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OJ C, 29.11.2023

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New enterprises in the social economy can be a powerful vehicle for job creation and positive social change. Social economy can provide opportunities for some underrepresented groups, such as women and young people, to enter the labour market or set up social businesses. According to the Global Entrepreneurship Monitor, an estimated 55 %
of the worlds social entrepreneurs are men and 45 % are women, while in general self-employed women are outnumbered by two-to-one by men. According to a recent Eurobarometer on young peoples attitudes to social entrepreneurship, young people value the importance of social and environmental goals and participatory leadership. Member States could consider ways to minimise disincentives for potential entrepreneurs, such as ensuring they maintain access to proper social safety protection. Some Member States have reduced social security contributions as an incentive for social economy entities to hire staff. Ensuring there is an enabling framework for business transfers to employees to form worker cooperatives, or other relevant worker-owned social economy models, can also be a way to ensure continuation of small and family businesses and to avoid job losses, for instance in the case of restructuring. Member States could also implement facilitating measures for mainstream businesses to transition to social economy entities.

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Social economy entities also promote the inclusion of young people, particularly young people not in education, employment or training NEETs. They provide training and skills development programmes and apprenticeships as referred to in the Council Recommendation of 15 March 2018 on a European Framework for Quality and Effective Apprenticeships 8, and employment opportunities. They therefore contribute to the goals set by the Youth Guarantee referred to in Council Recommendation of 30 October 2020 on A Bridge to Jobs Reinforcing the Youth Guarantee 9 and the Council Recommendation of 16 June 2022 on a European approach to microcredentials for lifelong learning and employability 10. Union funding such as the European Social Fund Plus programme established by Regulation EU 2021/1057 of the European Parliament and of the Council 11 can support social economy entities in this role. To this end, successful collaborative initiatives between public employment services and social economy entities have taken place in Member States 12. Under those initiatives, social economy entities play an important role in identifying people in need of assistance and in developing tailored plans to help them achieve social and occupational integration, including training and work opportunities.

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Social economy entities can promote fair working conditions by involving employees in their governance and decision-making. Promoting social dialogue in the social economy can improve the working conditions of employees. Member States can foster and build on this aspect of the social economy and make use of its know-how by involving social economy entities in the design and implementation of active labour market policies 13. Member States can also explore possibilities to facilitate the participation of social economy employers in social dialogue.

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The social economy contributes to the Union of Equality strategies adopted by the Commission by promoting the social inclusion of disadvantaged and underrepresented groups, for example through the provision of social and care services including childcare, health care and long-term care, social housing and support for children and young people with special needs. The social economy entities help reduce inequalities, such as the gender employment gap, both by directly employing a large proportion of women and by providing care services that enable caregivers, the majority of whom are women, to join the labour market. As an important partner for the public sector, the social economy can make a valuable contribution to the design and delivery of residential, home and community-based care services. Through partnership initiatives, public authorities and social economy entities can provide high-quality, accessible and affordable care services.

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OJ C 153, 2.5.2018, p. 1.
OJ C 372, 4.11.2020, p. 1.
OJ C 243, 27.6.2022, p. 10.
Regulation EU 2021/1057 of the European Parliament and of the Council of 24 June 2021 establishing the European Social Fund Plus ESF+ and repealing Regulation EU No 1296/2013 OJ L 231, 30.6.2021, p. 21.
12 One example is the Belgian support provided to collectief maatwerk, which includes financial support to work-integration social enterprises.
13 One example is the French initiative, Territoires Zéro Chmeurs de Longue Durée, which aims to combat long-term unemployment by setting up non-profit organisations in areas with high long-term unemployment rates to employ local residents on permanent contracts to carry out useful activities for the community, such as recycling, childcare and community gardening. Similar initiatives have been introduced in Groeningen in the Netherlands and Marientaal in Austria.

ELI: http data.europa.eu/eli/C/2023/1344/oj
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