In the debate between the real economy and the financial economy there is a newcomer: the social economy. Well, this is not so new since the social sector has always existed one way or another, but it is now more organized and visible than ever, with increasing employment and plebiscite by job-seekers.
The notion of social entrepreneurship, social economy or social sector is broad and varies from country to country. In France it is known as “l’écomonie sociale et solidaire” that includes social entrepreneurship. The different actors range from the civil society (NGOs, associations, …) to collective forms of insurance companies and in some cases enterprises simply providing services in the social field because of business relevance for them.
The emergence of social entrepreneurship in Europe reflects the growing need for tackling social and individual inequalities with some form of collaborative experiences and with a local mindset. It also reflects the growing inefficiency of the public institutions, public services and also budget cuts, especially in the context of a long-lasting economic crisis. Growing environmental concerns are also an area where social entrepreneurs try to invest. Moreover, there is the sense that social entrepreneurship offers different work ethics and promises as an individual choice to keep an activity not too far away from your own values.
Limited impact
In fact, the social sector has a long road ahead. In order to become more recognized by all, fully integrated in our society and economy, it must become better organized and offer some forms of professionalization. In fact, many actors have not provided any tangible results on a large scale. Moreover, there are significant internal and external constraints to take into account, such as limited access to finance, lack of awareness and structural problems of capacity.
The European Commission has recently published the social business initiative aiming at promoting smart and inclusive growth and “contribute to social cohesion, employment and the reduction of inequalities”, in line with the so-called EU2020 objectives.
It is right to believe that social innovation will foster new solutions by addressing the new challenges and social needs that we face. But social innovation must happen at the same time with the modernization of our social policies and work culture. Indeed, while promoting social entrepreneurship, there is a need to adapt and update our policy context in order to make it more flexible and effective. In the end: mixing social with innovation.
William Spac
Membre des Cabris de l’Europe
Correction: the notion of “économie sociale” as initially published was changed to “économie sociale et solidaire”, in line with the correct definition. More information can be found here.
