The Proximity and Social Economy Ecosystem plays a pivotal role in fostering sustainable development across both rural and urban areas. By leveraging the unique strengths of social enterprises, cooperatives, and other forms of social economy entities, communities can address pressing challenges such as depopulation, climate change, digital exclusion, and social inequality. Let's explore actionable policies that align with the European Union’s vision for the Green and Digital Transition, emphasising the transformative potential of social enterprises and cooperatives in creating resilient, inclusive, and innovative ecosystems.

Bridging Rural and Urban Wellbeing through Collaborative Governance

One of the key recommendations from the Council Recommendation on Developing Social Economy Framework Conditions (C/2023/1344) is the establishment of multi-level governance systems that empower local leaders and organisations. Such systems have the capacity to recognise the critical role of social economy entities in driving transformation at the grassroots level. For instance, initiatives like the Rural Pact encourage collaboration between national, regional, and local authorities to design strategies tailored to the specific needs of rural and urban areas.

In practice, this means supporting local champions—individuals or organisations—who can mobilise communities around shared goals. Examples include the Catalan Landscape Charter, which enables local stakeholders to work together in order to improve the landscape and turn it into an asset for the future, or the Dutch Smart Village of Hilvarenbeek, where a network of local development advisers supports citizen-led projects. 

Strengthening Capacity Building for Social Economy Entities

Capacity building is essential for enabling social enterprises and cooperatives to thrive. The EESC Opinion on Taxation Frameworks for Social Economy Entities underscores the need for tailored training programs, financial literacy workshops, and peer learning opportunities. Such initiatives not only equip social economy actors with the skills needed to navigate complex regulatory environments but also enhance their ability to innovate and scale up operations.

For example, the EU-funded Smart Rural 21 project has demonstrated how targeted capacity-building measures can help rural communities develop Smart Village strategies. Similarly, the LEADER Toolkit provides practical guidance for forming Local Action Groups (LAGs) that integrate diverse stakeholders into decision-making processes. 

Harnessing Public Procurement for Social Impact

Public procurement represents a powerful tool for advancing the social economy. According to the EESC Opinion on Public Procurement and Social Economy Enterprises, contracting authorities should adopt innovative criteria beyond price, prioritising social, environmental, and territorial proximity values. This approach ensures that social enterprises and cooperatives are not disadvantaged in competitive bidding processes.

The Buying for Social Impact initiative exemplifies how integrating social clauses into public procurement can drive positive change. In France, the Territoires Zéro Chômeurs de Longue Durée programme demonstrates how non-profit organisations can employ marginalised groups to deliver community-based services. 

Advancing the Green and Digital Transitions

Social enterprises and cooperatives are uniquely positioned to lead the Green and Digital Transitions in both rural and urban settings. As highlighted in the Transition Pathway for Proximity and Social Economy Industrial Ecosystem, these entities often operate close to communities, addressing localised challenges while promoting systemic change. Renewable energy cooperatives, for example, empower citizens to participate in the clean energy transition, while digital cooperatives bridge the gap in underserved areas.

Additionally, successful projects — such as the Sun Land Foundation in Bulgaria, which uses art and culture to revitalise depopulated villages — can inspire further action.

Fostering Access to Funding and Reducing Bureaucracy

Access to flexible funding remains a significant barrier for many social economy entities. The Council Recommendation encourages Member States to simplify administrative procedures and promote instruments like Simplified Cost Options (SCOs). Finland’s experience with lump-sum payments under SCOs has proven effective in encouraging small-scale beneficiaries to pursue innovative projects without excessive red tape.

Moreover, the creation of dedicated sections on platforms like the Social Economy Gateway and the EU Proximity and Social Economy Platform can facilitate knowledge exchange and best practices in socially responsible public procurement.

Monitoring Progress and Sharing Best Practices

Finally, monitoring and evaluation are crucial for ensuring the long-term success of the Proximity and Social Economy Ecosystem. The Council Recommendation calls for regular reporting by Member States, supported by robust data collection and analysis. Initiatives like the European Social Economy Gateway and the EU PSE Platform can provide valuable resources for tracking progress and disseminating lessons learned.

To conclude: Together, we can build thriving communities rooted in sustainability, equity, and resilience. Through collaborative governance, capacity building, strategic utilisation of Public Procurement and Socially Responsible Public Procurement, and support for the Green and Digital Transitions, social enterprises and cooperatives can become catalysts for positive change in both rural and urban areas.