Social Entrepreneurship in Cyprus

Things are moving somewhat slowly in Cyprus, and the concept of Social Enterprise is still at an early stage.

Even though all those components required for developing a social enterprise and social economy ecosystem, such as altruism and a sense of solidarity, are pervasive in society.

All this is recorded in the research conducted by the EC on social enterprises and their ecosystems in Europe published in 2020.

It specifically states that the sector in our country is underdeveloped and extremely small, as it consists of approximately 190 entities while pointing out the absence of a competent, relevant legal framework.

Nonetheless, in Cyprus, the process of forming the competent legislative framework governing the operation of Social Enterprises is underway and hopefully finalised within 2023.

Given this discussion, it is particularly important to point out the need to create an environment that will favour, through specific tax and other incentives, the attraction of interest in creating SEs in Cyprus.

The relevant operating regulations should be understandable and applicable, and the incentives granted should be economically attractive (business oriented), so the ecosystem of social entrepreneurship in Cyprus can be fully developed on the right basis even if its specifications at this stage are not completely consistent with the Cypriot reality.