![Home](_derived/home_cmp_nature000_vbtn.gif)
![Up](_derived/up_cmp_nature000_vbtn.gif)
Sister Sites
Who
Owns Scotland?
Caledonia
Land Programme
Social Land Ownership
Commonweal
Papers
Land Reform Act Part 2
Guidance
Training
of Trainers
Networks of
Agents
Land reform
briefings
| |
![](_themes/nature/narule.gif)
European Union Definition and Statement on the Importance of Social Economy Enterprises
Printer friendly version of this paper
as a
44Kb doc
![](_themes/nature/narule.gif)
The importance to the European economy and society of cooperatives, mutual
societies, associations, foundations and social enterprises (which together
are sometimes referred to as the Social Economy) is now receiving greater
recognition at Member State and European levels. Not only are they
significant economic actors, they also play a key role in involving their
members and European citizens more fully in Society.
Social Economy enterprises are helping to meet the demands of a changing
Europe. They are important sources of entrepreneurship and jobs in areas
where traditional "investor driven" enterprise structures may not always be
viable. ![](_themes/nature/narule.gif)
There are certain common characteristics shared by Social Economy entities:
![bullet](_themes/nature/nabull1.gif) | Social Economy entities spring from the economic, social and cultural
needs of their members. |
![bullet](_themes/nature/nabull1.gif) | Their primary purpose is not to obtain a return on capital. They are, by
nature, part of a stakeholder economy, whose enterprises are created by and
for those with common needs, and accountable to those they are meant to
serve. |
![bullet](_themes/nature/nabull1.gif) | They are generally managed in accordance with the principle of "one
member, one vote". |
![bullet](_themes/nature/nabull1.gif) | They are flexible and innovative - Social Economy enterprises are being
created to meet changing social and economic circumstances. |
![bullet](_themes/nature/nabull1.gif) | Most are based on voluntary participation, membership and commitment. |
The Social Economy is found in almost all economic sectors. Cooperatives are
particularly prominent in certain fields, such as banking, crafts,
agricultural production and retailing. Mutual societies are predominantly
active in the insurance and mortgage sectors, whilst associations and
foundations figure strongly in the provision of health and welfare services,
sports and recreation, culture, environmental regeneration, humanitarian
rights, development aid, consumer rights, education, training and research.
Some Social Economy bodies work in competitive markets while others work
close to the public sector. Cooperatives, for example, which are formed on
the basis of fulfilling the interests of their members (producers or
consumers) play an important role in several markets and contribute to
effective competition.
The main characteristics of the Social Economy enterprises are:
Cooperatives |
![bullet](_themes/nature/nabull1.gif) | voluntary and open membership |
![bullet](_themes/nature/nabull1.gif) | equal voting rights - resolutions carried by majority |
![bullet](_themes/nature/nabull1.gif) | members contribute to the capital which is variable |
![bullet](_themes/nature/nabull1.gif) | autonomy and independence |
![bullet](_themes/nature/nabull1.gif) | particularly important is the sectors of agriculture, manufacturing,
banking, retailing and services |
|
Mutual Societies |
![bullet](_themes/nature/nabull1.gif) | voluntary and open membership |
![bullet](_themes/nature/nabull1.gif) | equal voting rights - resolutions carried by majority |
![bullet](_themes/nature/nabull1.gif) | members' fees based on insurance calculations (where
relevant) - no capital contribution |
![bullet](_themes/nature/nabull1.gif) | autonomy and independence |
![bullet](_themes/nature/nabull1.gif) | medical, life and non-life insurance; guarantee schemes; home mortgages |
|
Associations
/ Voluntary Organisations |
![bullet](_themes/nature/nabull1.gif) | voluntary and open membership |
![bullet](_themes/nature/nabull1.gif) | equal voting rights - resolutions carried by majority |
![bullet](_themes/nature/nabull1.gif) | members' fees - no capital contribution |
![bullet](_themes/nature/nabull1.gif) | autonomy and independence |
![bullet](_themes/nature/nabull1.gif) | service providers, voluntary work, sports and
advocacy/representative |
![bullet](_themes/nature/nabull1.gif) | important providers in health care, care for elderly and children and social
services |
|
Foundations |
![bullet](_themes/nature/nabull1.gif) | run by appointed trustees |
![bullet](_themes/nature/nabull1.gif) | capital supplied through donations and gifts |
![bullet](_themes/nature/nabull1.gif) | financing and undertaking of research, supporting international, national
and local projects; providing grants to relieve the needs of individuals,
funding voluntary work, health and elderly care. |
|
Social Enterprises |
![bullet](_themes/nature/nabull1.gif) | no universally accepted definition |
![bullet](_themes/nature/nabull1.gif) | have a social and societal purpose combined with
an entrepreneurial spirit of the private sector |
![bullet](_themes/nature/nabull1.gif) | reinvest their surpluses to achieving a wider
social or community objective |
![bullet](_themes/nature/nabull1.gif) | are registered as private companies, as cooperatives, associations,
voluntary organisations, charities, or mutuals; some are unincorporated. |
|
The Social Economy is important because it:
![bullet](_themes/nature/nabull1.gif) | contributes to efficient competition in the markets |
![bullet](_themes/nature/nabull1.gif) | offers the potential for job creation and new forms of entrepreneurship
and employment |
![bullet](_themes/nature/nabull1.gif) | is largely founded on membership-based activities |
![bullet](_themes/nature/nabull1.gif) | meets new needs |
![bullet](_themes/nature/nabull1.gif) | favours citizen participation and voluntary work |
![bullet](_themes/nature/nabull1.gif) | enhances solidarity and cohesion |
![bullet](_themes/nature/nabull1.gif) | contributes to the integration of the economies of the candidate
countries. |
![](_themes/nature/narule.gif)
For further information contact:
European Commission, Enterprise and Industry Directorate-General
Unit E3 Craft, Small Businesses, Cooperatives & Mutuals
Fax: +32-2-295 88 35
E-mail: Entr-Craft-Small-Business@cec.eu.int
Website:
http://europa.eu.int/comm/enterprise/entrepreneurship/coop/index.htm
![](_themes/nature/narule.gif)
|
| |
Back Home Up Next
|