Cyprus has recently seen a special interest in a new type of business. Businesses that do not have as their primary goal the creation of profit in their coffers, but towards society.
We are talking about "social enterprises", which both the state and the CCCI want to promote and we have already seen the first samples in Cypriot society, since so far four have been registered in the official Register of Social Enterprises, while one of them has already started its operation.
In order to support this institution, because it is an institution and not for the purpose of creating private profit, a special Grant Scheme for such businesses has been established, with the sponsorship reaching up to €10,000.
As Andreas Alexis, Officer of the Department of Labour Relations, Social Policy & Human Resources Development of the CCCI, explains to "F", the purpose of this grant is mainly to cover the initial costs of establishing and developing the business in order to help it in the viability of the social enterprise during the early stages of its operation.
According to Mr. Alexis, on the part of the business community, the CCCI welcomes any initiative that promotes sustainable and socially responsible entrepreneurship, especially when it creates opportunities for employment, social inclusion and local development through sustainable business models.
At the same time, as he adds, the development of social enterprises is directly linked to the ever-increasing importance of ESG (Environmental, Social and Governance) criteria.
In particular, social enterprises are perhaps the most typical example of the implementation of the "S" pillar (Social), as they actively contribute to the integration of vulnerable groups into the labour market, the creation of quality jobs, social cohesion and the reduction of inequalities.
In this light, the institution acquires particular importance not only as a tool of social policy but also as a modern form of business activity that responds to the new European and international trends for responsible and sustainable development.
Andreas Alexis' answers
What are social enterprises essentially? What does the legislation specifically provide for this type of business?
Social enterprises are a relatively new model of entrepreneurship in Cyprus and more broadly in Europe, where economic activity is combined with the achievement of a social purpose. That is, these are businesses that operate in business, offering products or services and generating revenue, but their main goal is not exclusively to maximize profit, but to create a positive social impact.
In Cyprus, there is now a specific legislative framework through the Social Enterprises Law of 2020 (Law 207(I)/2020), which created the official Register of Social Enterprises under the supervision of the Commissioner of Cooperative Societies and Social Enterprises.
The legislation provides for two main categories of social enterprises.
The first are General Purpose Social Enterprises, which promote social, cultural or environmental objectives for the benefit of society.
The second are the Social Integration Enterprises, which mainly aim at the professional and social integration of people from vulnerable population groups.
The law also sets specific conditions to ensure that they are indeed social enterprises and not just enterprises with a social character. For example, at least 70% of the revenue must come from economic activity, while a significant part of the profits must be reinvested in the social purpose of the business. At the same time, in Social Integration Enterprises, at least 40% of employees are required to come from vulnerable groups.
It is essentially a new model of entrepreneurship that attempts to combine economic activity with sustainable development, social cohesion and the more active participation of vulnerable groups in the labour market.
What grants or programs are there for this type of business? If you can give us exactly the grant.
In 2026, a special Social Enterprise Grant Scheme was activated for the first time in Cyprus by the Service of Cooperative Societies and Social Enterprises. Under the scheme, a one-off grant of €10,000 is provided to businesses that will successfully register in the Register of Social Enterprises and meet the requirements of the legislation.
The grant mainly aims to cover initial costs of establishing and developing the enterprise, such as organizational costs, purchase of equipment, operating costs, outreach services and other related costs that can contribute to the viability of the social enterprise during its early stages of operation.
At the same time, the Republic of Cyprus promotes broader planning for the development of a social entrepreneurship ecosystem, utilizing European financial tools. The general direction is the gradual creation of a more comprehensive support framework, which includes not only financial incentives but also counselling, training and guidance for those concerned.
How many of these businesses have registered to date?
The institution of social enterprises is still at a relatively early stage in Cyprus, despite the fact that the relevant legislation has already been in place for a few years.
According to recent public reports, to date only four social enterprises have been registered in the official Register of Social Enterprises. This fact shows that the institution is still in its early stages, although it seems that there has been increased mobility and greater interest lately.
Of particular importance was recently the operation of the first social enterprise for integration in the catering and coffee sector, which is considered particularly important for the gradual practical implementation of the institution in the Cypriot market.
In his greeting at the inauguration of the company, the Commissioner of Cooperative Societies and Social Enterprises, Mr. Kypros Protopapas, characteristically stated that with these first initiatives "the institution passes from theory to practice", underlining that social entrepreneurship can function as a tool for social inclusion, the creation of employment opportunities and the development of an economy with a more humane face.
This position also reflects the philosophy behind the institution, namely that business activity can be combined with substantial social impact and not exclusively with economic indicators or the achievement of profit.
Is there sufficient interest and how can someone who is interested find information to proceed with an application?
Interest seems to be gradually increasing, especially after the activation of the Social Enterprise Register and the announcement of the first grant plans.
The existence of a specific legislative framework and financial incentives creates greater security and prospects for those interested in operating in the field of social entrepreneurship.
At the same time, social entrepreneurship is becoming increasingly important at the European level, as it is linked to issues of sustainable development, social cohesion, green transition and the integration of vulnerable groups into the labour market. This is expected to positively affect the development of the institution in Cyprus in the coming years.
Interested parties can find information through the website of the Service of Cooperative Societies and Social Enterprises on Gov.cy platform, where the application forms, the registration guides, the terms of participation in the Registry as well as the relevant grant schemes are available.
The important thing is that there is now an official and organized framework, which attempts to gradually create a new culture of social entrepreneurship in Cyprus, linking business activity with social contribution and sustainable development.
