Social economy entities and enterprises: key concepts and examples

What are social economy enterprises?

Social economy enterprises are private organisations that carry out economic activity, but whose main goal is not profit, but rather the general interest, inclusion, and sustainability. They are governed by values such as:

• Democratic management.
• Primacy of people over capital.
• Reinvestment of profits for social purposes.
• Solidarity and fairness.

This economic model plays a key role in economic and social development, based on values such as solidarity, participation, and sustainability.

Its legal framework is established in Law 5/2011 on the Social Economy, which recognises a wide range of organisations with shared principles, democratic governance, and a social interest purpose.

You can learn more about the principles, benefits and general functioning of this model in our article on what is the social economy.

Types of organisations within the social economy

Key types of social economy entities include:

Co-operatives

Democratically managed organisations in which members actively participate in decision-making and share profits fairly. They operate in sectors such as agriculture, consumer goods, housing, or labour.

Mutual societies

Organisations that provide their members with protection and welfare services, such as life insurance or healthcare, based on mutual aid and not-for-profit principles.

Foundations

Organisations engaged in activities serving the general interest, such as education, research, or culture. They reinvest resources to fulfil their social mission.

Associations with economic activity

Non-profit groups that, in addition to pursuing social goals, carry out economic activities to fund their operations and achieve their mission.

Worker-owned companies

Businesses in which the majority of share capital is owned by the workers. They promote stable employment and employee involvement in governance.

Work integration enterprises

These aim to integrate people at risk of social exclusion into the labour market, combining training and employment with tailored support.

Special employment centres

Their aim is to employ people with disabilities by adapting the workplace to their needs and supporting their entry into the labour market.

Fishermen’s guilds

Associations representing workers in the fishing industry, defending their economic, social, and professional interests.

Agricultural Transformation Companies (SAT)

Businesses dedicated to improving the production, processing, and marketing of agricultural and livestock products under the social economy model.

Unique entities regulated by specific laws

Special entities created under specific legal provisions, governed by the principles of the social economy as defined in Article 4 of Law 5/2011 on the Social Economy.
 

Representative organisations of the social economy

 CEPES and its institutional role

The Confederación Empresarial Española de Economía Social  (CEPES) represents all of these organisations before public institutions.

It brings together organisations such as:

• COCETA: represents worker co-operatives, in which the workers are also member-owners.
• LABORPAR: groups worker-owned and employee-participated companies, where most capital is held by employees.
• Fundación Espriu: promotes and coordinates healthcare co-operatives that provide medical care through a participatory, non-profit model.
   

Other networks in Spain and Europe

Other key networks include:

• Social Economy Europe: the leading European-level organisation representing the social economy before EU institutions.
• CIRIEC (International Centre of Research and Information on the Public, Social and Cooperative Economy): promotes scientific research on social economy and public policy.
• International Co-operative Alliance (ICA): a global body representing and supporting the co-operative movement worldwide, promoting its values and principles.

These organisations boost the visibility, research, and political advocacy of the model.

Notable examples of social economy in Spain

The social economy plays a vital role in many key sectors of Spain’s economy, through organisations that combine business activity with social commitment:

• Healthcare and social services: including healthcare co-operatives such as SCIAS or ASISA, and mutual societies providing non-profit medical care.
• Agriculture and local production: agricultural co-operatives and SATs that drive rural development and sustainable production.
• Education and training: foundations and associations running educational centres and inclusive training programmes.
• Renewable energy and sustainability: energy co-operatives promoting responsible consumption and ecological transition.
• Fair trade and ethical banking: entities offering financial and consumer products based on fairness, transparency, and social responsibility.
• Workforce integration: work integration enterprises that support vulnerable individuals into stable employment.

To discover real stories of transformational impact in co-operatives and social enterprises, visit our Compartir Magazine.

Models and approaches to the social economy

Social and solidarity economy: the case of Catalonia

In Catalonia, the model includes community-rooted organisations that prioritise participation, transparency, and transformative impact. Healthcare co-operatives promoted by Fundación Espriu are an example of this approach.

The European social market economy

Recognised by the European Union, this approach combines market principles with social values, positioning the social economy as a pillar of sustainable development and territorial cohesion.