Social Economy in Europe: Austria
Table of contents
Note: The data presented in this table derive from the OECD country fact sheets and the European Commission DG GROW studies. Variations in scope, methodology and most recent available years may lead to differences in the headline figures across countries and with other sources.
Source: Data for Austria relates to 2021 (CIRIEC; Euricse; European Innovation Council and SMEs Executive Agency (European Commission); Spatial Foresight, 2024[1]), except data on employment in social services (relating to 2020) and gross value added of SSE (relating to 2020) (OECD CFS, 2023[2]). The higher estimate of the number of volunteers in Austria is 3.7 million (Bundesministerium für Soziales, 2023[3]).
Austria does not have a single law defining or governing the social economy as a whole; instead, relevant organisations are regulated through distinct legal frameworks. Associations are governed by the Federal Act on Associations (Vereinsgesetz 2002), co-operatives by the Co-operative Law (Genossenschaftsgesetz 1873), and foundations by federal provisions complemented by Länder regulations. Public-benefit status, which determines access to preferential tax treatment, is defined by the Federal Tax Code (Bundesabgabenordnung, §§34-47). In addition, volunteering is supported under the Voluntary Engagement Act (Freiwilligengesetz), which provides the framework for various forms of civic service.
Institutions
Public support is provided to different types of organisations within the social economy, including social enterprises. The Federal Ministry of Labour, Social Affairs, Health, Care and Consumer Protection (BMSGPK) is responsible for developing policies and providing support for social enterprises. Additionally, support is available for the non-profit sector through funding calls, public procurement and projects. Other federal institutions, such as the Austrian Promotional Bank (Austria Wirtschaftsservice Gesellschaft, AWS), also contribute to this support network. The Federal Ministry of Economy, Energy and Tourism manages funding programmes and initiatives for social enterprises, including facilitating access to impact investors and grants aimed at fostering social entrepreneurship. Meanwhile, the Ministry of Interior oversees the registration process for non-governmental organisations (NGOs).
Competence
Initiatives are led by different ministries based on their respective competencies, in the absence of a comprehensive national law or unified strategy for the social economy. Federal agencies actively promote certification to support social enterprises. The Ministry of Economy, Energy and Tourism (formerly the Federal Ministry of Labour and Economy, BMAW) issues the Verified Social Label (VSE), which is managed by AWS and registered in the company register maintained by the Austrian Federal Economic Chamber (Wirtschaftskammer Österreich, WKO). Additionally, Austria offers the Donation Quality Seal (Spendengütesiegel, OSGS), an independent and voluntary certification for non-profit organisations. Established in 2001 through a collaboration among six Austrian umbrella organisations for non-profits and the Chamber of Tax Advisors and Public Accountants (KSW), the seal aims to enhance transparency and trust in charitable activities.
Policy action is focused on reducing poverty and promoting work integration. The Austrian Government Plan for 2020-2024 highlights the importance of extending financial resources to social enterprises and stresses the need for collaboration with these organisations to address poverty. Additionally, there are federal guidelines on work integration enterprises, which are recognised as institutions dedicated to the professional integration of persons with disabilities. (BMSGPK, 2004[4]). Social economy organisations (such as Caritas, Hilfswerk Austria, ICRC) are also important partners for the public sector, the care sector, and emergency services (fire brigades, ambulances and mountain rescue organisations).
Existing legal frameworks focus on co-operatives and associations. Two laws regulate activities of these entities: the Co-operative Law (1873) and the Federal Act on Associations (2002). The Federal Ministry of Interior is responsible for the registration of foundations and associations (Fundraiso, 2025[5]; Austrian Federal Government, 2024[6]).
Austria also has a law supporting volunteering – the Voluntary Engagement Act (FreiwG). The law sets out the legal basis and framework conditions for voluntary work in Austria. It also regulates the voluntary social year, the voluntary environmental protection year, commemorative service and peace and social service abroad (Republic of Austria, 2012[7]).
Institutions
Austria is a federal country with 9 provincial parliaments. They have legislative and policy competencies and can therefore adopt laws and sectoral strategies. However, there are no specific laws, frameworks, projects or funds at the subnational level which specifically target the social economy (Austrian Federal Government, 2024[6]).
