Abstract
In periods of recession, private sector of economy does not develop entrepreneurial action, due to limited demand which implies limited profits. This results in reduction in employment and increase in unemployment. Public sector of economy should proceed to public investments and enhance development. However, in the present economic crisis, public sector does not develop initiatives, due to budget deficit; to the contrary public sector is confined and contributes to the maintenance of recession. Social sector of economy does not aim at profit making but at job creation, mainly for the vulnerable groups of population. It intervenes by taking actions of mild economic growth and contributes to economic recovery. For this reason, national legislations in Europe provide the establishment of social economy enterprises. Local government, which, in a sense, belongs to the social sector of economy, has the possibilities to reinforce both social economy enterprises and actions of social entrepreneurship aiming for the enhancement of local economy.
Highlights
In periods of recession, private sector of economy does not develop entrepreneurial action, due to limited demand which implies limited profits
Social economy is an arena of business activity including the public and the private sector
The main difference of social enterprises comparing to the other schemes is the goal they serve and the population groups that benefit from such actions, their operation means and the favorable regulations stipulated usually by states for facilitating the establishment of social economy enterprises
Summary
Social economy is an arena of business activity including the public and the private sector. The collective action sector, the character, extent and organization of which are affected both by public sector rationale and market rationale, includes entities and activities that enable the participation and collective efforts of citizens with respectively common interests and benefits. They do not – primarily – aim at profit-making, even in cases when they plan and seek for profit, but at the fulfillment of specific social needs, they frequently make use of organizational schemes of business functions; or – in parallel to their social goals, they still head to revenue gains or to ensuring financial self-sufficiency by being paid for the products and services they provide. Social entrepreneurship is structured and operates by the implementation of market rules; the entities involved make their management decisions on a democratic basis, providing any compensation gained from services provided or products manufactured to related activities or for reinforcing the same or similar entities
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