Social economy and entrepreneurship

The sector of social entrepreneurship includes a variety of manufacturing and business organizations whose founding was not based on profit, but rather on solving specific social issues or encouraging sustainable local development. It may be manifested in multiple forms: citizens’ associations, social cooperatives, business incubators, as well as standard limited liability companies. It depends on specific circumstances in different countries, whether there is a special law or national strategy regulating its establishment and operation, what is the tradition of solidarity organization in economic activities, what kind of financial support measures are in place, etc. Social enterprises differ from traditional civil society organizations by more pronounced economic activity and readiness to take economic risks in their operations. At the same time, social enterprises are clearly different from for-profit companies and traditional cooperatives by a stronger orientation towards broader social goals and interests of the community.Social economy is a broader concept than social entrepreneurship. This field of economy constitutes ‘…a broad range of activities which have the potential to provide the opportunities for local people and communities to engage in all stages of the process of local economic regeneration and job creation, from the identification of basic needs to the operationalization of initiatives. The sector covers the economic potential and activities of the self-help and co-operation movements, i.e. initiatives which aim to satisfy social and economic needs of local communities and their members’ (Molloy et al, 1999). This sector includes different types of cooperatives, social enterprises, non-governmental organizations engaged in solving various social issues, organizations founded and supported by the public sector which cooperate with civil society organizations, different organizations and initiatives that support the work of those who directly solve social issues, etc. In the most general sense, initiatives in the field of social economy are primarily focused on human needs.