Social Enterprises in Poland: Development Barriers and Support Opportunities through the baSE project

Introduction

Social economy in Poland is developing dynamically, yet social enterprises (SEs) face numerous barriers that hinder their ability to fulfill their social mission and achieve stable growth. The report “Social Enterprises 2024. Self-SE” (Klon/Jawor Association et al.) highlights the key challenges, while the baSE project (Blueprint for Advanced Skills & Trainings in the Social Economy) offers a set of courses that can support SEs in addressing some of these difficulties.

Summary

Polish SEs face financial, bureaucratic, staffing, and image-related challenges that, to some extent, mirror those faced by the broader European social economy sector. The baSE project, by offering targeted and condensed training, addresses specific SE needs and equips them with tools and knowledge to build resilient, innovative, and recognizable social business models.

Analysis of SE Challenges

1. Lack of Financial Stability: As many as 73% of SEs indicate liquidity and fundraising difficulties as the main threats to their operations. Key causes include low sales volume, lack of continuity in project funding, and seasonality—especially in sectors such as cleaning or municipal services, where winter work drops significantly. Many organizations operate at the edge of profitability, with no financial reserves or long-term growth strategies. Competition in tenders and increasing fixed costs (e.g., minimum wage hikes, tax changes) exacerbate this pressure, forcing SEs to constantly balance mission and economy.

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2. Excessive Bureaucracy and Formalities: 69% of SEs report that bureaucracy consumes too many resources. Documentation—from Individual Reintegration Plans (IPRs), annual reports, to voivodeship-level filings—is often complex, time-consuming, and offers little real added value. SE managers lose motivation to work with people in need of support when they must simultaneously collect extensive, often ethically sensitive data, without knowing how the information will be used. A lack of consistent substantive support from SE support centers (OWES) results in unclear guidelines, while system errors require frequent corrections.

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3. Staffing Difficulties and High Turnover: 64% of SEs report challenges in recruiting and retaining staff, and in municipal services this issue reaches 82%. High turnover is often due to adaptation difficulties among socially excluded individuals, who may leave after just one day. SE leaders become informal social skills coaches—teaching punctuality, sobriety, communication, and workplace safety. Small teams are also burdened with administrative and sales responsibilities, limiting the time and energy available for true reintegration work.

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4. Burnout Among Managers: The complexity and pressure of running an SE leads to burnout in approximately 39% of leaders. Bureaucratic burdens, social responsibility for disadvantaged employees, and constant financial stress lead some managers to consider leaving the sector for traditional business, which offers clearer rules and greater predictability.

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5. Limited Understanding of SEs’ Social Mission: 61% of SEs report a lack of awareness of the social economy in their environment—among both individual customers and public institutions. The need to constantly explain their mission, management model, or legal form hinders relationship building. Changes in local government often mean “starting from scratch” in terms of visibility, prolonging the time needed to secure contracts and funding.

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6. Lack of Long-Term Development Strategy: As many as 64% of SEs do not have a formal strategy document with clear goals and KPIs. Without a long-term vision, it is difficult to adapt to market changes, respond to new challenges, or attract social investors.

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European Perspective

Many of the identified challenges are universal for the social economy across Europe. Service seasonality, bureaucratic burdens in national support systems, staff turnover among disadvantaged groups, or administrative instability are recurring problems in several EU member states. Exchange of good practices and joint initiatives—such as Erasmus+ projects—can help develop replicable, scalable solutions at the European level.

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