Social economy

The social economy is that part of the European Union (EU)’s economy which comprises a specific range of businesses, organisations and legal bodies, including social enterprises, cooperatives, mutual societies, foundations and not-for-profit associations, that have social objectives as their focus.

There are an estimated 2.8 million social economy bodies in the EU, employing 13.6 million people and offering solutions to some of society’s key social and environmental challenges. Their activities range from trade unions, culture and recycling to health and care-related services. The social economy contributes to the implementation of the United Nations sustainable development goals by:

• reducing poverty;
• driving the transition to sustainable cities and communities;
• promoting responsible consumption and production; and
• championing sustainable finance.

In late 2021, to help the sector reach its full potential, the European Commission adopted a social economy action plan focused on three aspects:

• creating the right conditions for the social economy to thrive;
• opening opportunities for social economy organisations to start up and scale up; and
• making sure the social economy and its potential are recognised.

At the same time, the Commission launched a ‘transition pathway’ to help enable the green and digital transitions of the social economy, working together with public authorities and other interested parties.

SEE ALSO

• Circular economy
• Sustainable development goals
• Sustainable finance
• European social entrepreneurship funds (summary)
• Commission presents action plan to boost the social economy and create jobs – press release (European Commission)
• Social economy action plan (European Commission)
• Social economy in the EU (European Commission).