People Over Profits: The Rise of Europe’s Social Economy
The latest episode of Real Economy unveils the humans at the heart of Sweden’s social economy ventures. Their mission? Making a lasting positive impact, not just pocketing profits.
While discussions on economies typically revolve around growth, profits, and stakeholders, we dive deep into Sweden’s Gothenburg to uncover a unique economic realm that prioritizes individuals: the social economy.
Meet Matilda Holgersson, a 31-year-old Swede passionate about music, arts, and felines. Past health complications once sidelined her from the workforce. “I faced burnout in 2017, battling exhaustion syndrome and depression, which quickly deteriorated my health,” Matilda shared with Bryan Carter from Real Economy.
However, her journey to recovery was marked by her role at Ängås Gård, a co-op focusing on food production and events. This environment, fostered by the Social Trade organization, allowed her to experience the beauty of working in a setting where everyone supports and understands one another.
However, Mari Odenbjörk, the CEO of Social Trade, points out a challenge: cooperatives and social ventures in Sweden often face skepticism. “My mission is to bridge the gap between traditional firms and those designed to genuinely make a change,” says Mari.
Gothenburg’s harbor houses another exemplary social enterprise, Kajskjul46. They offer services like furniture refurbishing and textile printing while serving as a work-rehabilitation hub. The profits generated are reinvested, which sometimes poses financial challenges, as Maria from Kajskjul46 notes.
While Sweden’s social economy comprises 4.2% of its paid workforce, it trails behind the EU average and notably, Luxembourg. Giulia Galera, a specialist on the social economy, stresses the need for public policies that champion the social responsibilities these ventures undertake.
Although securing investments is crucial, Galera believes fostering favorable conditions for the growth of social enterprises is paramount.
In December 2021, the EU rolled out an Action Plan for the social economy, aiming to harness its vast potential. This plan emphasizes the distinct dynamics of the social economy, differentiating it from mainstream businesses. It also acknowledges its expansive reach beyond just welfare sectors.
However, its success hinges on EU nations’ readiness to champion initiatives advancing the social economy. This could pave the way for individuals like Matilda to envision a promising future. “I’m optimistic about my future, and I see a world of possibilities ahead,” she affirms.