Competence
Some regional governments implement initiatives or programmes on social enterprises, innovation or inclusion. In Upper Austria, for example, the regional government provides support to traditional enterprises and social organisations through the “Fliegender Fisch” prize. This prize recognises and supports projects aimed at the inclusion of persons with disabilities, particularly through employment and training innovation and digitalisation by social organisations (State of Upper Austria, 2025[8]). The Directorate of Social Affairs and Health under the Office of the Upper Austrian State Government oversees the prize. Regional governments also rely on social economy entities for the delivery of social services, such as care services.
Institutions
Municipalities can provide support to the social economy and social innovation, although not through explicit structures or programmes. Some municipal-level organisations, such as the Austrian Association of Cities and Towns, are relevant for the development of policy related to social enterprises but none exist with the primary purpose of social economy co-ordination.
Competence
Municipalities can have dedicated associations or structures that implement programmes on social innovation. The city of Vienna supports social inclusion and innovative projects, in particular through the Vienna Social Fund, which has launched a funding call for social innovation projects (Vienna Social Fund, 2019[9]). The Austrian Association of Cities and Towns represents 255 city members and municipalities. Its primary goal is to advocate for local interests in funding allocations at various levels of government. Additionally, the association facilitates the exchange of experiences through approximately 40 technical committees that explore innovative measures and programmes implemented by towns and communities (Österreichischer Städtebund, n.d.[10]).
Public co-operation and co-ordination on the social economy is very limited. There are various mechanisms for cooperation among public authorities through associations and technical committees. Partnerships exist between governmental authorities and organisations that promote social innovation, economic growth, and entrepreneurship, without a specific focus on the social economy. However, public authorities collaborate directly with social economy entities, especially in the provision of social services such as in the care sector.
Across multiple public authorities and/or levels of government
Some frameworks and mechanisms facilitate co-ordination on specific issues of the social economy. The Association of Public Economy and Community Economy (VÖWG) fosters knowledge exchange and networking among businesses and organisations. In Austria, VÖWG collaborates with various groups, including the Association of Municipal Enterprises, the Austrian Association of Cities, the Austrian Association of Municipalities, the Austrian Trade Union Federation, and the Chamber for Workers and Employees (AK).
Public universities play an important role in encouraging the development of social enterprise and innovation. The campuses involved include FH Campus Vienna, JKU, and the University of Graz. The Vienna University of Economics and Business hosts the Institute for Entrepreneurship and Innovation, as well as the Social Entrepreneurship Centre. Established in 2014, the Centre serves as an academic contact point for social entrepreneurs and key players within the ecosystem. The Centre has developed the Austrian Social Enterprise Monitor (ASEM), which is currently the largest study on social enterprises in Austria. ASEM aims to produce reliable primary data, along with sector- and location-specific analyses. Additionally, some public universities foster partnerships with government bodies and non-governmental organisations, providing connections to global initiatives.
Social economy representatives
Umbrella organisations represent and coordinate social economy entities. The Social Enterprise Network Austria (SENA), established in 2018, serves as an umbrella organisation representing social enterprises. Its mission is to provide a point of contact for social entrepreneurs and create a supportive environment for their activity. SENA aims to raise the visibility of social entrepreneurship at local, regional, and national levels, while also working to reduce barriers that hinder its growth and impact. Additionally, SENA facilitates access to financing for entrepreneurs and disseminates information about social entrepreneurship to mainstream society. Furthermore, the Austrian Federation of Limited-Profit Housing Associations – Audit Association (GBV, n.d.[11]), is responsible for oversight and auditing of limited-profit housing providers. Major welfare organisations co-ordinate their activities and social policy positions through the Federal Working Group of Independent Welfare Organisations (BAG, n.d.[12]). Co-operatives are supported by the Austrian Co-operative Association (ÖGV, n.d.[13]), and mutual insurers are members of the Association of Austrian Insurance Companies (VVO, n.d.[14]), the umbrella organisation representing all private insurance companies operating in Austria. Public-benefit foundations are brought together under the Association for Charitable Foundations (Stiftungen, n.d.[15]), representing foundations and funds working fully or partly for the public good in areas such as education, culture, and environmental protection.
