Social Economy in Europe: Sweden
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 Sweden relates to 2021 (CIRIEC; Euricse; European Innovation Council and SMEs Executive Agency (European Commission); Spatial Foresight, 2024[2]), except data on CSOs’ total output (relating to 2020) (OECD, 2023[3]) and the involvement with any social economy organisation as a volunteer relating to 2020-2025 (European Commission, 2025[4]).
In Sweden, there is no specific legal framework on social economy. However, there are specific laws on social economy entities, namely the Economic Associations Act (1987, revised in 2018), the Foundations Act (1994) and the Registration of idea-driven organisations Act (2022).
Institutions
There is no dedicated ministry for social economy policy. However, various ministries work collaboratively to create a supportive framework for social economy entities, such as co-operatives (with a focus on social co-operatives), foundations, civil society organisations, and, more recently, social enterprises. The Ministry of Climate and Enterprise, through its affiliated public authorities like the Swedish Agency for Economic and Regional Growth and the Swedish Innovation Agency, is particularly committed to fostering an environment that encourages this support (OECD, 2023[3]). There are also other government agencies, such as the Public Employment Agency, the Swedish Agency for Youth and Civil Society, and the Legal, Financial, and Administrative Services Agency, that administer useful services for the social economy.
Competence
Sweden does not have a dedicated national framework law, but the social economy is supported through broader policies on specific entities such as social enterprises, co-operatives, and civil society. The “Strategy for social enterprises – a sustainable society through social enterprise and social innovation” defines the characteristics of social enterprises, regardless of legal form (Government of Sweden, 2018[5]). Some specific legislation on social economy entities includes the Economic Associations Act (1987, revised in 2018) and the Foundations Act (1994).
Since 2023, “idea-based organisations” active in publicly funded welfare activities have been able to register in a special register. The register aims to enhance visibility and distinguish non-profit and civil society organisations that are driven by a social mission. It is managed by the Legal, Financial, and Administrative Services Agency. (Kammarkollegiet, 2023[6]). Additionally, the Swedish Procurement Authority promotes “idea-driven public partnerships,” which are collaborations between the public sector and innovation-oriented sectors aimed at achieving specific societal benefits (National Agency for Public Procurement, n.d.[7]).
A new National Strategy for Social Enterprise was launched in 2018. The strategy includes measures on access to finance, increased visibility, and cross-sector collaboration, with a particular focus on enhancing support for Work Integration Social Enterprises (WISEs). It is implemented by the Swedish Agency for Economic and Regional Growth in conjunction with the Public Employment Service, which operates under the Ministry of Labour.
Some national agencies have begun to provide social innovation funding as well as to administer EU structural funds or ESF+ funding. The Swedish Agency for Economic and Regional Growth (Tillväxtverket) and the Swedish Innovation Agency (Vinnova) are leading the provision of direct funding for social economy entities (Vinnova, 2024[8]). Vinnova provides partial funding for organisations with social benefits and has clear rules for what its funding covers (“eligible costs”). The Innovative Impact Startups programme and the call for civil society's innovative solutions for a sustainable society offer targeted funding to innovative social enterprises (Vinnova, 2022[9]; Vinnova, 2021[10]).
The Swedish Agency for Economic and Regional Growth (Tillväxtverket) oversees two EU funds: the European Regional Development Fund (ERDF) and the Just Transition Fund. For the 2021-2027 programming period, these funds do not have specific thematic focus areas related to the social economy or innovation. In addition, the agency manages the EU programme “Interreg Öresund-Kattegat-Skagerrak,” which is allocated EUR 140 million to support cross-border projects aimed at addressing societal challenges in southern Scandinavia during the same period (Tillväxtverket, n.d.[11]).
A distinctive Swedish funding mechanism is derived from unclaimed inheritances. The Inheritance Fund (Allmänna arvsfonden) provides support to non-profit organisations and voluntary associations that aim to test innovative approaches in activities for children, youth, the elderly, and people with disabilities. The fund is managed by the Legal, Financial and Administrative Services Agency and the Swedish Inheritance Fund Commission, under the jurisdiction of the Ministry of Health and Social Affairs.
Institutions
Sweden is a unitary country with a decentralised system of public administration. It has 21 regions (regional councils) and 290 municipalities, which have significant autonomy in areas such as healthcare, education, and local development (European Committee of the Regions, n.d.[12]).
There is no designated body at the regional level responsible for social economy policy. Regions such as Skåne, Västra Götaland, Jönköping County and Östergötland have included social innovation, social entrepreneurship, and civil society collaboration as priorities in their development strategies.
