New strategy to pave the way for a growing and effective social economy

The strategy aims to develop the social economy and social entrepreneurship and to improve the operating conditions of social enterprises in Finland.

The social economy is part of the national economy and industrial and business activity. It refers to operators that provide goods or services to their members or society. What is common to these operators is their emphasis on people and social or environmental objectives, instead of profits. 

Social enterprises are engaged in business activity to achieve a chosen social objective and direct the majority of their profits or surplus to advance this purpose. It is estimated that there are approximately 5,000 social enterprises in Finland. Their combined turnover is over EUR 10 billion and they employ more than 85,000 people.

Vision for the future is a growing and effective social economy

The strategy’s vision for 2026–2030 is that Finland has a growing and effective social economy that boosts employment, increases social inclusion and supports ecologically and socially sustainable growth. The activities are based on good operating conditions for social enterprises and the operators engaged in the social economy.    

The most important development areas in the social economy are related to the availability of funding, social innovations, promotion of employment, and procurement practices. Within the sectors, a particular focus is placed on the healthcare and social welfare sectors as well as the circular economy. By offering services e.g. in rural areas together with the public and third sectors, the social economy can contribute to security of supply and social resilience. Different forms of guidance and communications also play a key role.

An action plan will define concrete measures to achieve the goals.

Updated strategy responds to EU recommendations

Finland’s first strategy for social enterprises was adopted in 2021. Since then, the EU and other international bodies have issued various recommendations to promote the social economy and social entrepreneurship. The updated strategy primarily responds to the EU’s Recommendation on social economy, but it also takes into consideration national development needs.

The Ministry of Economic Affairs and Employment prepared the strategy in broad-based cooperation with social economy actors. The Centre of expertise for Social enterprises compiled information to support the preparation of the strategy. The preparation was steered by the leading group of the ESF+ coordination project on Improving the business conditions of social enterprises.

Inquiries:
Hanna Hämäläinen, Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 047 060