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SOCIAL ECONOMY IN SPAIN

The current configuration of the Spanish Social Economy is marked by the approval of Law 5/2011, of March 29, on Social Economy, which undoubtedly represented an unprecedented turning point for the recognition, visibility and development of the Sector, both within the State itself and the European Union. Recently, the approval of Law 31/2015, of 9 September, which modifies and updates the regulations on self-employment and measures to promote and promote self-employment and the Social Economy, has come to complete this normative framework establishing measures of development and promotion of the Spanish social economy.
The basic objective of the Law is to set up a legal framework that, without pretending to replace the current regulations of each of the entities that make up the sector, implies the recognition and better visibility of the social economy, granting it greater legal security through actions to define the social economy, establishing the principles that should be considered by the different entities that comprise it.
The text of the Law itself defines the Social Economy as the set of economic and business activities carried out in the private sphere by those entities that, in accordance with the following principles, pursue the general economic or social interest, or both.

The principles that guide the Social Economy in Spain are:
- Primacy of people and the social purpose over the capital, which is embodied in autonomous and transparent, democratic and participatory management, which leads to prioritizing decision making more in terms of people and their contributions of work and services provided to the entity or in the function of the social purpose, that in relation to its contributions to the social capital.
- Application of the results obtained from the economic activity mainly based on the work contributed and service or activity carried out by the members and partners or by its members and, where appropriate, the social purpose object of the entity.
- Promotion of internal solidarity and with a society that fosters a commitment to local development, equal opportunities for men and women, social cohesion, the inclusion of people at risk of social exclusion, generation of stable and quality employment, the reconciliation of personal, family and work-life and sustainability.
- Independence with respect to public powers.

Based on these principles, the set of the various entities and companies included in the social economy is included. Likewise, the promotion, encouragement and development of social economy entities and their representative organizations are recognized as a task of general interest. In addition, it considers the importance of the interlocution of public authorities with organizations representing the different entities that make up the social economy, own by their legal status and activity, underlining the role to be played by intersectoral confederations at the state level representative of the sector and restoring with the most appropriate legal reserve, the Council for the Promotion of the Social Economy as an advisory and consultative body linked to the Ministry of Labor and Immigration, linking it to the sector through this Law, since previously it was incardinated in the state legislation of companies Cooperatives

The draft Law consists of nine articles, seven additional provisions, two transitory provisions and four final provisions.
Article 1 marks the purpose of the law, which is the establishment of a common legal framework for all the entities that make up the social economy sector and the promotion measures applicable to it;
In compliance with the above, article 2 deals with the concept and denomination of the social economy.
Article 3 sets as the scope of application of the law the entities of the Social Economy that act in the State, but without prejudice to the competencies assumed by the Autonomous Communities.
Article 4 presents the four guiding principles common to all entities of the social economy, which are those included in Article 5, either by direct naming and in the terms of section one, or by means of the procedure set out in paragraph two of the aforementioned precept.
Article 6 regulates the catalogue of social economy entities, which will be prepared and updated by the Ministry of Labor and Immigration following a report from the Council for the Promotion of the Social Economy, in no case having constitutive character.
Article 7 includes the principles of representation of the entities of the social economy and the criteria of representativeness of the representative intersectoral confederations at the state level. For its part, Article 8 meets another of the objects of the law: recognition of the promotion and dissemination of the social economy.
Article 9 regulates in this Law the Council for the Promotion of the Social Economy, an advisory and consultative body in the matter, with the establishment of its functions.

Likewise, as established by the Law, the following entities are part of this business and diverse group that is the Social Economy:
· Cooperatives
· Labor Enterprises
· Mutual
· Special Employment Centers
· Insertion companies
· Fishermen's Associations
· Associations
· Foundations

SPANISH STRATEGY OF THE SOCIAL ECONOMY 2017 - 2020


Spain has a great tradition in the field of social economy. This historical context has been marked by numerous experiences that developed at the end of the 18th century and the beginning of the 19th century between cooperative, associative and mutualist formulas. Our country developed different models and was not oblivious to what was happening in other countries in its
the environment in which this way of doing economics and creating jobs began to stand out among others.
This happened in England, Italy, France or Portugal, with whom we have maintained different collaborations and exchanges of experiences, in order to strengthen ties and consolidate the Spanish model of social economy. The experience in these countries and their own traditional and traditional heritage, made them develop different concepts and collect the inspiring principles of
the social economy.
Our country gathers in the Magna Carta the juridical substrate in which the different entities of the social economy have reflected their recognition. In different articles including the social equality clause in 9.2, in article 1.1 or in 129.2, or specific articles such as 40, 41 and 47, they give the social economy the greatest legal backing due to the range of the norm that the contemplates: the
Spanish Constitution of 1978.
In terms of job creation, the behaviour of social economy entities in previous years of serious economic crisis is undeniable, as evidenced by the fact that, between the fourth quarter of 2007 and the fourth quarter of 2013, the Destruction of employment in the cooperatives has been almost six points lower in terms of Social Security affiliation than the rest of the companies, or the
constant increase in the number of workers of the insertion companies during the years of greatest difficulties. Only in the last year, the insertion companies have increased by 18 points the percentage of workers hired who previously were at risk of exclusion 


Characteristics of employment in the social economy.
The most relevant characteristics of employment in the social economy are the following:

• Female presence is limited in labour societies and reaches 47.1% of employment in cooperatives. In total, 44.8% of the workers are women
• Young employment is relevant, given that 42% of all workers are under 40 years old. The incidence of youth employment is particularly high in the field of agriculture.
• The incidence of part-time employment is relatively high: almost a fifth of workers have half a day (19.9%). The incidence of partial employment is particularly intense in limited labour societies (26.6%) and in relation to women (31.8%).
• The incidence of temporary employment is relatively small, supported by the sectoral composition of employment. The temporary rate was about two points below the total average, at 25.1%. This rate was relatively low in cooperatives (23.2%) and high in limited labour companies (35.8%), probably due to the sectoral composition of employment. As usual, the rate is significantly higher among young people and foreigners, as well as in Andalusia, Asturias, Cantabria and Extremadura. The lowest temporality rates are observed in the Valencian Community (16.7%).
• One-third of workers have been in employment for more than five years. The stability is especially high in anonymous labour companies, where more than half of the employees have been in the position for more than five years. Stability is greater in microenterprises of less than five workers and in the largest, with more than 250 workers. Also in trade and manufactures.

 

The social economy sector is a top-level business asset of our society. Within the framework of the social economy, more than 43,000 companies and entities (CEPES data) are included, which, regardless of the legal form they adopt, act in accordance with the guiding principles of the social economy (application of the results obtained from economic activity mainly in terms of the work provided and service or activity carried out, promotion of internal solidarity and with society, and independence from public authorities, among others).

Faced with the challenge of our country to consolidate a sustainable and inclusive economy that gives opportunities to groups with greater employability difficulties, that bets and encourages collective entrepreneurship as a formula for creating quality, flexible and stable employment, framed in other objectives strategic as are the fight against depopulation and the rational use of
natural resources, respectful of its environment and with the environment, the Spanish Strategy of Social Economy 2017-2020 responds to the Government's interest in promoting this business model to increase its contribution to the socio-economic development of the State, improving its competitiveness and the conditions of action in the market along with other business and social actors.


This Strategy is elaborated in accordance with the mandate established in Law 5/2011, of March 29, of the Social Economy, which establishes that the government will approve a program to promote social economy entities, with special attention to those of singular rooted in their environment and those that generate employment in the most disadvantaged sectors.
The General Directorate of Autonomous Work, the Social Economy and the Social Responsibility of Companies drafted the Program for the Promotion and Promotion of the Social Economy 2015-2016, which had thirty-two measures, organized around seven axes, in those that contemplated actions of the impulse to the creation and fortification of the companies and entities of the social economy, revision of the juridical frame, support to the internationalization and innovation of the entities of the social economy, or the development of the social economy in the framework of the European agenda, among others.


Once the period of application of the previous Impulse Program has ended and a large part of its measures have been executed, it is necessary to review its content and impact, in order to establish a series of actions for a Multi-annual Strategy with a time horizon of 2020, that takes into account the contributions of intersectoral organizations representative of social economy entities and very mainly the recommendations of the European Union in favour of the social economy that is incorporated in the Conclusions of the Council of the European Union "The promotion of social economy as a key driver of economic and social development in Europe» (December 2015) and in the statements of the European Social Economy Conferences.

prolix in works directed to the promotion of the social economy and in the active search of European partners to sensitize the European Commission of the importance in terms of employment and GDP of the social economy.


Spain has positioned itself among the countries that defend that the social economy represents one of the main tools for the creation of employment and for social innovation and that they demand greater support to the sector from the European Institutions. This commitment has been reflected in the Declaration of Luxembourg (2015), signed by six member states of the Union, in which Spain participates actively from its origin as a signatory, also holding the Presidency of the Committee to Follow up on the Declaration.
This commitment has continued through the Bratislava Declaration (2016), and has culminated in the Madrid Declaration (2017), in which eleven states advocate the Social Economy as a business model for the future of the European Union and show its support for the various forms of the social economy, affect the need to take into account and promote the particularities of social economy enterprises in the single market, on the importance of including and supporting social economy enterprises through programs, projects and funds and in the innovative and sustainable development of an adequate financial ecosystem.
They agree, in addition, that national and European policies to support entrepreneurship should take into account social economy models as a formula for the creation of inclusive employment and a fairer, more equitable and sustainable society, and that participation should be encouraged of the social economy in the educational, training and professional training activities for the acquisition of competences and lifelong learning, and that the possibility of promoting and including entrepreneurship under formulas of the social economy within the study plans in the different educational stages.

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Number of social economy entities

43.192

(*) Source: Ministry for Employment and Social Security. General Direction of Self-employment, Social Economy and CSR (Corporate Social Responsability).

(**) Source: CEPES. Data provided by CNEPS (mutualities), FAEDEI (Social insertion companies), FEACEM (special employment centres. Data 2013)and FNCP (Fishing Guilds)and REAS.

(***) Source: CLADE GROUP, ESPRIU FOUNDATION, ATLANTIS,UNIDE, AEDIS, GRUPO COOPERATIVO CAJAMAR, MONDRAGON CORPORATION, UECOE and REAS.

(****) Source: CERMI, UNIDE and REAS.

(*****) Source: UNIDE, UECOE,ESPRIU FOUNDATION, CLADE GROUP, CEPES Navarra, MONDRAGON CORPORATION and REAS.

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Direct and indirect jobs
2.184.234


*) Source: Ministry for Employment and Social Security. General Direction of Self-employed, Social Economy and Corporate Social Responsability.

(**) Source: Data provided by ONCE, ILUNION, FAEDEI,FUNDACIÓN ESPRIÚ, FNCP,CEPES-Navarra, REAS, Atlantis Group and CONCOVI.

(***) Source: Data provided by CEPES-Andalucía, UECOE, UNACOMAR,REAS, Group Clade and CEPES-Extremadura.

(****) Source: SPANISH AGRO-ALIMENTARY COOPERATIVES. Data 2013.

(*****) Source: Data provided by CEPES´members.

Information and regulations on Social Enterprises

In Spain, some competencies are National and some competencies are regional, meaning that it depends on each Autonomous Community.
There is one national law that regulates the Social Economy. The complete text in Spanish can be found here: https://www.boe.es/buscar/act.php?id=BOE-A-2011-5708&p=20150910&tn=1
 
Regarding the different legal forms that a social enterprise can commonly adopt, meaning cooperatives, associations and workforce owned companies, they have their own normative framework. In the case of Associations and Cooperatives, the legislation in Spain depends on each Autonomous Community. So, in the case of Catalonia, there are Catalan laws that regulate both of them.
 
The Catalan law for cooperatives is ruled by Law 12/2015, of July 9th.
The complete text in Spanish can be found here:
https://www.boe.es/buscar/pdf/2015/BOE-A-2015-9140-consolidado.pdf

 
The associations in Catalonia find their regulation in Art. 321.1, Catalan Civil Code and following, where issues related to its nature, its constitution, its organization, its operation and, in short, all those aspects related to this figure are addressed.
The Law 4/2008, of April 24th where it is regulated, can be found here:

https://www.boe.es/buscar/doc.php?id=BOE-A-2008-9293
 
All other related regulations to associations can be found here:
http://tjussana.cat/legislacio.php

 
Workforce owned companies are regulated by the National Law, in particular by Law 44/2015, of October 14th.
The complete text in Spanish can be found here:

https://www.boe.es/buscar/doc.php?id=BOE-A-2015-11071.
 
A general description of what they are and some links to regulations can be found here: https://treball.gencat.cat/ca/ambits/economia_social/que_es_l_economia_social/que_son_les_cooperatives_i_les_s/que_es_una_societat_laboral/
 
The basic characteristics and regulations for Associations and Cooperatives in 2021 can be found in the following chart (in Catalan):
https://www.bcn.coop/wp-content/uploads/2021/01/associacio_cooperativa_web.pdf
 
Steps for setting up a Social Enterprise 
 
Setting up a social enterprise depends on the legal form the companies adopt.
Here you can find the basic steps for setting up a cooperative in Catalunya:
https://bcn.coop/wp-content/uploads/2018/06/Desplegable_Passos_corregit_impremta.pdf
 
Regarding associations, here you can find a manual on how to constitute and initiate an association: http://tjussana.cat/doc/publicacions/UP_22.pdf
 
Aid and incentives, access to finance and markets
 
Barcelona Activa is Barcelona’s local economic development agency. In their website you can find resources and links to access to finance for the social economy:
https://emprenedoria.barcelonactiva.cat/emprenedoria/cat/guia/recerca_financament/icfeconomiasocial.jsp?cami=tcm:78-26892tcm:78-26856
 
On a regional level, the Generalitat of Catalonia has also information regarding credits and other financial resources: https://treball.gencat.cat/ca/actualitat/ci/reportatges/economia-social-i-cooperativisme
 
Development of social cooperative enterprises 
Here you can find the basic steps for setting up a cooperative in Catalunya:
https://bcn.coop/wp-content/uploads/2018/06/Desplegable_Passos_corregit_impremta.pdf

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