Competence
Several regions have integrated the concept of innovation into regional development plans. Skåne's regional development strategy, "Det öppna Skåne 2030" (The Open Skåne 2030) emphasises social sustainability and the importance of collaboration with civil society. It highlights the need for inclusive development and encourages co-operation among various societal actors, including non-profit organisations and community groups. The Regional Development Strategy for Västra Götaland 2021–2030 focuses on transitioning to a more sustainable and competitive society. The strategy suggests that “social innovation is vital in the transition to a sustainable society” and includes a heavy focus on fostering entrepreneurship (Region Västra Götaland, 2021[13]). Jönköping County’s 2020-2035 development strategy includes aims to “strengthen industry and the public sector’s capacity for innovation and change” and to “work actively to ensure the development of the business sector driven by the principle of sustainability” (Jönköping County, 2020[14]).
Some regions are also partners in broader European initiatives to develop local support for the social economy. Region Östergötland is a partner in the Paths for Rural Innovation (PARI), which aims to develop the Clusters for Social and Ecological Innovation (CSEIs).
Coompanion Sweden is active at the regional level and an important partner for many regional bodies. It federates 25 independent regional organisations that are owned and governed locally, which work to promote co-operative and social enterprise development. It is co-financed by the Swedish state through the Swedish Agency for Economic and Regional Development, as well as regional and municipal partners. It is through Coompanion and associated organisations that regions and municipalities can allocate operating grants and financial resources to civil society entities.
Institutions
Municipal institutions do not have a dedicated mandate for the social economy. However, some municipalities support the social economy. The municipalities of Göteborg, Norrköping, Umeå and Uppsala have supported social enterprises through social investment schemes.
Competence
Some municipalities are very active, especially in social investing, such as the social investment fund initiatives by the municipalities of Umeå and Norrköping. In 2010, Umeå Municipality provided full funding to a jobs’ initiative providing full pay for young people, and Norrköping Municipality focused on social investment. These funds were primarily financed through budget surpluses and profits generated by municipally owned companies, to address social and economic exclusion and reduce youth unemployment. Since then, other social investment funds have been established in Örebro and Sundsvall municipalities and the regions of Västra Götalandsregionen, Blekinge and Gävleborg (VIVE, 2023[15]; Källbom, 2014[16]).
The Gothenburg Business Region and Uppsala Municipality provide support to the regional branches of Microfund (Mikrofonden), Microfund West and Microfund Uppsala. Microfund is a venture capital co-operative for the civil society and co-operative sector. Both municipalities promote social entrepreneurship by investing in capital for loans and financial instruments for social enterprises via these regional microfunds (Microfund, n.d.[17]).
Across multiple public authorities and/or levels of government
There is currently no co-ordination mechanism in Sweden to oversee social economy policy across the different levels of governance in Sweden.
With social economy representatives
Coompanion Sweden is a national umbrella organisation with over 1 000 members in the form of organisations, co-operatives, social enterprises, study associations and public actors. It functions more than merely an advocacy organisation for social economy entities. The organisation is involved in several projects, including training programs for civil society contributors, such as “Agencyt+,” “2030Biz,” and “ASF Akademin”, as well as initiatives to map current stakeholders and activities, like “Empowerment+” and “Mesmer+.” Additionally, it has targeted initiatives focused on supporting women-led organisations and migrant entrepreneurs (Coompanion, n.d.[18]).
Coompanion collaborates with a wide variety of public and private stakeholders. The organisation has contributed to regional development strategies (e.g. Jönköping County’s) and is funded by the Swedish Agency for Economic and Regional Development. For its projects, Coompanion collaborates with other key civil society stakeholders. These include ABF, an adult education association and IF Metall, atrade union representing industrial and manufacturing workers. Coompanion also works with Hela Sverige ska leva, a membership-based non-profit organisation supporting local development groups, as well as CSR Sweden, a business network focused on corporate social responsibility.
Organisations representing the different interests of social economy entities engage in advocacy activities. Skoopi, the organisation representing work-integration social enterprises, provides consultation services to its members and has held meetings with the Ministry of Labour to defend their specific interests (Skoopi, 2023[19]). The Social Entrepreneurship Forum is a non-profit organisation that supports social entrepreneurs. They have developed their activities through support of Vinnova (Social Entrepreneurship Forum, 2018[20]).
Social enterprises benefit from funding support provided by public agencies. For instance, Aktivitetshuset Aktus is a social enterprise dedicated to supporting individuals from disadvantaged backgrounds through work integration initiatives. The enterprise receives funding from the Swedish Inheritance Fund and the Swedish ESF council. In addition to its social support and vocational training programmes, it operates across multiple sectors, including construction, gardening and forestry (European Union, 2019[21]).
