The role and importance of social economy in the development of local community and economy, and regional convergence

Abstract

The development of local economy cannot be separated from national economic policy: it is important that the government should encourage and support local initiatives. At the same time, the cooperation of local actors should contribute to accomplishing the aims of national economy. Social economy is a segment of national economy and has a supplementary function. It undertakes lobbying activities related to social integration, equal opportunities and environmental sustainability. By means of these activities, social economy attempts to enforce the eco-social model under the conditions of market economy. Social economic actions require the long-term cooperation of actors, based on common interests. Additionally, they provide opportunities for employment and income- earning even for “non-competing” groups. The role of local communities (local societies) is essential in working social economy. Employment-oriented social economy (alternative or community employment) is based on local needs, and incorporates the following characteristic areas: social services, urban management, IT and cultural services, farming and landscape maintenance, processing of agricultural and forestry products, traditional handicrafts and services associated with rural tourism and eco- tourism. Apart from their economic performance, local social enterprises have an essential role in value creation, mediation and preservation.