Leonardo Cunha

Liderança | Empreendedorismo | Gestão | Planeamento | Estratégia | Escrita para Financiamento | Especialista em financiamento para desenvolvimento | Orador internacional

Publicado em 20 de abr. de 2025

Amid widening global inequalities, environmental degradation, and growing discontent with neoliberal capitalism, the Social and Solidarity Economy (SSE) is gaining ground as a serious contender for economic transformation. Rather than placing capital accumulation at the center, SSE organizations prioritize inclusive, democratic, and sustainable development. Their business models reflect this approach—not as peripheral social responsibility measures, but as fundamentally different frameworks for organizing and governing economic activity.

The International Labour Organization defines the SSE as including “enterprises and organisations—cooperatives, mutual benefit societies, associations, foundations and social enterprises—that produce goods, services and knowledge while pursuing both economic and social aims and fostering solidarity” (ILO, 2023). Typically, these entities feature collective ownership, democratic governance, and a commitment to reinvesting profits in their social missions. As such, they disrupt dominant narratives around value creation, organizational success, and the market’s role in shaping economic life.

One of the core distinguishing features of SSE models is their emphasis on multi-stakeholder governance. Instead of concentrating decision-making in the hands of investors or senior executives, these models actively involve workers, service users, community members, and sometimes even public sector actors (Utting, 2015). This participatory structure embeds a sense of accountability, nurtures trust, and helps organizations stay focused on their mission—even amid competitive pressures.

Financial sustainability in SSE organizations tends to rest on hybrid revenue models. While sales of goods and services remain a staple, many also rely on grants, public procurement contracts, impact-oriented investments, or community-based fundraising (OECD, 2023). This diversified approach not only cushions against financial volatility and shifting donor landscapes but also enables these organizations to align funding with their principles—avoiding financial entanglements that might jeopardize their social or environmental goals.

Evaluating performance in the SSE means going well beyond conventional financial metrics. Tools like social return on investment (SROI), environmental impact assessments, and indices of community wellbeing are commonly used to capture the broader value these organizations generate (Nicholls, 2009). These indicators support internal learning and strategic development while also providing transparent, credible evidence of impact to funders, governments, and the communities they serve.

Technological innovation is becoming increasingly significant across SSE models. Platform cooperatives, for instance, offer a compelling example of how digital infrastructures can be repurposed for collective ownership and fairer value distribution. Unlike mainstream gig platforms that consolidate profits and control, these cooperative models ensure that workers are co-owners of the digital tools they use (Scholz, 2016). This convergence between SSE principles and digital transformation is beginning to reshape the nature of work, consumption, and community dynamics.

Nonetheless, SSE organizations continue to grapple with structural constraints. Existing legal and fiscal systems often fail to reflect the hybrid nature of these entities, forcing them into rigid nonprofit or for-profit categories that don’t fully capture their operations. Access to finance is also a persistent barrier, especially when conventional lenders apply risk models that clash with the long-term, mission-driven focus of SSE enterprises (UNRISD, 2022).

Despite these limitations, SSE actors are far from marginal. According to the OECD, they already account for more than 6% of total employment in several European nations (OECD, 2023). Their role is particularly pronounced in sectors like caregiving, education, culture, and environmental restoration—areas where market failures or the withdrawal of public services have opened space for community-led alternatives.

As global crises continue to intensify, SSE business models are becoming more relevant than ever. They offer not just new organizational forms, but a shift in underlying economic values—towards systems that place people and the planet at their core. Their real contribution lies not only in their outputs, but in how they challenge us to rethink what economic success truly entails.

Looking ahead, the SSE represents more than a fringe alternative—it provides a credible foundation for the just, inclusive, and regenerative economies our world urgently needs.ital infrastructure can be reclaimed for collective ownership and equitable value distribution. In contrast to mainstream gig platforms that centralise profit and control, these cooperative models ensure that workers are co-owners of the platforms they operate (Scholz, 2016). Such innovations signal a growing convergence between SSE principles and digital transformation, reshaping the landscape of work, consumption, and community engagement.

Nevertheless, SSE organizations face significant structural barriers. Many legal and fiscal frameworks remain misaligned with their hybrid nature, often forcing them to choose between nonprofit and for-profit categories that do not fully reflect their operations. Access to finance is another major challenge, particularly when traditional lenders apply risk assessments incompatible with the values and time horizons of SSE enterprises (UNRISD, 2022).

Yet, despite these constraints, the SSE is not peripheral. According to the OECD (2023), SSE organizations already account for over 6% of total employment in some European countries. Their presence is even more pronounced in areas such as care, education, cultural industries, and environmental regeneration—sectors where market failure or public retrenchment has created space for community-led innovation.

As global crises deepen, the relevance of SSE business models is becoming increasingly evident. They represent more than organizational innovations; they embody a normative shift towards economies that serve people and the planet. Their contribution lies not only in what they do, but in how they invite us to reimagine what economic success looks like.

As we look to the future, the SSE offers not an alternative on the margins, but a credible foundation for building the just, inclusive, and regenerative economies the world urgently needs.

References

International Labour Organization. (2023). Decent Work and the Social and Solidarity Economy: International Labour Conference, 111th Session. Geneva: ILO.

Nicholls, J. (2009). We Need to Talk About Value: A Rough Guide to Social Return on Investment. London: The SROI Network.

OECD. (2023). Beyond the Social Enterprise: The Role of the Social and Solidarity Economy in the Circular and Inclusive Economy. Paris: OECD Publishing. https://doi.org/10.1787/0c2b87c2-en

Scholz, T. (2016). Platform Cooperativism: Challenging the Corporate Sharing Economy. New York: Rosa Luxemburg Stiftung.

UNRISD. (2022). Social and Solidarity Economy for the SDGs: Spotlight on the Social Economy in Africa. Geneva: United Nations Research Institute for Social Development.

Utting, P. (2015). Social and Solidarity Economy: Beyond the Fringe. London: Zed Books.