Leonardo Cunha
Leadership | Entrepreneurship | Management | Planning | Strategy | Writing for Finance | Development finance expert | International speaker
nmental, and community well-being (European Economic and Social Committee, 2017).
A critical relationship emerges between the vitality of the social economy and the construction of active societies—those characterised by citizen engagement, participatory governance, social innovation, and collective resilience. However, despite their transformative potential, both the social economy and the activation of societies face significant challenges that require nuanced analysis and strategic action.
One of the principal challenges lies in the persistent under-recognition of the social economy within national economic frameworks. Traditional economic indicators, focused almost exclusively on GDP growth and financial profitability, often fail to capture the value created through solidarity, empowerment, and social cohesion. This under-visibility leads to systemic disadvantages in areas such as funding access, legal recognition, and influence over public policies (OECD, 2023).
Another critical challenge is the sustainability of social economy organisations themselves. While driven by noble missions, many of these organisations struggle with limited financial resources, human capital shortages, and the demands of professionalisation in increasingly competitive and digitalised environments. Moreover, maintaining democratic governance structures and member participation as organisations scale up can be complex, potentially diluting their original social purpose.
At the same time, important opportunities are arising. The growing global awareness of the need for alternative economic models aligned with the Sustainable Development Goals (SDGs) has created a more favourable environment for the social economy to thrive. Institutions such as the United Nations and the European Union have explicitly recognised the social economy as a key player in the transition to more resilient, inclusive, and sustainable societies (United Nations, 2023).
Technological innovation also offers significant opportunities. Digital platforms can facilitate new forms of cooperative organisation, expand access to markets, and improve transparency and governance within social economy entities. Moreover, the digitalisation of participation processes offers tools to strengthen active citizenship and community involvement, crucial elements for vibrant democracies.
Education and capacity building are another essential frontier. Fostering an entrepreneurial culture based on solidarity values, training leaders for social innovation, and integrating the social economy into formal education curricula are strategies capable of reinforcing the impact and sustainability of social economy organisations, while simultaneously nurturing more active and responsible societies.
The social economy and active societies represent interconnected pillars for addressing the complex challenges of the 21st century. Unlocking their full potential demands a combination of political recognition, investment in capacity building, innovation in organisational models, and the strengthening of a culture of participation. Rather than being peripheral actors, social economy organisations and active citizens should be recognised as essential architects of a more equitable, democratic, and sustainable future.
References
European Economic and Social Committee. (2017). The Social Economy in the European Union.
OECD (2023). Beyond GDP: Measuring What Counts for Economic and Social Performance.
United Nations. (2023). Resolution on Promoting the Social and Solidarity Economy for Sustainable Development.
