Social Economy in Europe: A Strategic Pillar for Competitiveness and Prosperity (OECD Report 2025)


Recently published in December 2025, the OECD report titled "Social Economy in Europe: Contributing to Competitiveness and Prosperity" stands as the most comprehensive analysis of the sector’s position within the modern European economic landscape. This landmark publication examines the transformation of the social economy from a niche "social protection" sector into a central actor in the European industrial strategy. By analyzing institutional frameworks across Member States, the report highlights the challenges in accessing finance and demonstrates how social enterprises bolster local economic resilience while providing essential solutions for the green and digital transitions.

According to the updated OECD data, the social economy in the European Union now employs 11.5 million workers, representing 6.3% of the total workforce. The report maps over 4.3 million entities, including cooperatives, associations, mutuals, and foundations, which form the backbone of the EU's "proximity ecosystem." A striking statistic reveals that in several European countries, 10% of all businesses now belong to the social economy sector, showcasing the model’s significant momentum. The analysis focuses on three core axes: institutional recognition, social impact measurement, and market access. Notably, the OECD points out that social enterprises exhibit a 15% higher survival rate after their first five years compared to conventional SMEs, largely due to their participatory governance models and profit reinvestment strategies.

The report emphasizes the necessity of "co-construction" in policy-making, where public authorities and social economy actors collaborate as equal partners. Despite this progress, access to capital remains a hurdle, with 40% of organizationsreporting difficulties in securing financial instruments that align with their social mission. In conclusion, the OECD asserts that the social economy is indispensable for an "economy that works for people." Its integration into mainstream economic policies is no longer an option but a necessity for ensuring social cohesion and sustainable growth. Europe's future prosperity depends on supporting these hybrid models that combine economic viability with social benefit, ensuring a fair competitive framework and enhancing the digital skills of their workforce.

Source: OECD (2025), Social Economy in Europe: Contributing to Competitiveness and Prosperity: https://www.oecd.org/en/publications/social-economy-in-europe_3432de93-en.html