Next steps for Europe’s social and solidarity economy

August 23, 2022

2022 has proven to be a banner year for Europe's social and solidarity economy plans. In addition to the implementation of initiatives at the EU and OECD level, a wide range of social and solidarity economy initiatives have been created or strengthened across the continent.

The social and solidarity economy can be an important tool in the fight against social exclusion and poverty, as well as a key driver of innovation. In order to build on this momentum, it is important to continue to support the social economy through policy initiatives, funding, and capacity building.

Looking ahead to September, what are the next steps for the social economy in Europe? Below are a few priorities.

• Supporting social enterprises through policy initiatives: In order to continue to support social enterprises, it is important to implement policies that will create a level playing field and allow them to thrive. This can include measures such as preferential procurement rules, social impact bonds, and social enterprise zones. For example, the social impact bond model has been successfully implemented in certain contexts and should be adapted to fund different social initiatives.

• Increasing funding for social enterprises: Social enterprises often have difficulty accessing capital, which can limit their growth potential. In order to support social enterprises, it is important to increase funding available through programs such as social impact investing and social venture capital. One way to do this is through the creation of social enterprise funds, which can invest in a wide range of enterprises and initiatives.

• Building capacity for social enterprises: Social enterprises often lack the resources and capacity to scale up their operations. In order to support social enterprises, it is important to build capacity through training and technical assistance programs. Additionally, it is important to create an enabling environment that supports social entrepreneurship, such as incubators and accelerators, including in partnership with the private sector.

• Supporting social entrepreneurship: Social entrepreneurship can be a powerful tool for change, but it can often be difficult to get started. In order to support social entrepreneurship, it is important to provide resources and training that will allow social entrepreneurs to get their businesses off the ground. As an example, the European Commission's Social Entrepreneurship Action Plan provides a range of support for social entrepreneurs, including mentoring, networking, and access to finance.

• Connecting social enterprises: Social enterprises often operate in silos, which can limit their impact. In order to support social enterprises, it is important to create opportunities for them to connect with each other. This can be done through social enterprise networks, online platforms, and conferences and events.

• Increasing social innovation: Social innovation is essential for the social economy to continue to grow and thrive. In order to support social innovation, it is important to create an environment that is conducive to innovation, such as incubators, accelerators, and funding for social innovation. As an example, the European Investment Bank has launched the social innovation tournament, which is a competition that provides funding for social innovators.

• Building hybrid partnerships between social businesses, banks and multinationals: Banks and multinationals are increasingly interested in social enterprises and impact investing. In order to support social enterprises, it is important to build partnerships between social businesses, banks, and multinationals. These partnerships can take many forms, such as social impact bonds, joint ventures, enterprise development programs, and social innovation labs.

• Supporting social finance: Social finance is a key tool for social enterprises, as it allows them to access the capital they need to grow and scale their operations. In order to support social finance, it is important to create an enabling environment, such as social impact bonds, social enterprise zones, and social finance funds.

The social economy is an important part of Europe's future and it is important to continue to support it through policy initiatives, funding, and capacity building. By taking these steps, we can build a more solidarity-driven world after the pandemic.

CPM