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SOCIAL ECONOMY

Social economy

What is the social economy

The social economy is much more than just a form of economic activity; it is a movement that places people at the centre. Unlike the traditional capitalist model, it seeks a balance between economic development and social welfare.

According to the European Commission, the social economy is made up of a range of enterprises, organisations and legal entities that share the goal of placing people first, generating a positive impact on local communities and prioritising social goals over profit.

The social economy has gained political relevance and is increasingly recognised for its contribution to economic growth, setting the foundations for a more sustainable industry and facilitating an equitable green and digital transition. Therefore, as the United Nations, explains, the social economy can contribute to the achievement of the Sustainable Development Goals, as set out in the 2030 Agenda, and their adaptation to the local context.

The fundamental values of the social economy:

  1. Social impact
  2. Solidarity
  3. Responsibility
  4. Reciprocity

The principles of the social economy

  1. Valuing people before capital. Social economy organisations put people and their well-being above money. They are managed in an autonomous, transparent, democratic and participatory manner.
  2. Profit sharing. The profits obtained are distributed according to the work and effort of the members or are used to fulfil the social objectives of the company.
  3. Promotion of solidarity. Internal and external solidarity is encouraged, supporting local development, gender equality, social inclusion, the creation of stable jobs, and work-life balance.
  4. Independence from public authorities. These organisations should preserve their autonomy from governments and public authorities.

What weight does the social economy have in overall GDP?

social economy in Spain

10% of Spanish GDP

social economy in UE

6-8% of European Union GDP

social economy in the world

7% of global GDP

The social economy in the European Union - the figures

> 2,8 million organizations and entities

6-8% of GDP

>13 million jobs

> 6.3% of the active population

>82 million volunteers

>232 million members of mutuals, cooperatives and other similar entities

Source: Spanish Presidency of the Council of the EU and CIRIEC-International.

The social economy in Spain

In Spain, the social economy contributes around 10% of GDP and employs more than 2 million people. This sector includes:

  1. Cooperatives
  2. Mutuals
  3. Foundations and associations with an economic activity
  4. Worker-owned companies
  5. Social enterprises focusing on providing employment for the most disadvantaged individuals
  6. Special employment centres
  7. Fishermen's guilds
  8. Agricultural processing companies
  9. Unique entities founded on specific rules and governed by the four principles of the Social Economy

The numbers of the social economy in Spain

social economy entities

43,233 Entities

jobs related to social economy

2,184,234 Direct and indirect jobs

members of assotitations related to social economy

21,625,063 Members of associations

Source: Spanish Social Economy Business Confederation

Why bet on the social economy?

  • Positive environmental impact: Social economy enterprises create jobs and help regions grow, directly benefiting the communities where they operate.
  • People first: Here people are the most important thing. The needs of members, their personal and professional growth, always come before profit.
  • Team decision making: These companies operate democratically, which means that all members have a voice in important decisions.
  • Reinvesting in growth: Instead of distributing profits among the few, these companies reinvest their profits to improve their services and support social causes, ensuring sustainable development.
  • Diversity of entities: From cooperatives to foundations, there are many ways to be part of the social economy, but they all share a common purpose: to create a better world for everyone.

 

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