Studies show that the interaction and mechanics of economic and societal activities need to be further understood by Hungarian social entrepreneurs. [ 5 ] The legacies of socialism are apparent in the fact that there are still few market-oriented approaches towards social issues, and a young business culture that lacks corresponding management skills. Nonetheless, economic awareness and entrepreneurial attitudes are spreading: in the past few years, for instance, local social enterprises have moved from relying on grants towards revenue-generating activities to finance their operation.
A handful of incubators operate regionally and provide pro bono, long term help to the growing social economy, while the EU remains a strong funder of initiatives. Public support is crucial for many ventures, as social investment is still very limited. Uniquely, Hungarian taxpayers can donate 1 % of their income taxes to a chosen organization to provide microfinancial support. Implemented in 1996, this legislative action has allowed individuals to direct some of their taxes to religious institutions and non-profit organizations approved by the tax authority. While this innovation benefits charities and foundations, social enterprises will have to look elsewhere.
Fig. 4: A school child learning to use the Abacus, 1949
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