Based in Vienna, Impact Hub has evolved into a leading global network with locations in over 100 cities across 60 countries. It organise the annual Impact Days festival and have initiated the Social Impact Award, which supports young social entrepreneurs in more than 20 countries. Additionally, Impact Hub drives change through partnerships with prominent private and public institutions.
Representative organisations may collaborate with subnational authorities to provide support to social enterprises. The Social Platform of Upper Austria represents social organisations and organises the annual social economy career fair in collaboration with IV Sozialunternehmen (Social Enterprises Association) (Social Platform, 2025[16]). The Association comes together with state authorities as part of particular projects.
AWS and BMWA partner with different organisations to provide different support initiatives for social enterprises, including awards, training and programmes. For example, since 2009, AWS has partnered with Impact Hub, Vienna University of Economics and Business and The Vienna Business Agency alongside others to run the Social Impact Award in Austria, which helps young people to discover the world of social entrepreneurship and to take the first steps to build their own venture. The Impact Hub also partners with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), whose main commissioning partner is the German Federal Ministry for Economic Cooperation and Development (BMZ).
Strategies, plans and legal framework
While Austria does not have a specific legal framework for the social economy, the sector operates under a multifaceted legal landscape that includes co-operatives, associations, public-benefit limited companies, and foundations (Anastasiadis, Gspurning and Lang, 2018[17]). The diversity of legal forms reflects the country’s historical evolution of the social economy, following the Austrian welfare system and social movements.
Austria has taken steps to enhance the visibility and legitimacy of the social economy. Since December 2022, social enterprises have been able to register with the Austria Wirtschaftsservice (AWS), the federal development and financing bank, under the Verified Social Enterprise label (Impact Hub Vienna, n.d.[18]). The certification, implemented by the Economy, Energy and Tourism in co-operation with the Austrian Federal Economic Chamber, requires enterprises to submit impact reports and to demonstrate a clear commitment to social objectives in their statutes or articles. It also increases the visibility and legitimacy of social economy entities by referencing them in national databases.
The government has committed to developing a Social Economy Strategy by the end of 2025, in line with European policy (Vandor et al., 2024[19]). In addition, other policy documents and initiatives address specific aspects related to the social economy, such as the Circular Economy Strategy (Varga, 2024[20]) or Vienna 2030 (City of Vienna, 2019[21]), which considers social innovation as a key solution for achieving a high quality of life.
Support from the public sector
The Federal Ministry of Social Affairs, Health, Care and Consumer Protection is responsible for most social economy measures. Other ministries also work together to influence and support various aspects of the sector through their respective policies and programmes, such as the Federal Ministry of Economy, Energy and Tourism. Although the AWS does not mention the social economy in its financial support and advisory services for Austrian businesses, the sector has access to such business support initiatives.
Support from the private sector
Well-established umbrella organisations actively support social economy entities. The Social Entrepreneurship Network Austria (SENA) is a representative body for enterprises with a positive social impact. It connects different stakeholders of the entrepreneurial ecosystem and also offers training programmes to support social entrepreneurs. In particular, the Social Impact Academy provides social entrepreneurs with training in social business modelling, fundraising, impact management and legal aspects. In addition, Arbeit Plus is a nationwide network of nine national organisations with 200 members operating in almost 500 locations in Austria. It provides an online database to help individuals and organisations find social enterprise services and products.
Co-operatives rely on the support of the Österreichischer Genossenschaftsverband (ÖGV), which represents Volksbanken and commercial goods and services co-operatives throughout the country. The ÖGV provides legal and business advice to its members and represents their interests at national and European level. It also supports the development of new co-operatives.
Private actors actively contribute to the recognition and institutionalisation of social enterprises by establishing certification labels. For example, the Seal of Quality for Social Enterprises is awarded by Arbeit Plus, in collaboration with Quality Austria. To obtain the label, social enterprises undergo an external assessment of their compliance with social, organisational and economic standards. The label is funded by the Public Employment Service Austria and recognised at European level by the European Foundation for Quality Management. It was created specifically for social enterprises with a focus on social and professional integration (Quality Austria, 2022[22]). This initiative defines clear standards, strengthens credibility and promotes best practices within the sector.
There are many incubators specifically dedicated to the social economy, such as the international Impact Hub network operating in Vienna and Tyrol. Other incubators do not focus exclusively on social economy but support early-stage entrepreneurs in developing innovative business ideas. The AWS First Incubator, for example, provides up to EUR 55 000 in funding, as well as coaching, mentoring, workshops, and networking opportunities.
