive investment. Thus, after the first year, the beehive is fully repaid and during the next 15 years it creates a profit. Everybody and anybody can become a donor of a totally equipped beehive for 200 BGN. Although this is a one time donation, it continues to multiply and the profit from production can be used to provide social services. Thanks to the "Buy a Beehive, Help a Child" initiative, the social enterprise has been successful for three years and it is becoming more sustainable and competitive under real market conditions.

New initiatives of the Samaritans Association Social Enterprise

The young team's inexhaustible energy and ideas continue to expand their business activities including opening a shop where the products will be sold. Anther new direction is the organization acting as official representative for the Dutch company Swienty in Bulgaria. Swienty is one of the world's leading producers of high quality bee-keeping equipment and technology. And last, but not least, Samaritans Association opened a new "Eurocenter for Modern Beekeeping and Technologies" under an EU PHARE program. During the year, the Center will provide specialized consultations and trainings for beginning bee-keepers and youths wishing to become professionals.

Published this material in Counterpart Newsletter,
January – March, 2005

Dimo Dimov - Social Enterprise Manager, published
this material in Samaritans Association Newsletters
No-s. 8,9,10.

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