The key to developing the social economy is a strategic approach to management by the Ministry of Labor, supported by inter-ministerial cooperation, which has been insufficient in recent years. "It is inter-ministerial cooperation that my fellow auditors have identified as one of the significant risks resulting in many failures. This type of cooperation cannot be built only voluntarily. If this area is a priority for the government, it is necessary to commit the institutions concerned to systematic cooperation and accountability," said Ľubomír Andrassy, President of the SAO.

As of September 2018, 645 social enterprises have been registered in Slovakia, while 564 of them are operating according to the current register. Almost 90% of the enterprises fall into the group of integrative social enterprises, which are of public benefit purpose. At least 30% of their employees are disadvantaged or vulnerable persons. As the national auditors found, the only support consistently used is integration enterprises, where the owners are mainly motivated by compensatory aid in the form of a compensatory financial contribution. "Social enterprises, in line with the philosophy of their establishment and subsequent operation, should serve primarily as a kind of intermediate step and instrument that draws a critical group of the population, not only the disabled but also the long-term unemployed, into the working environment to acquire work habits and new skills. However, they are not meant to replace standard businesses, as is currently the case, where social enterprises are becoming a long-term place of employment for disadvantaged groups," says the head of the National Audit Office.

The full text of the press release about this issue in Slovak language is available here.