Private foundations actively fund and invest in social economy entities. The Sinnstifter is a donor-supported association founded in 2010 that provides funding for innovative, scalable projects, that can then be sustained or taken over by the public sector. Another example is the ERSTE Foundation, which promotes social development, culture and European integration. One notable project is the NGO Academy, which provides capacity building for civil society organisations.
Strategies, plans and legal framework
Although regions and municipalities do not have tailored strategic documents for the social economy, some broader initiatives foster the area at the local level. For example, Styria’s Economic Strategy 2030 highlights the importance of social businesses in its core strategy on "Entrepreneurship & Growth of Young Companies". It also recognises the role of social businesses in the local economy by combining marketable solutions and social innovation (Das Land Steiermark, 2022[23]).
Support from the public sector
Some regional and municipal development agencies offer programmes open to social enterprises, such as funding opportunities for projects with social impact. Cities can also implement smaller-scale initiatives, such as the city of Graz, which has launched a crowdfunding campaign exclusively for impact-oriented start-ups and organisations, in collaboration with Social Business Hub Styria (SBHS) and Crowdstrudel. The city aims to fund 10 projects per year in different business sectors (City of Graz, n.d.[24]).
Support from the private sector
A vibrant private sector operates at regional and municipal levels to drive economic and social development. The Social Platform of Upper Austria, for instance, is a regional platform supporting social economy entities, bringing together more than 44 social economy organisations and focusing on networking, information dissemination and advocacy. It organises networking events to promote coordination and collaboration with cross-sectoral actors. The network's advocacy work also aims to strengthen the Austrian social economy ecosystem and influence social policy development.
Incubation and training programmes, as well as capacity building initiatives are important support at subnational level. For example, Social Business Hub Styria is a well-known social business incubator and network based in Graz (Styria region), which supports individuals and organisations tackling societal challenges through entrepreneurial solutions. In addition to an incubation programme with grants, the Hub offers workshops and coaching services. Social Innovation Lab Carinthia is a joint initiative of the University of Klagenfurt and the Province of Carinthia that aims to address social and environmental challenges in the Carinthian region through social innovation. Open to students from the age of 16, companies, NGOs, associations and public authorities’ representatives, it offers a Social Innovation Training Programme for the most promising ideas to turn them into viable business opportunities.
Definition of public interest
The Federal Tax Code (Bundesabgabenordnung, §§34-47) defines public interests for tax purposes (Republic of Austria, 1998[25]). Entities must pursue one of the following purposes exclusively and directly:
Public-benefit purposes (Gemeinnützige Zwecke): activities in intellectual, cultural, moral, or material fields such the promotion of art and science, health care, child, youth and family welfare, care for the elderly, sick or physically handicapped, physical sports, public housing, schooling, education, popular education, vocational training, monument preservation, nature, animal and cave conservation, local history, preservation of local heritage and combating natural disasters.
Charitable purposes (Mildtätige Zwecke): support for individuals in need.
Religious purposes (Kirchliche Zwecke).
Religious purposes (Kirchliche Zwecke).
Economic activities
Public benefit organisations may engage in economic activities if they are related to the organisation’s purpose and are ancillary. Income from such activities may be exempt from corporate tax if deemed indispensable. Dispensable auxiliary activities are taxable, but entities may be exempt if total taxable profits do not exceed EUR 10 000 per year as of January 2025. Income from unrelated economic activities is taxable according to the Federal Tax Code, section 45(1) (Republic of Austria, 1998[25]).
Entities seeking tax exemptions must provide detailed documentation, including their articles of association, financial records, and proof that they meet the conditions outlined in §§34-47 of the Federal Tax Code (Republic of Austria, 1998[25]). The Austrian tax office evaluates applications to determine eligibility for preferential tax treatment.
References
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← 1. Income from indispensable or dispensable activities is exempt from VAT as long as the association does not intend to make a profit or is not greater than EUR 7 500 per fiscal year. Nevertheless, some associations choose to register for VAT. This is because most of their income usually does not come from economic activities and having a VAT-exempt status does not allow associations to deduct input tax (Mobility Arts & Culture Austria, n.d.[30]).