Journal of Environmental Treatment Techniques

2019, Volume 7, Issue 4, Pages: 754-759

J. Environ. Treat. Tech.

ISSN: 2309-1185

Journal web link: http://www.jett.dormaj.com

Trends and Prospects for Environmental

Entrepreneurship Inclusion in Russian Socio-

Entrepreneurial Legal Model

Alexey V. Barkov *, Evgeny L. Vengerovsky , Yana S. Grishina , Maxim V. Demchenko ,

Gulnara F. Ruchkina , Olga A. Serova

Department of Economic Activity Legal Regulation, Financial University under the Government of the Russian Federation, Russia

Department of Economic Activity Legal Regulation, Financial University under the Government of the Russian Federation, Moscow, Russia

Department of Civil Law, Russian State University of Justice, Moscow, Russia

Department of Economic Activity Legal Regulation, Financial University under the Government of the Russian Federation. Moscow, Russia

Department of Economic Activity Legal Regulation, Financial University under the Government of the Russian Federation, Russia

Academic Affairs and International Activities, Pskov state University, Pskov, Russia

Received: 12/04/2019

Accepted: 24/08/2019

Published: 03/09/2019

Abstract

Relevance of the study: the Relevance of the issue due to the need to search for legal tools that can reduce the impact of the

socio-ecological crisis, the consequence of which is environmental pollution, reducing the quality of life and environmental

protection of Russians. In these conditions redistribution of part of expenses on protection and reproduction of natural resources

between the entities of business activity, formation of bases of legal support of ecological entrepreneurship are represented by the

major tasks aimed at the solution of ecological problems. In many foreign countries, such an effective legal anti-crisis tool is social

entrepreneurship, in the model of legal support of which, environmental entrepreneurship is considered as one of the most important

components. The purpose of the study: the purpose of the article is to identify trends and assess the prospects for the inclusion of

environmental entrepreneurship in the Russian socio-entrepreneurial legal model. Research methods: empirical (comparative legal,

description, interpretation); theoretical (formal and dialectical logic) research methods. The leading method of studying this problem

is the comparative legal method. Results of the study: 1.The definition of environmental entrepreneurship, which should be

understood as a socially oriented economic activity aimed at ensuring environmental safety, rational use of natural resources,

environmental protection, the profit of which is guaranteed to be reinvested in the solution of social and environmental problems. 2.

A foreign the trend is identified of environmental entrepreneurship evolution in unified communications with the law on social

entrepreneurship. 3. It is determined that, despite some similarities between the Russian and Italian models of legal support for the

development of social entrepreneurship, the Russian legislative model does not provide support for social enterprises engaged in

environmental entrepreneurship. Practical significance: the research consists in recommendations on the adjustment of the Russian

socio-entrepreneurial legal model, taking into account foreign experience.

Keywords: Ecological Entrepreneurship; Social And Entrepreneurial Model.

costs on protection and reproduction of natural resources

Introduction

between business entities, the formation of the foundations of

legal support for environmental entrepreneurship as a special

type of business, are the most important tasks facing Russian

society.

In many foreign countries social entrepreneurship, in the

model of legal support of which, environmental

entrepreneurship is considered one of the most important

components becomes an effective legal anti-crisis tool for

solving or smoothing social and environmental problems. (3).

Despite the proposed for CIS participants at the fifteenth

plenary session of the inter-parliamentary Assembly

Unsolved environmental problems, which result in

environmental pollution, reduced quality of life and

environmental protection of Russians, necessitate the search

for tools that can reduce the impact of the social ecological

crisis. Under these conditions, the redistribution of part of the

Corresponding author: Alexey V. Barkov, Department of

Economic Activity Legal Regulation, Financial University

under the Government of the Russian Federation, Russia, E-

mail: barkov_a_v@mail.ru.

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Journal of Environmental Treatment Techniques

2019, Volume 7, Issue 4, Pages: 754-759

(

Resolution №. 15-6 of June 13, 2002), the Model law on the

program Europe 2020 to the EU countries as a model of

social enterprise. In this regard, answering the main

methodological question: "what to compare?" it is quite

reasonable to answer that the comparative legal analysis is

subject to the Russian and Italian legislative approaches to

the legalization of social entrepreneurship, which will be

most consistent with the purpose of this study.

It seems that as the stages of the study, when assessing

the prospects for the inclusion of environmental

entrepreneurship in the Russian socio-entrepreneurial legal

model, with the use of the above-mentioned methods we

should consider: the identification of trends in the

basics of environmental entrepreneurship (hereinafter - the

Model law), in Russia this type of business activity has not

yet been legalized. At the same time, the Russian socio-

entrepreneurial legal model has acquired a real legislative

outline, since on July 11, 2019, state Duma in the third

reading supported the bill on amendments to the Federal law

on the development of small and medium-sized enterprises

(SMEs), in terms of consolidation of the concepts of social

entrepreneurship, social enterprise. (On introducing

amendments to the Federal law About development of small

and medium entrepreneurship in the Russian Federation in

the part of the consolidation of the concepts of social

entrepreneurship, social enterprise: bill №. 620203-7//

http://sozd.duma.gov.ru/bill/620203-7 (accessed 12.07.19)),

development

legislation

environmental

entrepreneurship in foreign countries; features of the Russian

socio-entrepreneurial model; comparative legal analysis of

Russian and Italian socio-entrepreneurial models; criteria for

(hereinafter - the draft law on social entrepreneurship). In this

regard, the study of trends and prospects for the inclusion of

environmental entrepreneurship in this legal model is quite

relevant scientific issue.

presenting

state

support

socio-environmental

entrepreneurs. The focus of the study is on the methodology

of the science of business law, so the theoretical basis of the

study was primarily fundamental work on business law

(

7,9,16,21,22,25) and legal support of social entrepreneurship

15,18,19).

Methodological Framework

The research methodology is based on empirical

(

comparison, description, interpretation) and theoretical

formal and dialectical logic) research methods. The leading

3 Results

method of studying this problem is the comparative legal

method, which allows by comparing foreign and Russian

legislative approaches to assess the prospects for the

inclusion of environmental entrepreneurship in the Russian

3.1 Trends in the Development of Legislation on

Environmental Entrepreneurship in Foreign Countries

In the absence of a special law on environmental

entrepreneurship in foreign countries, its official definition

can be considered the following concept, which is coming

from the Directorate General for environment of the

European Commission, : - "it is the production of goods and

the provision of services for the measurement, prevention,

limitation or elimination of environmental harm, waste and

noise reduction, as well as the use of environmentally

friendly technologies, the use of which minimizes the use of

raw materials and environmental pollution" (Environment

DG. The European Commission of the EU. Environmental

socio-entrepreneurial

legal

model

and

formulate

recommendations for its adjustment, taking into account the

positive experience.

Despite the active appeal to the subject of comparative

legal research, there is no unity of views among scientists on

its methodology. The consensus of the comparators is in the

need to find answers to the key questions: what to compare

and how to compare, that is, what research methods can be in

demand? At the same time, the choice of approaches,

methods, stages, and grounds for comparison depends

primarily on the purpose of the study (8,27). It is obvious that

based on the purpose, the Russian and foreign socio-

entrepreneurial models are subject to research in terms of

identifying trends and prospects for the inclusion of

environmental entrepreneurship in these legal models.

Most of the researchers of the problems of legal ensuring

of social entrepreneurship agree that the most salient

differences appear in comparison of the European and

American models (14,18,19). At the same time, comparators,

as a rule, do not make additional efforts to justify the need to

choose to compare these legal models, since their bases are

traditional differences between the Romano-German and

Anglo-American systems of law. However, due to the fact

that the Russian law-making approach is based on the state

support of social entrepreneurs, which is typical for the

European, not the American model, the most promising basis

for comparison, when assessing the prospects for the

inclusion of environmental entrepreneurship in the Russian

socio-entrepreneurial legal model, we see the study of the

Russian and European experience. The European socio-

entrepreneurial model is based on the experience of Italian

social cooperatives, recommended by the European anti-crisis

management.

