What the social economy is and which entities belong to it

Automatic summary, not yet reviewed

1. The law creates a common legal framework for all social economy entities, while respecting each entity's own rules, and sets out support measures in their favor.
2. It defines the social economy as private economic and business activities carried out by entities that pursue the collective interest of their members, the general economic or social interest, or both.
3. It sets four guiding principles: priority of people and the social purpose over capital, use of results based on the work contributed, promotion of solidarity, and independence from public authorities.
4. It lists the entities that belong to the social economy, such as cooperatives, mutual societies, foundations, associations with economic activity, worker-owned companies, integration companies, special employment centers, fishermen's guilds and agricultural transformation companies. Other entities may be included in a public catalog prepared by the Ministry of Labor and Immigration.
5. It recognizes promoting the social economy as a task of general interest and sets goals for public authorities, such as simplifying procedures, supporting training and boosting employment for women, young people and the long-term unemployed.
6. It regulates the Council for the Promotion of the Social Economy as an advisory and consultative body, and ONCE is recognized as a singular social economy entity, with its status as a public law corporation.

Who it affects

• Cooperatives, mutual societies, foundations, associations, worker-owned companies and other entities in the sector: They are recognized as part of the social economy and must follow the law's guiding principles.
• Entrepreneurs and people who want to create social economy entities: Public authorities must help them start their activity, with simpler procedures.
• State-wide intersectoral confederations: They can gain representation in institutional bodies if they meet the representativeness requirements.
• ONCE: It is expressly recognized as a singular social economy entity and a public law corporation.
• The Government and the Ministry of Labor and Immigration: They must prepare the entity catalog, guarantee statistical information and approve a support program within six months.

Words worth knowing

Economía social (social economy)

A group of private companies and entities that put people and the social purpose before capital.

Corporación de derecho público (public law corporation)

An organization created or recognized by law that acts with a public character, even though it is not a government administration.

Órgano asesor y consultivo (advisory and consultative body)

A body that gives reports and advice, but does not decide or command on its own.

Sociedad laboral (worker-owned company)

A company whose members are, for the most part, its own workers.

Empresa de inserción (integration company)

A company that helps people at risk of social exclusion enter the workforce.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries