Concerning the European Employment Strategy, the policy is highly relevant to Guideline 6 (Enhanced labour and skills supply) and Guideline 8 (Fairness, combating poverty and promoting equal opportunities for all) of the EEA Employment Guidelines.

It is expected that social enterprises, registered according to the Act 112/2018 on Social economy and social enterprises, will offer quality job opportunities for disadvantaged and vulnerable groups, with the main focus on long-term unemployed, youth, ethnic minorities or people with disability. Along with employment, social enterprises may provide their disadvantaged employees with training opportunities, increasing their chances on the open labour market.

The definition of disadvantaged groups is anchored in the Regulation (EU) No 651/2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.

The Act 112/2018 aimed to secure a basis for social enterprises in the wider area of social economy, with the social enterprise focusing on achieving “a positive social impact”. Social economy is defined in the Act as “the summary of productive, distributive or consumer activities carried out by means of economic activity, or non-economic activities independently from public authorities, whose main aim is to achieve a positive social impact” (after the Host country paper).

The Act extends the focus of social enterprise activities to include not only social enterprises for labour market integration but other specialisations as long as they contribute to the achievement of measurably positive social effects.

It changed the provision of employment support. In comparison to active labour market policies which traditionally target people registered as jobseekers (with particular attention to those who remain registered long-term), the new Act defines disadvantaged people as those who have not been employed over the past six months and belong to minority groups defined based on characteristics such as age, level of education, duration of registration in the labour office register, social situation, national or ethnic minority background, the aera of residence.

• To extend the narrow understanding of social entrepreneurship and to establish social entrepreneurship as a fully-fledged component of the business sector.
• To create a supporting ecosystem and to provide potential and existing social enterprises with a spectrum of supportive measures including a variety of financial assistance measures, non-direct financial support (e.g. tax benefits) and free technical assistance on all topics related to the operation of social entrepreneurship.
• To extend a spectrum of quality job opportunities for people from disadvantaged groups and combat the persistence of long-term unemployment in Slovakia.

• The status of registered social enterprise is currently granted on the basis of a simple application form accompanied by appendices. The number of registered social enterprises is growing gradually.
• Compensation aid for subsidising labour and other related costs of disadvantaged employees is in place and accessible for registered social enterprises.
• Investment aid to support the growth of social enterprises developing regions is also in place, and may be provided in a form of loan or a combination of both a loan and a grant.
• Registered social enterprises may apply for a low VAT level, are given preferential treatment in public procurement processes, or may enjoy other non-financial benefits.
• The service voucher model is also in place to stimulate the market for social enterprises.
• Free technical assistance for potential and existing social enterprises provided by the Institute of Social Economy is accessible also in the regions. 
• Support for social enterprises has increased in other governmental departments, many of whom are implementing/considering separate schemes supporting social enterprises (e.g. Ministry of Economy or Ministry of Culture).

Outputs

• As of 1 January 2020 66 social enterprises who passed the registration process are included in the register of social enterprises under Act 112/2018.
• All of the registered social enterprises are focused on work integration.
• A separate unit at the Ministry of Labour, Social Affair and Family of the Slovak Republic was established called the Social Economy unit which acts as the public administrator for social enterprises, interpreting the Act, and responding to appeals by registered social enterprises etc.

Outcomes

• The Institute of Social Economy (ISE) plays a key role in the implementation of the Act. It is a large-scale project managed by the Implementing Agency of the Ministry of Labour, Social Affairs and Family of the Slovak Republic. Its purpose, as stated in the new Act, is to improve the functioning of the social economy and to promote its activities and benefits. As of 1 January 2020 all planned regional centres (seven in total) as well as the coordination center in Bratislava were in operation.
• Financial schemes – compensation and investment aids for social enterprises – have been put in place to support the growth of social enterprises and amount to a total of EUR 100 million.
• Other support measures such as service voucher, preferential treatment in public procurement processes, and lower VAT levels are also in place and other measures are under consideration/preparation.
• The existence of the policy significantly contributed to clarifying the social entrepreneurship concept, which is gradually receiving increased recognition in Slovakia and increased attention and involvement from a variety of stakeholders including, for example, financial institutions, business sector, governmental departments, and academia.