URL:

http://ec.europa.eu/dgs/environment/index_en.htm (date of

appeal: 11.03.2019)).

In the definition recommended to the CIS member States,

contained in the Model law under the environmental

entrepreneurship, it is proposed to understand the production,

research, credit and financial activities for the production of

goods, works and services, which has "the purpose of

ensuring the preservation and restoration of the environment

and the protection of natural resources" (article 1) (Model law

on the basics of environmental entrepreneurship // Portal:

Laws

Russia.

URL:

https://lawrussia.ru/texts/legal_744/doc744a417x494.htm

(date of appeal 13.06.2019)). The entities of environmental

entrepreneurship include "legal entities and entrepreneurs

without the formation of a legal entity of any legal form, in

which the production of environmental products is defined as

the main activity in the statutory documents and the share of

these products is not less than 75 percent of the total annual

volume of products in value terms, which also specialize

(have the main activity under the statutory documents) on the

performance of works and services for environmental

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Journal of Environmental Treatment Techniques

2019, Volume 7, Issue 4, Pages: 754-759

purposes" (article 4 of the Model law). These definitions

served as a reference point of the present study.

the recipient's benefit in the value chain) and determining the

economic models of the social enterprise.

In previous works, the study revealed a trend in the

evolution of environmental entrepreneurship, consisting in

the fact that in countries that have legalized social

entrepreneurship, its development can be traced in a single

connection with the legislation on social entrepreneurship (3),

as evidenced by the adoption of regulations in Spain (2011),

Ecuador (2011), Greece (2011), Slovenia(2011), Mexico

There are four main vulnerable target groups in the draft

Law: employee, producer, consumer and society as a whole.

Each selected target social group corresponds to its own

model of social enterprise, focused on: 1) recruitment of

workers, development of professional skills for sustainable

employment; 2)ensuring the promotion of products to

markets and sustainable income of the manufacturer;

3)production of goods (services) available to the consumer,

allowing to overcome (mitigate) socio-economic inequality

and (or) to create a new product in response to unmet needs;

4) ensuring the integration of unrelated stakeholders and

resources in order to create new practices that offer new

values and spread them beyond the participants of the market

exchange (23). For each model, the relevant criteria are

prescribed (there are four of them - by the number of models)

and, if one of them corresponds, the subject of SMEs has the

right to acquire the status of a social entrepreneur (Art. 24.1,

p.1a, 1 б, 1 в, 1 г, of the Bill).

(2012), Portugal (2013), France (2014), which received the

General name Laws on SSE (24). Despite the different names

of the laws: the French On social and solidarity economy, the

Spanish and Portuguese On social economy, the Greek On

social economy and social entrepreneurship, the Slovenian

On social entrepreneurship their common ideas are united in

finding a compromise between the socialist and liberal ways

of development in harmony with nature, determining the

trend towards socialization and greening of the economy and

the rights of these countries. In the context of the course of

sustainable development chosen by these countries,

considering the economic, social and environmental

components in undivided unity, in these laws the concepts of

social and green economy, social and environmental

entrepreneurship are used in a single logical and semantic

row.

3.3 Comparative Legal Analysis of Russian and Italian

Socio-Entrepreneurial Models

In General, the Russian legislative approach to the issue

of assigning the status of social entrepreneur is based on the

Italian model experience, where social enterprises, depending

on the focus on solving social problems, are differentiated

into organizations: social and labor integration and public

benefit. The first condition (Art. 24.1 p. 1 a. of the Bill) –

corresponds to the model of the Italian enterprise of social

and labor integration of type A, the second (Art. 24.1 p. 1 б,1

в,1 г. of the Bill) - type B – enterprise of public benefit (2).

Comparison of the Italian and Russian law-making

approaches gives grounds to believe that the second, third and

fourth Russian models, which are more of interest to the issue

under study, are generally aimed at "achieving socially useful

goals" (Art. 24.1 p. 1 г.), identical to the Italian model of

social enterprise of public benefit aimed at providing socially

significant services. However, in contrast to the Italian

legislation, which includes environmental services in the list

of socially significant, and therefore encourages

environmental entrepreneurship, the Russian bill does not

provide support for social enterprises engaged in

environmental entrepreneurship.

