IDEAS Insights Hungary's Social Enterprise Landscape | Page 4

Historically, Hungary’s economy has been under constant change thanks to a series of transformative experiences, such as the Compromise of 1867 unifying Austria and Hungary under Habsburg rule. The newly formed dual monarchy allowed several economic opportunities to emerge, due to its large internal market and the political constellation that saw the empire dominate Central and Eastern Europe. Stability stimulated economic progress and business; however, it still largely remained a rural country and supplier of agricultural commodities regionally. Co-operatives, the closest forms of economic organization to modern social enterprises, appeared first in the 1840s. First enacted into commercial law in 1875, these enjoyed democratic decision-making processes and sometimes emphasised social goals. Some early examples include agricultural, consumption- or homebuilders’ cooperatives. [1] From 1898, a nationwide institutional network incorporated these organizations, contributing to the economic progress of the under-resourced countryside by facilitating the socio-economic mobilisation of its individuals and their market access. [2] The Hangya network boosted rural production and could reduce prices significantly with its national scale operation, and in some cases, its cooperatives maintained schools and healthcare services. [3] Fig. 2: Rural couple at a Cooperative, 1930. 2