This article explores the relevance of the social economy in addressing contemporary challenges through innovative and sustainable practices, supported by public policies. The research investigates the management models that social and solidarity economy organizations (SSEOs) employ to respond to the challenges of innovation and sustainability. The study includes an in-depth analysis of diverse operational models and accomplishments across various cases, presenting evidence on how the sector adopts innovative and sustainable practices. The article scrutinizes essential characteristics of SSEOs, such as democratic governance, reinvestment of surpluses in social businesses based on innovation and entrepreneurship, and a strong community orientation. These characteristics are examined for their relevance in addressing issues like social inequalities, digital transformation, and climate change. Additionally, the research includes an examination of four diverse cases of SSEOs established in mainland Portugal. It reveals the wide range of activities and significant interactions that these organizations have with various stakeholders in different economic and social contexts, contributing to regional social innovation ecosystems. The empirical study, based on a descriptive case study methodology applied to multiple and heterogeneous cases (in terms of fields of intervention and scale of resources), demonstrates that sustainability has become a driver in the social economy, within a framework of democratic governance and community involvement. Moreover, the research fills a gap in empirical literature by providing strong evidence through real cases of collaborative social innovation, the integration of environmental, social, and governance practices, as well as financial and regulatory support from the state for the resilience of SSEOs. The social value of the research lies in its empirical contribution to demonstrating how social business is a crucial element for communities to address global challenges, promoting economic growth and employment, social justice, including the fight against poverty, and environmental sustainability.
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