In May 2022, the World Economic Forum, in collaboration with Deloitte, published a groundbreaking report, “Unlocking the Social Economy,” which offers a deep dive into the transformative potential of the social economy.

This insightful document showcases how the social economy, fueled by social innovation, stands as a formidable force in addressing some of the most pressing global development challenges, while simultaneously contributing to job creation and sustained economic activity.

The Essence of the Social Economy

The social economy represents a significant portion of the global GDP and employs millions worldwide, evidencing its capability to foster inclusive and resilient economic growth.

Comprising a diverse set of actors, including social enterprises, cooperatives, and non-profits, the social economy operates across various industries, from education and healthcare to agriculture and technology.

What sets the social economy apart is its fundamental principle of placing societal and environmental considerations at the forefront of economic activity, encapsulating a vision of “purpose before profit.”

The Dual Shifts: Advancing and Recalibrating

The report identifies two critical shifts necessary to unlock the full potential of the social economy.

1. The first shift entails advancing the social economy itself through the development of a supportive ecosystem. This includes recognizing the social economy, creating incentives for funding and investment, expanding education and research, making procurement channels more inclusive, and systematically measuring the sector’s social and environmental impacts.
2. The second shift aims at recalibrating the wider mainstream economy to adopt a more values-driven approach. By leveraging the innovative and inclusive practices of the social economy, the mainstream economy can transition towards models that prioritize social justice and environmental sustainability. This transformative vision requires enhanced accountability, the adoption of comprehensive taxonomies for social reporting, and support for participatory business models.

Strengthening the Ecosystem through Collaboration

For the social economy to thrive, a collaborative effort across various sectors is essential.

Governments play a crucial role in creating a favorable policy environment, while businesses can incorporate social economy principles to achieve sustainable and inclusive growth.

Civil society and multilateral organizations, alongside social investors and academia, contribute to the ecosystem by advocating for the social economy, providing financial support, and conducting research to further understand and promote the sector.

The Impact of Public Policies and European Initiatives

European Commissioner for Jobs and Social Rights, Nicolas Schmit, highlights the critical role of the social economy in the European context, especially in light of challenges such as the COVID-19 pandemic and the war in Ukraine. The social economy’s ability to mobilize rapidly in response to crises underscores its importance in building democratic, cohesive societies. The European Commission’s recognition of the social economy as a key tool for achieving a more sustainable, inclusive, and resilient economy is a testament to its growing significance.

The Path Forward

The “Unlocking the Social Economy” report is not just a call to action for policymakers, business leaders, and social economy actors; it is an invitation to all stakeholders to engage in a dialogue that shapes the future agenda on the social economy.

By addressing the outlined policy priorities and fostering a collaborative environment, the social economy can drive an inclusive digital transition and a green economy, contributing to the achievement of the Sustainable Development Goals and beyond.

As we look to the future, the social economy presents a unique opportunity to redefine our economic paradigms, making them more inclusive, sustainable, and resilient.

This report serves as a critical resource for those interested in exploring and contributing to the evolution of the social economy. Let us embrace the lessons and insights it offers, and work together to unlock the full potential of the social economy for the betterment of our global community.

Unlocking the Social Economy Towards an Inclusive and Resilient Society