Several organisations act regionally to bring together public, private and civil society stakeholders through different activities. For example, the Forum for Social Innovation Sweden is a national knowledge and collaboration platform for social innovation, the culmination of several universities from across the country. It hosts annual conferences, webinars and events which can include regional partners but otherwise its activities are primarily focused on knowledge sharing, awards and awareness (Meeting Place Social Innovation (MSI), 2024[22]). The Partnership for Social Innovation (PSI) is a network to combat social problems and societal exclusion based in Örebro County (Region Örebro län, 2023[23]). It provides guidance and training and boasts a wide variety of partner organisations and agencies.
Note: An OECD survey on institutional arrangements circulated in 2024 with national and regional social economy representatives contributed to the findings of this country note.
Support from the public sector
In 2023, the Swedish government introduced Act 2022:900, a formal register for idea-driven organisations to increase the visibility of non-profit social enterprises in public procurement and welfare contracts. This register helps social enterprises distinguish themselves when competing for government-funded service contracts (European Commission, 2025[24]).
Other public agencies support and promote the social economy. For instance, the Swedish Public Employment Service oversees public employment services and contracts with both for-profit and non-profit providers. The Swedish Agency for Youth and Civil Society (MUCF) promotes youth and civil society policies by producing and disseminating knowledge, collaborating with cross-sector actors, and distributing grants. In late 2024, the Swedish government provided the MUCF with EUR 8.9 million in funding to distribute in 2025. These funds support organisations working with disadvantaged groups, co-ordinating volunteers, and aiming to strengthen civil society engagement through leadership training and mentoring programmes (Swedish Government, 2024[25]).
National agencies continue to encourage social innovation. For example, the European Social Fund+ (ESF+) has funded Regional Competence Centres for social innovation (six hubs across Sweden) aimed at cross-sector collaboration. National knowledge bodies also play a role. Mötesplats Social Innovation (MSI) was appointed an ESF+ support function and received EUR 1.34 million (2022–25) to develop a National Competence Centre for Social Innovation, working with the Swedish ESF Council to promote effective social innovation nationwide (Swedish ESF Council, 2022[26]).
Support from the private sector
Private organisations provide advocacy services, deliver training and education programmes, offer advisory services and promote awareness of social economy entities. The Centre for Social Entrepreneurship (CSES), Sweden’s first social incubator, supports the development of social enterprises by stimulating the emergence of new companies and organisations that solve societal problems. It also provides advice and training programmes to social and cultural entrepreneurs. The Social Entrepreneurship Forum strengthens the ecosystem for social entrepreneurs by raising awareness, advocating for better opportunities, and fostering innovation through training courses at national and international levels. The Forum also serves as a collaborative platform, connecting changemakers, organisations and other stakeholders (Social Entrepreneurship Forum, n.d.[27]).
Renowned organisations that aim to stimulate the entrepreneurial ecosystem also actively support the social economy. Nyföretagar Centrum is a leading organisation dedicated to fostering new, viable businesses. Its mission is to promote entrepreneurship and contribute to the creation of sustainable companies. It is structured as a network of local centres, each of which is supported by regional businesses. It currently operates in over 220 municipalities. Nyföretagar Centrum offers aspiring entrepreneurs cost-free, confidential, and personalised guidance, providing access to a unique network of local business leaders and tailored support services. While not exclusively focused on social enterprises, it extends its support to them, as well as to other types of businesses (NyföretagarCentrum, n.d.[28]).
The private sector also offers financial support to social economy entities in the form of loans, venture capital, micro-investments and grants. Almi, for instance, has 16 regional subsidiaries across Sweden and promotes competitiveness among SMEs and entrepreneurial activity by providing loans and venture capital. It also provides free capacity-building services, including training courses, workshops, webinars, as well as guidance (Almi, n.d.[29]). Mikrofonden is Sweden’s largest social investor for micro-investments, targeting co-operatives and non-profit organisations. With a focus on social benefit and democratic governance, any profit surplus is reinvested in the organisation (Mikrofonden, n.d.[30]).
Corporate philanthropy has recently mobilised new support schemes for social economy entities. In 2024, IKEA’s Social Entrepreneurship arm partnered with the non-profit Reach for Change to launch “Everyone’s Business”, a three-year accelerator for social enterprises in Sweden. This programme aims to select 22 social entrepreneurs (in two cohorts) and provide them with tailored coaching, networks, mentoring and EUR 27 000 grants, explicitly aiming to embed inclusion and sustainability in Swedish entrepreneurship (Reach for Change, 2024[31]).
