socialeconomy

Social economy is a sector of the economy that groups organizations prioritizing social objectives and reinvesting surpluses to benefit members and the wider community. It includes cooperatives (worker, consumer, and agricultural), mutual societies, associations, foundations, and social enterprises, as well as some nonprofit bodies that generate earned income to advance public aims.

The concept has roots in 19th-century cooperative and mutual aid movements and is prominent in many countries, especially in Europe, where "économie sociale" or "economia sociale" reflects a commitment to democratic governance, stakeholder ownership, and social value over short-term profit.

Key features are democratic control (one member, one vote in many forms), reinvestment of surpluses to pursue social objectives, and a focus on local development, solidarity, and inclusion. Financing combines member contributions, public subsidies, grants, and earned income from goods or services.

Common forms include worker and consumer cooperatives, producer cooperatives, credit unions (mutuals), and associations or foundations delivering social services, housing, health, education, or environmental work. Social enterprises are businesses that pursue social impact alongside financial sustainability.

Impact is typically measured by social value, employment quality, and community benefits, using tools such as social return on investment. Policy support in many places seeks to strengthen the social economy as a model for inclusive growth, while challenges include access to finance and measuring outcomes.