As social cooperative type A in Italy was recognized an

organization aimed at employment of socially vulnerable

segments of the population, that is, the social and labor

integration of persons, the list of categories of which was

fixed by law. The minimum allowable wage of these citizens

was determined, the number of which was to be at least 30%

from the number of members of the cooperative, designed to

ensure a decent standard of living. This is the social

entrepreneurship model in the Social Business Initiative

(Communication from the commission to the European

parliament, the council, the European economic and social

committee and the committee of the regions entrepreneurship

In contrast to the mentioned countries, in Russia it is

assumed that social entrepreneurship will develop within the

framework of the legal model of support for SMEs. However,

does the Russian legislative approach to the legalization of

social entrepreneurship meet the global trends, is it able to

become a legal basis for environmental entrepreneurship?

.2 Features of the Russian Socio-Entrepreneurial Model

Answering the questions raised while studying the

peculiarities of the Russian social entrepreneurial model, we

should first of all support the opinion of experts (Moscow

019) in assessing the high public importance of the fact on

official recognition of the potential of social entrepreneurship

in Russia, which proved its worth in many foreign countries

in solving various social problems, where profit is a means of

achieving a socially useful goal. The Ministry of economic

development within the framework of the national project

Small and medium enterprises and support of individual

entrepreneurial initiative developed the draft law on social

entrepreneurship, which defines four conditions for the

classification of the activities of SMEs to social

entrepreneurship. Compliance with one of them guarantees

the social enterprise access to the program of state support

provided by the may decree - 2018 of the President of the

Russian Federation. (On the national goals and strategic

objectives on development of the Russian Federation for the

period up to 2024: the presidential Decree №. 204, of May 7,

http://www.garant.ru/products/ipo/prime/doc/71837200/(date

of appeal 27.04.19)). In conceptual terms, the project differs

from the previously rejected bills in that it first attempted to

consolidate the criteria of social entrepreneurship, as experts

note, "taking into account the nature of the target social

group" (Moscow 2019) (that is, depending on the location of

2020.

Action

plan.

URL:

http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM

:2012:0795:FIN:en:PDF (date of appeal 27.04.2019), in

accordance with the recommendations of the UN is

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Journal of Environmental Treatment Techniques

2019, Volume 7, Issue 4, Pages: 754-759

recognized as inclusive because it is aimed at combating

poverty.

service is important to the public is the fact that he

voluntarily accepted the obligation to direct part of the profits

to solve social and environmental problems.

Social cooperative type B – public benefit has such a

name, because it is aimed at the implementation of business

activities that contribute to the solution of specific social

problems in the interests of the whole society. These

cooperatives specialize in the provision of socially useful

services primarily in priority sectors of the social sphere

It should be noted that in all European countries, one of

the conditions of the legal status of a social entrepreneur,

granting the right to state support, is the imperative need to

reinvest (redistribute) at least half of the profits in solving

social or environmental problems. This approach is a

fundamental difference between socially and environmentally

responsible business, which in the world practice benefits are

not provided, and social(environmental) entrepreneurship,

supported by the state. In the first case, social and

environmental responsibility is a right. In the second – the

obligation provided by need of reinvestment of part of profit

in the solution of social and environmental problems. In this

regard, the consolidation of the "conditions for the

redistribution of profits" becomes the most effective criterion

for classifying the activities of the entity to social and

environmental entrepreneurship, as its observance becomes

the guarantor of high social utility of the social enterprise.

Thus, environmental entrepreneurship should be understood

as a socially-oriented economic activity aimed at ensuring

environmental safety, rational use of natural resources,

environmental protection, the profits from which are

guaranteed to be reinvested in solving social environmental

problems.

(social services, health, and education). However, in order to

receive state support, the social cooperative is obliged to

direct more than half of the profits to solving socially

significant problems, having this documented, and to involve

volunteers in this socially useful activity.

The focus of EU policy on the course of sustainable

development has made some adjustments to the idea of public

benefit, focusing on ensuring not only

a harmonious

combination of social and economic results in the activities of

social entrepreneurs, but also added environmental priorities

in the strategic development of society. In this regard, the

Law of Italy of 13.06.2005 № 118 on delegation of authority

to the Government to regulate social entrepreneurship

adjusted the concept of public benefit, expanding the list of

types of socially useful activities, by including in the range of

priority sectors such as environmental safety, rational use of

natural resources, environmental protection. Since then, the

legal model of social cooperative type B has acquired the

features of a business model of sustainable development,

giving impetus to the development of environmental

entrepreneurship in Italy.

Discussions

There is no consensus on the definition of environmental

At the same time, one of the novelties of the Italian

legislation was the possibility of registration of social

cooperatives A+B- mixed type, organically combining the

features of inclusive model of social and labor integration

and the model of sustainable development – public benefit.

The advantages of this eco-oriented model of social

entrepreneurship is the possibility of including not only the

poor as workers, consumers, producers at all stages of the

value chain, but also society as a whole, as a beneficiary,

ensuring environmental and sustainable development for all

parties to the process. Unfortunately, the Russian legislative

approach to the legalization of social entrepreneurship in

Russia, in General terms corresponding to the Italian

legislative approach, does not take into account this important

environmental-oriented additional element in the social

entrepreneurial model.

entrepreneurship among foreign scientists (4,12,13,17,26).

Having analyzed the articles on the studied problems

published from 1997 to 2015, contained in English-language

academic scientific journals, T.V. Ershova determined that

two approaches are used in the study of environmental

entrepreneurship (10). In a brief summary, the idea of the first

approach is that environmental entrepreneurship represents

environmental modernization in action, and the second is a

response to market and state. Russian studies of

environmental entrepreneurship were carried out most often

by representatives of economic science (11,20), which also

did not take into account the nuances of environmental

entrepreneurship as an object of legal regulation.

Only one dissertation of S.V. Zlobin is devoted to the

legal research of ecological entrepreneurship in Russia, in

which the ecological-oriented entrepreneurial activity is

considered in the aspect of its focus exclusively on profit

Will it be enough to include environmental activities in

this list in order to comply with the foreign trend in the

development of environmental entrepreneurship? There is no

doubt that this must be done. However, this is not enough.

(

28). Legal regulation of environmental entrepreneurship in

the Russian Federation: thesis of PhD in law. However, in

our view, the main qualifying feature of environmental

entrepreneurship should not be seen as profit, but as a

mission: focus on social environmental sustainability and

social well-being.

The scientific novelty of the definition of environmental

entrepreneurship, given by the authors, and in General other

conclusions of this study, and its difference from the results

of other similar works, is the development of a new Central

idea that the methodological potential (ideas, principles) of

social entrepreneurship, as a tool for the study of processes

and changes in the social sphere (1), should be in demand in

.4 Logic of Foreign Legislator in the Selection of Criteria

for Submission of State Support to Social and

Environmental Entrepreneur

The logic of the foreign legislator in the presentation of

state support to social entrepreneurs is to determine the

degree of socially useful significance of its activities. Support

for social and environmental entrepreneurship will be

effective only if there is no doubt about the ability of the

social enterprise to solve social and environmental problems.

guarantee that social (environmental) entrepreneur’s

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2019, Volume 7, Issue 4, Pages: 754-759

the justification of the model for ensuring the Russian

environmental entrepreneurship.

Foreign countries have already come a long way in this

direction, and Russia still has to make the first and perhaps

not firm, but we think, not the last step. At the same time, the

question of which law is best able to solve the problem of

legalization of the special legal regime of environmental

entrepreneurship remains open and leads to further

exploration of the issues.

Conclusion

In conclusion, it is possible to draw the following

conclusions.

. Under environmental entrepreneurship, the legalization

of which is the most important task facing the Russian

society, should be understood a socially-oriented economic

activity aimed at ensuring environmental safety, rational use

of natural resources, environmental protection, the profits

from which are guaranteed to be reinvested in the solution of

social and environmental problems.

Acknowledgments

The Russian Foundation for Basic research (project No.

18-011-00792 A) financially supported the article.

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