The social economy has gained prominence in EU and OECD countries as a driver of job creation (accounting for 6.3% of the EU workforce) and economic activity with social impact. Over the past decade, it has been increasingly recognised as a major contributor to economic development, employment, entrepreneurship, social inclusion, the green and digital transition, democratic participation and community resilience at both the national and subnational levels. This momentum is growing worldwide, with almost all EU and OECD countries having adopted at least one law, policy, strategy or plan to recognise, promote and harness the potential of the social economy.
Social economy organisations are pioneers and vehicles for social innovation, often developing new ways to combine economic and social value that later become mainstream. Examples of this include ethical finance, organic food movements and circular economy practices, all of which were spearheaded by the social economy.
However, despite their significant contributions, social economy entities often struggle with visibility, funding, recognition and scaling. Their hybrid models, which typically have social aims, sometimes combined with environmental objectives, can fall between the cracks of conventional regulatory and support systems, particularly for entities with market-based approaches and activities.
Recognising its strategic importance, the European Union and the OECD have been working closely together to create an environment that can further strengthen the impact of the social economy. This includes efforts to develop and reinforce legal frameworks, adopt robust approaches to social impact measurement, improve access to markets and finance and build sector-specific expertise to integrate the social economy more effectively into mainstream economic and social policies. In addition, the European Union adopted the Action Plan on the Social Economy in 2021 and the Council recommendation on developing social economy framework conditions in 2023, and, in 2022 the OECD adopted the Recommendation on the Social and Solidarity Economy and Social Innovation.
Building on decades of successful and fruitful collaboration, the EU and the OECD have now developed this guide to clarify the role of labels for the social economy, which, depending on national contexts, can include legal statuses, as well as public and private labels for organisations, their products or financial instruments. It offers practical guidance for public authorities and private label managers on how to design, implement and evaluate labelling schemes that promote trust, visibility and quality. The broader goal of this publication is to expand the impact of the social economy—bringing its values and benefits to more people, communities and businesses across Europe and beyond.
Amal Chevreau,
Head of the Social Economy and Innovation Unit,
OECD Centre for Entrepreneurship, SMEs, Regions and Cities
Brigitte Fellahi-Brognaux,
Head of Unit for Inclusive and Social Entrepreneurship,
Directorate-General for Employment, Social Affairs and Inclusion, European Commission