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Social Economy

Usera
Disadvantaged groups

Social economy: the bridge to youth employment that transforms neighborhoods

The persistent challenge of youth unemployment, magnified in disadvantaged and socially vulnerable neighborhoods, requires solutions that go beyond mere subsidies. We need structural models that not only provide a job, but also reintegrate the individual and give them a sense of belonging and purpose. This is where the Social Economy model, with a special emphasis on cooperatives, emerges as a crucial lever for transformation.

16 December 2025

Cooperatives, in essence, are democratically governed organizations whose main objective is the well-being of their members and the community. This philosophy makes them inherently suited to addressing the social and labor exclusion that affects young people in these environments. They do not seek to maximize profit for an external shareholder, but rather to create shared wealth, stable employment, and dignity.

For a young person from a vulnerable neighborhood, a cooperative is much more than a business; it is a school of life and work. It provides a safe environment where practical training is combined with real work experience from day one. This process, known as Integration Companies or Integration Cooperatives, addresses the dual barriers faced by young people:

1.    Qualification Barriers: Offering training in specific, in-demand trades (digital, sustainable, or service-related).

2. Social Barriers: Fostering social capital and soft skills (teamwork, responsibility, decision-making) through direct participation in management.

The democratic nature of the cooperative model turns young employees into partners, giving them a say in the direction of the business, which is a vital empowerment factor for those who have grown up feeling excluded.

 Inspiring examples

The effectiveness of this approach is demonstrated by specific examples operating in the most vulnerable neighborhoods in our country:

•    Seville – Polígono Sur: Here, Integration Companies (EIL) focus on building renovation and energy efficiency. Young people from the neighborhood are trained as installers, electricians, or bricklayers, providing affordable renovation services to their own neighbors. This not only generates employment but also improves the neighborhood's infrastructure from within, demonstrating a two-way commitment.

Barcelona – El Raval and La Zona Franca: The cooperative model has flourished in the circular economy. Creative recycling and textile waste management projects employ young people to transform discarded materials into valuable products. These cooperatives often integrate online sales, forcing young people to acquire the digital skills essential for the 21st century.

Madrid – Vallecas and Usera: Local service cooperatives have been developed, such as social catering, garden maintenance, and eco-friendly cleaning. These businesses thrive because they meet internal demand in the neighborhood (schools, social centers, elderly people), generating a constant and sustainable flow of work.

These cases illustrate that the key to success is territorial anchoring. Cooperatives are efficient because they understand the specific dynamics and needs of the neighborhood, creating a virtuous cycle where the business benefits the community, and the community supports the business.

 

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