Proximity and Social Economy

Overview

For the purposes of this study, social economy is defined as encompassing organisations placing people and social or environmental purpose over profit, reinvesting profits to carry out activities in the interest of their members or users, or in the interest of society at large, as well as in quality services, jobs, and in the sustainable development of the communities in which they operate, following democratic or participatory governance principles. The proximity economy, on its part, is defined as a way of organising the economy around direct relationships with the objective of creating growth not solely in terms of financial capital, but also societal capital and contributing to the well-being and sustainability of our societies. Examples of such activities include but are not limited to personal and contact services, small shops, bars and restaurants, repair, cleaning, and maintenance services.

According to data from 2017, the social economy comprises 2.8 million enterprises in the EU27, 10% of all businesses, and provides over 13.6 million paid jobs in Europe (6.3% of the EU's workforce). Taken together, the proximity and social economy ecosystem is estimated to account for 6.54% of EU GDP. In past crises, the social economy has proven more resilient than conventional for-profit models, possibly due to its democratic governance model and more risk-averse nature. However, certain vulnerabilities remain in the ecosystem as demonstrated by the Covid-19 crisis, including limited security liquidity and recapitalisation options and a lack of digital agility.

The European Monitor of Industrial Ecosystems (EMI) project has produced its first yearly report on the Proximity and Social Economy ecosystem, highlighting data on its progress in terms of its green and digital transition across several dimensions, including industrial performance, environmental impact, technology generation and uptake, start-up trends, investments and funding, and skills.

The data collected and used for this report is also shared in the data package below, relating to the abovementioned dimensions. Wherever possible, the data package allows for time series analyses, as well as comparisons among industrial ecosystems, Member States, and between the EU and other major economies such as the US and China.

Overview

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Download the data package