The social economy is made up of a variety of businesses, organisations and legal forms. They share the objective of systematically putting people first and making a positive impact on local communities. The social economy business model aims at reinvesting most of the profits back into the organisation and/or a social cause and having a participatory/democratic form of governance.
Social economy organisations play an important role in job creation and inclusive and sustainable growth. They can facilitate labour market integration (particularly for people furthest from the labour market), industrial development and enable reskilling and upskilling. They operate in a large variety of economic sectors and ecosystems, including providing social services, health care, social housing or affordable energy to the most vulnerable, which contributes to cushioning economic hits and enhancing resilience.