case study | Social Economy in Europe: Towards more inclusive and democratic systems – based on DICES project’s results

Introduction 

The social economy is gaining renewed attention across Europe as societies face deep and persistent challenges related to inequality, social exclusion, and the transformation of welfare systems. In this context, understanding how economic activities can better serve social goals has become increasingly urgent. 

The DICES project (Horizon Europe – Cluster 2 Culture, Creativity and Inclusive Society), implemented by Diesis Network, contributes to this debate by exploring the relationship between the social economy, social inclusion, and economic democracy. It highlights how the social economy can go beyond service provision and play a transformative role in shaping more inclusive and participatory economic systems.

This article, developed by Diesis, builds on DICES findings to provide an overview of the role, diversity, and potential of the social economy in Europe today. 

What do we mean by “social economy”? 

The social economy refers to a broad set of organisations that combine economic activity with a clear social purpose. These include cooperatives, associations, mutuals, foundations and social enterprises. 

What unites them is a shared set of principles: 

• the primacy of people and collective goals over profit  

• democratic or participatory governance  

• the reinvestment of profits to benefit members or society  

  
  

Beyond definitions, the social economy is best understood through its practices: organisations rooted in communities, based on participation, and built around social relationships rather than purely market logic. 

Why does the social economy matter today? 

Across Europe, social exclusion remains a complex and multidimensional challenge. It is not only about lack of income, but about limited access to participation in economic, social, political and cultural life. 

In response to this, social inclusion can be understood as a process that enables individuals and communities to access resources, develop capabilities, and actively participate in society. 

The social economy plays a crucial role in this process. It contributes not only by providing services and employment, but also by reshaping how economic activities are organised. 

Its impact can be understood across four key dimensions: 

• Economic inclusion – access to jobs, income and resources  

• Social inclusion – access to services and social networks  

• Political inclusion – participation in decision-making processes  

• Cultural inclusion – recognition of diverse identities and needs

From participation to economic democracy 

A key insight from DICES is that participation alone is not enough. 

While many social economy organisations are formally democratic, this does not always translate into meaningful influence for members and stakeholders. For this reason, the concept of economic democracy becomes central. 

Economic democracy refers to the ability to collectively shape economic decisions at multiple levels: 

• within organisations  

• between organisations  

• in relation to stakeholders  

• in interactions with public authorities 

This broader perspective highlights that inclusion is not only about access, but also about voice, power and co-decision. 

A diverse and uneven landscape across Europe 

The social economy is highly diverse and unevenly developed across Europe. 

In countries such as France, Spain and Belgium, it benefits from strong institutional recognition and supportive policy frameworks. In others, it remains fragmented or under-recognised, often overlapping with related concepts such as social entrepreneurship or social innovation. 

These differences affect both the visibility of the sector and its capacity to contribute to policy and practice. 

At the same time, some common enabling factors emerge: 

• supportive legal and policy environments  

• strong networks and umbrella organisations  

• active civil society and bottom-up initiatives  

  
  

Challenges to be addressed 

Despite its potential, the social economy still faces important challenges: 

• fragmented or inconsistent policy frameworks  

• limited recognition in some national contexts  

• gaps between formal and actual democratic practices  

• increasing pressure from market-oriented approaches  

These factors can limit its capacity to fully contribute to social inclusion and systemic change. 

Looking ahead: from supporting to transforming 

A key takeaway from DICES is that the social economy should not be seen only as a tool to address social problems. 

Rather, it should be recognised as a strategic actor in transforming economic systems towards greater inclusion, democracy and sustainability. 

This requires: 

• stronger and more coherent policy frameworks  

• support for collaboration and ecosystem-building  

• investment in democratic governance practices  

• greater recognition of the role of care and social relationships  

  
  

Ultimately, the social economy points towards a broader shift: an economy where value is created not only through markets, but through relationships, participation and collective well-being. 

Daniele Tappa, Diesis Network

References 

• DICES Project (2024), D2.1 Conceptual Framework and Mapping of the Social Economy in Europe