Unlocking the Social Economy 2025

The social economy has been helping to drive inclusive outcomes for decades. It comprises distinct business models that prioritize social and environmental value and are organized or registered as associations, co-operatives, foundations, not-for-profit organizations, voluntary groups and social enterprises. The millions of people engaged in the social economy highlight their potential to enact scalable change. A recent study by the World Economic Forum found that there could be as many as 10 million social enterprises globally, employing 200 million people.33 They are collectively generating over $2 trillion in annual turnover, which is larger than the fashion or advertising industry.34 What is a social enterprise? BOX 1 The Social Enterprise World Forum describes five characteristics shared across various definitions of social enterprises.35 These five standards are used by the People and Planet First social enterprise verification system: Social enterprises exist to solve social and/or environmental problems. They prioritize purpose over profit in operational and strategic decisions. A portion of income is earned through trading. They reinvest most of any surplus towards their purpose. They choose legal structures and financing that protect and lock in purpose over the long term. Source: Social Enterprise World Forum Social enterprises are intentionally driving equity. A study from Europe suggests that the purpose of 66% of all social enterprises is to improve outcomes for target beneficiaries. The top five target groups for social enterprises in Europe are youth, women, individuals with mental disabilities, individuals with physical disabilities and long-term unemployed.36The following sections outline how the social economy drives impact along the five dimensions of economic equity. While each section focuses on one of the five dimensions, many social enterprises drive economic equity across multiple dimensions. The social economy and social innovation actively address socioeconomic and environmental challenges and contribute to a just twin transition by aiming for marginalized groups to not be left behind and that the benefits of these transitions are shared equitably. This includes challenges related to poverty alleviation, healthcare, education, housing and community development, as well as environmental conservation and promoting fair access to resources. Source: Organisation for Economic Co-operation and Development (OECD). (n.d.). Social Economy and Social Innovation. https://www.oecd.org/en/topics/sub-issues/social-economy-and-social-innovation.html. Image credit: ProjectTogether 12 Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions