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The Social and Solidarity Economy (SSE) in FRANCE


The social and solidarity economy is a local economy contributing to the creation of jobs and local dynamics.
The ESS places at the heart of its project the question of territorialization, added value, and is the bearer of many innovations: recycling and reuse, short circuits, sustainable food, the fight against energy poverty, renewable energies ...
Its diversity is what makes it so rich, but can also make it difficult to grasp: the ESS deploys its activities in areas as varied as home care, financial and insurance activities, social housing, culture and sport, commerce, agriculture ...


The social and solidarity economy (SSE) thus gather a set of structures that have various statuary forms:
- Cooperatives,
- Associations,
- Complimentary health insurance,
- Foundations,
- As well as some commercial companies.

 

Relying on a strong territorial anchoring (they are first and foremost groups of people), they play a major role in urban and rural areas, in the development of services to the population, the creation of non-relocatable jobs and the contribution to the quality of life in the territories.


An economic model based on a mix of resources
The economic model of SSE companies varies depending on the company and the field of activity: some of the companies are 100% commercial, others rely on non-market or even non-monetary resources., from the public and private sectors. They all share the principle of non-profit or limited profitability.
The majority of SSE organizations, and in particular its main component, the associations, mobilize various resources (sales of products or services, public subsidies for the missions of general interest that they carry out, income from activities, contributions, donations, skill-sharing), not to mention voluntary contributions in kind (valuation of volunteering, loan of premises and equipment).


An economy with a long history in France responding to current challenges
If the social and solidary economy has historical roots (the term « Economie Sociale » and the first workers' associations, cooperatives and mutual aid companies. can be traced back to the first half of the 19th century), its methods and principles of action make it a player capable of facing current challenges.

For instance, it provides responses to changes in employment conditions, relying in particular on cooperation and pooling:
- Cooperatives for the use of agricultural equipment (« Coopératives d'utilisation du matériel agricole » : CUMA) allowing farmers to develop their activity in the post-WW2 period,
- Cooperatives (« coopératives d’activités et d’emplois ») allowing to secure the creation of activities,
- Coworking spaces (tiers-lieux) supporting the development of teleworking and new forms of work,
- Employer groups (« Groupement d’employeurs ») allowing jobs to be shared between several structures
- « Entreprises à but d’emploi » from the french territory experiment « territoire zero chomeurs de longue durée » (zero long-term unemployed) developing new activities in a territory based on the skills of unemployed people with the money they would have perceived forme their jobseekers allowances ...
An economy contributing to the general interest
Through its fields of activity, its ways of doing things and its values, the social and solidary economy thus bring together the mission of general interest and the various competences of communities. The establishment of public policy to support the social and solidary economy makes it possible to promote the development of SSE in the territories.


Focus on the French ESS law
The French SSE law of July 2014 defines the scope of SSE companies in its article 1:
SSE is "a mode of entrepreneurship and economic development adapted to all areas of human activity to which private law legal entities adhere which meet the following cumulative conditions:
1. a goal pursued other than the sole sharing of profits.
2. Democratic governance, defined and organized by the statutes, providing for the information and participation of partners, employees and stakeholders in the achievements of the company.
3. Management in accordance with the following principles:
- The profits are mainly devoted to the objective of maintaining or developing the activities of the company;
- Compulsory reserves established, indivisible, cannot be distributed”.
Article one of Law No. 2014-856 of July 31, 2014 relating to SSE (the so-called Hamon law is inclusive, brought together all SSE families)


Lyon, a territory of social innovation:

Lyon is considered as the historical cradle of the SSE in fact in the 19th century a silk merchant was first a disciple of Saint Simon and began to dream of a new economic order then he was seduced by Charles Fourrier and his utopian socialism Jean Michel Derrion created a social grocery store at the foot of the slopes of the Croix-Rousse in 1835. He founded, in fact, a veritable social commerce, the first experience of solidarity-based commerce known in France, the first stone of a global project of transformation of the economy influenced by associationism and mutualist movements. He sided with the silk workers (the Canuts) by advocating a fair distribution of profits.
The municipality was among the very first to set up a dedicated delegation in 2001, the objective of the city of Lyon is to contribute to the development of SSE in its territory. Taking note of the plurality of the economy, always linked to the different levels of communities (2014-2020 mandate plan). The objective of the city of Lyon is to allow the ESS to scale up and fully contribute to the human and economic development of Lyon.


Action plan:
1 / develop the economic potential of the sector and strengthen the capacities of SSE actors and their representatives to generate economic, social, solidary and ecological growth.
2 / facilitate the emergence and sustainability of social innovation, a source of responses to social needs, little or poorly satisfied by the market or the state.
3 / make the social and solidary economy, its concepts, its values, its offer, accessible to the greatest number, in all the territories of the city
4/ support and support the actors of the social and solidary economy in their process of progress towards exemplary fair and sustainable practices.
The 3 strategic axes of this action plan are as follows:
1. Promotion of the social and solidary economy
2. Entrepreneurship in social and solidary economy and development of economic activities
3. Development of responsible consumption and structuring of the sustainable food sector
Indeed, the city of Lyon has been strongly committed for many years in terms of encouraging and supporting responsible consumption since 2009. The local authority is part of the fair-trade territories, a national title awarded by the platform for the fair trade “my flagship project” for the city of Lyon in terms of promoting responsible consumption. The creation in 2010 of the Lyon fair and sustainable city territorial label. This initiative, unique in France, marked the city's desire to identify and promote businesses, shops and artisans. Places and events that respond pragmatically to the challenges of sustainable development through a responsible consumption offer.
The Lyon Fair and Sustainable City label is as much a benchmark at the service of citizen consumers as it is a tool for bringing together the different families of actors who represent the responsible consumption offer in Lyon. The basis of a dynamic network, it also aims to stimulate collective projects that energize and make visible the activities of its members. Moreover, the city of Lyon received the Fair Trade City Award in the social innovation
categories in June 2019. Arancha Gonzalez Director of the International Trade Center of the European Commission and of the European Commissioner for Trade Malmstrom. This prize, launched in 2018 by the European Commission, recognized the European cities most committed to fair trade and responsible consumption. Indeed, on this occasion Lyon was recognized for its historic involvement in this sector, in particular through its unrivalled label in Europe and globally for its active support for the social and solidary economy. As well as in matters of international cooperation.
The city of Lyon is today involved in a European network of social innovation which allows it to promote both the territory and the actors of the social and solidary economy.

Information and regulations on Social Enterprises in France
 
Article 1 of the law of July 31, 2014 specifies that part of the social and solidarity economy is composed of "private legal persons constituted in the form of cooperatives, mutual societies, foundations or associations governed by the law of July 1 1901 ', that is to say the companies of the social economy.
These SSE structures can take different legal forms. They come together around common values ​​and principles: democracy, social utility of the project, local roots and non-profit or limited profit.
They all respect several major basic principles:
1. Primacy of people and of the corporate purpose over capital ...
2. Collective or social utility ...
3. Individual non-profitability and fair distribution of surpluses ....
4. Democratic governance
5. Freedom of membership ....
6. Resource hybridization
Five families in France:
• Cooperatives, / made up of associate members who hold at least a share in the structure, their governance is based on the democratic principle of one person one vote.
• Mutuals / non-profit, they are in the health and insurance sector. principle of dual quality (both beneficiary and member).
• Associations / governed by the 1901 law
• Foundations / people, companies
• Commercial enterprises of social utility with commercial status / they respect the values ​​of the SSE, the purpose is social comes before the economic objectives.
Its diversity in France makes it rich, but also makes it difficult to understand. Indeed, these companies in France carry out activities in fields as varied as home help, financial activities, and insurance, accommodation, medico-social, culture, sport, commerce, agriculture .... it counts 2.4 million employees and 12 million volunteers, 10% of salaried employment and approximately 200,000 companies.
https://www.legifrance.gouv.fr/loda/article_lc/LEGIARTI000029314926/
https://www.economie.gouv.fr/cedef/economie-sociale-et-solidaire
http://www.fse.gouv.fr/dossiers-thematiques/economie-sociale-solidaire-avenir-union-europeenne
 
 

The regulations of social Enterprises:  
The so-called inclusive ESS law takes into account the complexity of this economy. Indeed it has an ancient history corresponding to current challenges. Law of July 31, 2014 brought together the actors of the SSE by addressing the historical statutes that compose it but beyond on fundamental principles of the SSE such as equality, solidarity, and mutual aid as well as collective democratic governance. The law, beyond the recognition of actors in the field, clearly determines the institutional organization of SSE at national and regional levels, promotes joint work with public authorities
 
The 5 objectives of this law:
- Strengthen sustainable local development policies
- Recognize SSE as a specific entrepreneurial mode
- Consolidate the network, governance, and financing tools of SSE actors
- Give employees back the power to act 
- Cause a cooperative shock
 
Overall, it aims to encourage a change of scale in all its aspects, in order to build a more robust growth strategy with SSE companies, richer in jobs, more sustainable....
 

How do you create a social enterprise in France
 
STEP 1: Find a business idea
Identify opportunities
Do a market study
 
STEP 2: Define your creative project
Define your business model
Test your idea
Find your first clients
 
STEP 3: Write a business plan
Presentation of the project and the team
Company financing strategy
Tax strategy
Marketing strategy
STEP 4: Finance your business creation project
Finance your business with own funds
Finance your business with a loan
Finance your business by raising funds
Benefit from aid for business creation
 
STEP 5: Choose your legal structure
STEP 6: Create a business
 
https://www.legalstart.fr/fiches-pratiques/creer-sa-societe/etapes-de-creation-entreprise/#ancre1
https://www.creerentreprise.fr/creer-entreprise-economie-sociale-et-solidaire/
 

Aid and incentives, access to finance and markets
 
• France Active grants solidary loans to committed entrepreneurs.
• La Nef, a cooperative finance company, mainly finances activities with an ecological, social and cultural dimension.
• The Caisse Solidaire, a specialized "SSE projects" credit organization created in the Hauts-de-France region, has extended its scope of intervention to the entire national territory.
• Triodos Bank finances business projects with an ethical and sustainable impact.
• Adie allows project leaders who do not have access to bank credit to launch and develop activities that change their life and their territory.
• Réseau Entreprendre grants honorary loans to entrepreneurs who create jobs in their territory and offers an enhanced "Impact +" course to entrepreneurs who seek to develop their impact.
• Initiative France helps entrepreneurs to strengthen their own funds also by granting honorary loans. In particular, it offers a system for remarkable companies.
• The Raiseherpas Endowment Fund also supports entrepreneurs, in particular by offering them honorary loans.
 
France Active advises, supports and grants solidarity loans to committed entrepreneurs.
• Crowdlending finances all types of projects and in particular those having an impact on the environment. Some platforms are even dedicated to ESS. Examples:
- Solydend
- Babyloan which grants solidarity micro-loans to very small businesses with a strong social and environmental utility,
- Miimosa for projects related to agriculture and food,
https://www.banquedesterritoires.fr/accompagner-acteurs-economie-sociale-solidaire
 
Subsidies to SSE companies:
 
The Emergence Square promotes the emergence of new social entrepreneurs, by financing the construction phase of the project, in particular by granting a bonus. This system is part of the Emergence Pact. This allows them to experiment and realize their project before starting their activity.
La Fabrique Aviva rewards innovative projects that are useful to society.
Some regions also support SSE projects. To identify regional aid, consult the National Base for Public Aid to Businesses.
Agefiph supports companies in the development of their projects in favor of the employment of people with disabilities.
https://bpifrance-creation.fr/encyclopedie/financements/divers/financements-dedies-aux-projets-leconomie-sociale-solidaire-ess
European funds:
European Regional Development Fund (ERDF): it assists SMEs and entrepreneurs in various fields (research, technological development, innovation, ICT, etc.), https://ec.europa.eu/regional_policy/fr/funding/erdf/
European Social Fund (ESF): for projects related to employment, worker mobility, education, the fight against exclusion and poverty, https://ec.europa.eu/regional_policy/fr/funding/social-fund/
Cohesion Fund (CF): for projects in the field of transport and the environment in certain countries, https://ec.europa.eu/regional_policy/fr/funding/cohesion-fund/
 
Development of social cooperative enterprises
Cooperatives have always been organizations that create economic dynamics with a strong social impact and that provide structure for rural or urban areas in France. objective of local development, entrepreneurship and creation of activities with a strong social and environmental impact, development of the endogenous resources of the territories, collective mobilization.
Territorial networks of actors:
The territorial economic cooperation poles / PTCE is a kind of competitiveness cluster of the SSE
You will find link to who to create and to development a cooperative enterprises in France  https://www.economie.gouv.fr/entreprises/definition-scop 
https://www.lelabo-ess.org/poles-territoriaux-de-cooperation-economique

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