The social economy refers to economic activity and organizations that
It includes cooperatives, associations (including charities), mutual benefit societies, foundations, and social enterprises.
The boundaries of the social economy are contested. Some definitions focus on families or legal forms (e.g. cooperatives, associations) while others emphasize values such as democracy or structures and practices that allow for substantive participation, for deliberation and joint decision-making.
The European Commission’s 2021 Social Economy Action Plan uses a broad definition that focusses on Social Economy families by either applying the criterion of legal form, for which reason all cooperatives, associations, mutuals and foundations belong to the social economy, or by self-declared intent, which characterizes social enterprises. Recognition and understanding of the social economy vary widely across EU Member States, reflecting differing historical traditions, institutional frameworks, and policy developments.
In practice the sector is highly diverse: it spans small community organizations and large international cooperative groups, and operates across welfare services, housing, agriculture, finance, and the green transition.
DICES investigates the social economy as a driver of social inclusion and quality employment. The project maps social economy organizations across six European countries (WP2–WP3), analyses their governance models (WP4), and tests new democratic practices through local pilot actions (WP6).
Economic democracy · Organizational democracy · Social inclusion · Welfare governance
European Commission. (2021). Building an economy that works for people: an action plan for the social economy. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, and the Committee e of the Regions. COM/2021/778 final. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:52021DC0778
