IDEAS Insights Hungary's Social Enterprise Landscape | Page 6

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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