Strategies, plans and legal frameworks
Regions and municipalities integrate social economy into their action plans and development initiatives, recognising its role in promoting sustainable growth and social innovation. Örebro County has incorporated lessons from the Interreg RaiSE1 project into its policy framework. Two significant policies – the Regional Development Strategy Örebro County (2018-30) and the Policy for Civil Society and Social Economy – recognise the social economy and social enterprises as key drivers of regional growth and civil society development. The former emphasises co-funding future projects and sets objectives for strengthening the social economy, with a focus on work-integrative social enterprises and socially responsible procurement. Meanwhile, the latter addresses financing, public procurement, social impact measurement, and internationalisation (RaiSE Interreg Europe, 2019[32]) (Interreg Europe, 2021[33]).
Support from the public sector
The Swedish Association of Local Authorities and Regions (SALAR) has supported social economy practitioners. In 2021, it published guidance (a handbook and online resources) to help local governments buy services from social enterprises (Swedish Association of Local Authorities and Regions, 2021[34]). During 2021–22, it also ran an ESF-funded development network involving 12 municipalities, which produced a handbook and training to help municipalities integrate social enterprises into welfare services (Swedish Association of Local Authorities and Regions, 2024[35]). In addition, platforms like the National Body for Dialogue (NOD) provide ongoing forums for government–civil society engagement on social innovation, ensuring public-sector policy makers hear social economy perspectives (European Commission, 2025[24]).
European and national funds are also being used to build social innovation capacity. For example, the ESF+ social innovation strand (2021–27) is financing several Regional Competence Centres for social innovation (e.g. in Malmö, Örebro, Södertörn, etc.), to serve as hubs for cross-sector solutions to local challenges. At least six such centres were launched in 2024, often led by universities and local authorities (Södertörns University, 2025[36]).
Support from the private sector
Local private-sector networks and incubators are instrumental in supporting social entrepreneurs. For example, Impact Hub Stockholm (part of a global network of “Impact Hubs”) runs an incubator and co-working community in Stockholm dedicated to sustainable innovation. It explicitly connects social entrepreneurs with corporate partners and public agencies to “build a more just and sustainable society” (Impact Hub Stockholm, 2025[37]). In southern Sweden, cross-sector platforms have emerged such as the Skåne Civil-Sector Network which brings together NGOs, businesses and local government. Each year it co-organises a regional forum with Region Skåne and the County Administration Board to share best practices and promote social entrepreneurship in the region. Likewise, in Stockholm’s suburbs, a new Social Innovation Hub in Södertörn has been funded via ESF. Led by Södertörn University and the Social Entrepreneurship Forum, this hub’s consortium includes private partners (real-estate firm Fabege and incubator Changers Hub) working with municipalities to tackle issues like youth unemployment through social enterprise initiatives (Social Entrepreneurship Forum, 2025[38]).
Definition of public interest
Non-profit associations (ideella föreningar) and foundations (stiftelser) can be eligible for preferential tax treatment if they promote one or more public benefit purposes. According to the Income Tax Act (Inkomstskattelagen, chapter 7, section 4), these include sports, culture, environmental protection, care for children and youth, political activity, religious activities, healthcare, social assistance, Sweden’s defence and emergency preparedness, education, scientific research, or other equivalent activities (Ministry of Finance, 1999[39]). Their purpose must not be limited to the economic interests of certain families, members, or determined individuals.
Economic activities
Non-profit associations can engage in economic activities as long as the income derived from them is not distributed to members and is aligned with the organisation’s purpose (European Commission, 2023[40]).
If the assets of non-profit entities exceed SEK 1.5 million (around EUR 134 000), or if they conduct business or control one or more subsidiary organisations, they are obliged to maintain accounts and make the reports public (European Commission, 2023[40]).
Similarly, according to the Foundation Act (1994:1220) (Ministry of Justice, 1994[44]), foundations with assets exceeding SEK 1.5 million (around EUR 134 000), as of January 2025, those conducting business, or those established by the state or municipalities must submit an annual report to the Country Administrative Board (Philea, 2024[41]). All foundations must submit an annual tax declaration to the Swedish Tax Agency. Reports are publicly available.
Annual reports of larger foundations must include an administrative report, an income statement, a balance sheet, and notes. Anyone can request access to a foundation’s annual report, with smaller foundations only needing to submit financial summaries upon formal request. All foundations must have at least one auditor (Philea, 2024[41]).
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← 1. RaiSE project (2017-21) has aimed aims to enhance competitiveness of social enterprises by improving business support policies in participating regions. More information: https://projects2014-2020.interregeurope.eu/raise.
← 2. Non-profit associations are exempt from VAT if they do not need to pay income tax or have an annual turnover below SEK 120 000 (around EUR 10 760) (Skatteverket, n.d.[42]). No specific VAT refund scheme exists for the irrecoverable VAT costs of public-benefit foundations. VAT applies depending on the nature of the foundation’s activities (Philea, 2024[41]).