Definition

The social economy brings together businesses and organizations (co-operatives, non-profit organizations, associations, foundations, etc.) that seek to reconcile economic activity and social equity.

The social economy in 6 points

Purpose

They have a social mission, that is, they ensure that the needs of their members of the community are met.

Management autonomy

They are not under the decision-making control of one or more public bodies.

Democratic management

They provide for rules of democratic governance by members, within which the general principle is that one person = one vote.

Economic Viability

They aspire to economic viability, which means that their activities are carried out in an entrepreneurial logic that their income is sufficient for their operation.

Management of generated surpluses

They provide for rules that prohibit or limit the distribution of surpluses generated by their economic activities (for example, a rebate in proportion to the operations carried out between the member and the company). Surpluses can be reinvested in the business in the community or kept in reserve for future expenses.

Dissolution

In the event of closure, the remainder of their property is transferred to an organization with similar objectives.