Unlocking the Social Economy

The report defines the social economy as a diverse sector of actors—including cooperatives, social enterprises, and non-profits—that prioritize purpose over profit. It argues that this sector is uniquely positioned to lead inclusive green and digital transitions and provide resilience during crises. To unlock this potential, the authors propose a two-pronged approach: first, advancing the social economy through supportive regulatory frameworks, funding, and inclusive procurement; and second, recalibrating the mainstream economy by adopting social taxonomies and participatory business models.

• The social economy represents a significant portion of global economic activity, accounting for approximately 7% of global GDP in 2017. In the European Union, the sector comprised 2.8 million enterprises in 2020, employing 13.6 million people, which represents up to 9.9% of the employment rate in certain countries.
• Social economy actors are identified as critical for a just green transition, as they often integrate circular economy principles with social inclusion. They have historically been active in recycling and re-employment, and they currently drive organic agriculture, renewable energy, and low-carbon housing.
• The sector provides a mechanism for an inclusive digital transition by using tools like blockchain to democratize ownership and focusing on up-skilling marginalized communities. This addresses the risk of automation, which the World Economic Forum estimates could displace 85 million jobs within five years.
• Social economy organizations demonstrate higher resilience during economic crises due to their local embeddedness and community-focused governance. For example, during the 2008-2010 global financial crisis, employment in social enterprises grew by 20.1% in Italy and 11.5% in Belgium, contrasting with declines in the public and private sectors.
• The report identifies five primary policy priorities to advance the social economy: establishing supportive regulatory frameworks, creating incentives for funding and taxation, expanding education and research, making procurement channels more inclusive, and systematically collecting social impact data beyond GDP.
• To recalibrate the mainstream economy, the report proposes two additional policy priorities: enhancing accountability through the adoption of social taxonomies and supporting the integration of participatory business models into traditional corporate structures.
• Significant barriers currently hinder the growth of the social economy, including a lack of clear definitions and standardized metrics, which limits visibility, as well as restricted access to markets and financial resources.

APA

World Economic Forum (2022). Unlocking the Social Economy. https://www3.weforum.org/docs/WEF_Unlocking_the_Social_Economy_2022.pdf

Chicago

World Economic Forum. Unlocking the Social Economy. 2022. https://www3.weforum.org/docs/WEF_Unlocking_the_Social_Economy_2022.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Unlocking the Social Economy |date=May 2022 |url=https://www3.weforum.org/docs/WEF_Unlocking_the_Social_Economy_2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2022unlocking, author = {{World Economic Forum}}, title = {{Unlocking the Social Economy}}, institution = {World Economic Forum}, year = {2022}, month = may, url = {https://www3.weforum.org/docs/WEF_Unlocking_the_Social_Economy_2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }