It is regrettable to learn that the social economy unit within DG Grow was disontinued on 1 May as part of a larger reorganisation within the European Commission. However, we believe that this important economic player deserves a structural and sustainable place in the European Commission.
The social economy encompasses a variety of businesses, organisations and different legal entities. They share the objective of systematically putting people first, producing a positive impact on local communities and pursuing a social cause.
There are 2.8 million social economy enterprises, representing 10% of all businesses in the EU. Almost 13.6 million people – about 6.2% of the EU’s employees – work for social economy enterprises. On top of the paid workforce, social economy mobilises volunteers, equivalent to 5.5 million full-time workers.
Some characteristics of the social economy
- Membership - up to 160 million people in Europe are members of social economy enterprises (mostly retail, banking and agricultural cooperatives, as well as mutual societies offering services complementary to social security regimes)
- Objectives - social economy enterprises contribute to the EU’s employment, social cohesion, regional and rural development, environmental protection, consumer protection, agricultural, third countries development, and social security policies
- Size - social economy entities are mostly micro, small, and medium-sized enterprises (SMEs)
Social economy organisations can include non-profit associations, cooperatives, mutual societies, associations and foundations and social enterprises. And as a flagship of the New European Bauhaus, the affordable housing initiative (AHI) supports the renovation and construction of social and affordable housing at district level. The initiative guarantees projects’ access to technical and innovation capacity as well as project support.
We experience a major importance of the social economy for the long term unemployed, who are more and more excluded from social benefits. For them is the social economy sector an important enabler to train them in adapting skills and attitudes to take up again jobs in the regular labour market and help the long term unemployed finding work.
At the same time, we see that the social economy sector plays an important role in developing common goods, like affordable housing. Therefor it is important the European Commission keep an eye on their development especially in the upcoming revision of conditionalities for the public procurement regulations.