The first social firm (aka "affirmative business") model was created to employ people with psychiatric
disabilities and is credited to the Italians. The social firm model was founded on, and continues to
adhere to, the following principles: over a third of employees are people with a disability or labor
market disadvantage, every worker is paid a fair-market wage, and the business operates without
subsidy, and has gained prominence throughout North America, Japan and Europe. The growth of the
social firm movement has been aided by legislation that supports the businesses, policies that favor
employment of people with disabilities, and support entities that facilitate technology transfer.18 Such
regulations as advantageous tax laws, preferential contracting terms, and government subsidies have
created an enabling environment under which social firms have flourished