Tajikistan advances in implementing social entrepreneurship law

To fully implement the "Social Entrepreneurship Law," a working group has been formed and is actively operating under the State Committee on Investment and State-owned Property Management of Tajikistan (GosKomInvest).

An official source within the GosKomInvest says the group consists of representatives from ministries, local consultants, development partners, the private sector, and social entrepreneurship organizations.

It is worth noting that by government’s decree dated May 1, 2025, the GosKomInvest was appointed as the authorized state body for social entrepreneurship. The Committee is tasked with ensuring the implementation of state policy in this field, improving the social entrepreneurship climate, conducting research and monitoring, offering recommendations for the development of social entrepreneurship, and carrying out other responsibilities outlined in the law.

The Committee highlighted that, in accordance with the law, drafts of secondary legislation have already been prepared, including a draft government decree on "Approving Methods for Evaluating the Impact of Social Entrepreneurship."

The source emphasized that the working group has developed a Methodology for Assessing the Impact of Social Entrepreneurship. The primary goal is to provide a realistic assessment of the activities of social entrepreneurship entities in solving social issues, achieving sustainable development goals, and assessing the effectiveness of state support measures and other types of assistance.

“The Methodology for Evaluating the Impact of Social Entrepreneurship is one of the key factors for the successful development of this sector in the country, helping to increase the effectiveness of social entrepreneurship initiatives while ensuring control over achieving the priority strategic goals in socio-economic policy as defined by the state,” the source said.

Furthermore, to ensure the law's effective operation, the working group has reportedly prepared drafts of a Roadmap and Action Plan, which are currently under coordination with relevant ministries and agencies. The Tax Committee has also prepared a draft "Procedure for Maintaining the Register of Social Entrepreneurship Entities."

 

What the law encompasses

The "Social Entrepreneurship Law" was adopted on January 2, 2025. It was developed "to improve the standard of living for the population, provide assistance to vulnerable groups, and address social issues by creating a favorable economic climate for social entrepreneurship in the country."

The authorities believe that social support for the population is not only about providing financial and material assistance to vulnerable groups but also about creating favorable conditions for restoring their labor capabilities and economic integration. They also see the economic engagement of this category of citizens as a means of partially compensating for increased budget expenditures through tax revenues from their economic activities, which will help achieve further financial stability and self-sufficiency.

Authorities expect that the law will "create legal conditions to overcome social imbalances in the labor market, ensure fair, inclusive treatment in the exercise of socio-economic and other rights of vulnerable groups, and thereby guarantee sustainable improvement in their lives and welfare."

According to the law, social entrepreneurship entities include individual entrepreneurs and legal entities engaged in social entrepreneurship activities and recognized as social enterprises or social entrepreneurs.

The law defines vulnerable groups as:

·         People with disabilities and others with limited abilities, including children with disabilities;

·         Orphaned minors, children left without parental care, graduates of orphanages (up to 23 years old), and minors in socially dangerous environments;

·         Pensioners and individuals with less than two years until retirement, elderly people partially or completely unable to care for themselves, and individuals living alone, including elderly couples;

·         People in difficult life situations who need temporary shelter or urgent social services;

·         Low-income citizens, single-parent families with minor children, families with more than five minor children, individuals who have lost their breadwinner and lack income sources;

·         Veterans of the Great Patriotic War of 1941-1945 and equivalent persons (and their spouses);

·         People affected by technological disasters (including those at the Chernobyl nuclear power plant and other areas of radioactive contamination), victims of emergencies, and military conflicts;

·         Victims of any form of violence, including human trafficking, labor, or sexual exploitation;

·         Single minor mothers with young children and single minor pregnant women;

·         Refugees and internally displaced persons, as well as families of migrant workers who have lost material support;

·         Homeless individuals and those released from penal institutions or compulsory treatment facilities.

 

What is social entrepreneurship?

Social entrepreneurship refers to business activities aimed at supporting socially vulnerable groups and providing goods, services, or works with social purposes.

The subjects of social entrepreneurship are individual entrepreneurs and legal entities engaged in such activities and recognized as social enterprises or social entrepreneurs.

It typically involves small or medium-sized businesses that aim not only for profit but also to support certain categories of citizens or achieve socially beneficial goals. These goals may include addressing social problems such as:

·         Assisting people with disabilities;

·         Addressing educational and environmental issues;

·         Solving other social problems.

The key difference between social enterprises and non-profit organizations is that the former solve social issues through business activities. They generate financial profit, while charities and other non-profit organizations do not.

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