What is social economy?
Social economy, also referred to as associative economy, is a sector of the economy mostly made up of small, local, non profit enterprises that draw their inspiration from democratic values and that have as their goal to improve social, economic, and environmental conditions within their communities, most often in favour of the less fortunate. In a world where complexity and diversity is constantly on the rise, this type of value added economy will increasingly be called upon because it provides answers to both economic and social imperatives.
What does a social economy enterprise consist of?
Social economy enterprises are usually managed as ordinary businesses; they produce goods and provide services destined to a market economy. However, they manage their activities and use their profits to benefit social and community interests. Generally, social economy enterprises evolve from large scale community development strategies where citizens, governments, community and benevolent organisations, businesses, teaching organisations, and any other valid partner, get involved and participate in their creation.
Social economy enterprises represent a viable and flexible tool capable of helping communities to achieve particular objectives such as:
- stimulate job creation and improve skills and abilities
- reinforce the community's capabilities in terms of social support
- support economic growth and neighbourhood revitalization
- protect the environment
- mobilise groups which are at a disadvantage
