What is social economy?

Social economy is a promise that entrepreneurs can do business with a social objective.

Training and know-how on social economy

Need help to start a social economy enterprise?

We provide know-how and consultancy on legal steps and documentation required for the establishment and management of social enterprises for public institutions, private organizations and individuals.

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Ongoing social economy activity

Through ”Progressio - a project in support of the social economy” we provided EU-funded grants also know as ”minimis aid” for the establishment of social enterprises.

The project is initiated by the Association "Institute for Social Policies" in partnership with the Ruhama Foundation and IPA S.A. SMIS Code 2014+: 127419. Project co-financed from the European Social Fund through the Human Capital Operational Program 2014-2020.

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Placing economy at the service of communities

The social economy brings together two concepts that are traditionally opposed. The innovation lays in doing business with a social mission.

Socio-economic empowerment combines classic business approaches with social actions to bridge the gap between local economic prosperity and communities' social needs.

Social economy entities

authorized protected units

minimum 30% employees and 50% of the working time are attributed to people with disabilitie

social insertion enterprises

30% of employees to be from vulnerable groups

social enterprises

90% of profit reinvested

In Romania, social economy enterprises are defined by Law no. 219/2015 on the social economy

The triple bottomline of social economy

The fundamental principle of the social economy is working for the common good.

This is why social economy enterprises follow an innovative and hybrid organisational model.

It's visionary from conception because of the triple bottom line, which is focusing its impact on people, the environment, and the local economy.

How to measure impact?

Measuring the impact of the social economy could enable a new form of “entrepreneurial philanthropy”, attracting new investors and markets for solving social problems.

Social value

Though largely undocumented and undervalued social value is crucial to the functioning of a society and it's often created by civic society.

Economic value

Economic value is about deriving a return on investment and a benefit from sold goods or services.

Socio-economic value

Through social economy, we are now able to distinguish value innovatively, understanding how mutual benefit empowers communities while generating income as well as lowering public service costs in a number of ways.

Typologies of social enterprises

Based on their focus on sociality, innovation and market orientation, social enterprises can take various forms

integrated = economic activity produces social results

reinterpreted = an existing non-profit increases its income through economic activity

complementary = income from commercial activity subsidizes including the social mission of the related non-profit organization