Skip to main content
European Union flag
EU Proximity and Social Economy Platform

Understanding the Proximity and Social Economy Industrial Ecosystem

Library

14 March 2025

Understanding the Proximity and Social Economy Industrial Ecosystem

Financing the ecosystem

Partnerships

Regenerative Green Transition

+66 more

Login / create an account to be able to react

  • 18

The European Commission’s 2024 report on the proximity highlights the economic resilience of short supply chains, the social impact of inclusive labour markets, and the environmental benefits of circular business models. With EU-backed policies and funding mechanisms, the proximity economy is set to drive a greener, more digital, and community-centred economic transformation. 

Authors

Editorial Team (EY)

Topics
Geographical descriptors

Albania

Armenia

Austria

Belgium

Bosnia and Herzegovina

Bulgaria

Croatia

Cyprus

Czechia

Denmark

Estonia

EU-27

Finland

France

Georgia

Germany

Greece

Hungary

Iceland

Ireland

Italy

Kosovo

Latvia

Liechtenstein

Lithuania

Luxembourg

Malta

Moldova

Montenegro

Netherlands

North Macedonia

Norway

Poland

Portugal

Romania

Serbia

Slovakia

Slovenia

Spain

Sweden

Switzerland

Türkiye

Ukraine

Organisation Type

EU institutions

  • Thematic area

    • Financing the ecosystem

    • Partnerships

    • Regenerative Green Transition

    • Skills

    • Transformative Digital Transition

    • Urban and Rural Wellbeing

    • Working conditions and governance

  • Interlinkages with other sectors

    • Proximity and social economy

    • Agri-food

    • Construction

    • Cultural and creative industries

    • Digital

    • Electronics

    • Energy intensive industries

    • Energy-renewables

    • Health

    • Mobility, transport, automotive

    • Retail

    • Textile

    • Tourism

    • Aerospace and defence

  • Action areas and keywords

    • 15-minute city

    • Access to Finance

    • Access to technology

    • Addressing capacity and skills gap

    • Advancing gender equality and safety at work

    • Blue Economy

    • Boosting digital skills by - and in the social economy

    • Buy social

    • Certification, labelling and self-regulation

    • Circular Economy

    • Clusters (including Cluster of social and ecological innovation)

    • Corporate social responsibility (CSR)

    • Creating financial incentives and supportive regulation for green and circular social economy business models

    • Data Maturity and data driven business models

    • Data sharing, Data management & Code of Conduct

    • Digital Platforms

    • Digital social innovation

    • Economic democracy

    • Education

    • Future workplaces

    • Greening infrastructures and business operations

    • Housing

    • ICP rights & workers involvement

    • Industrial relation and social dialogue

    • Innovation

    • Innovation as enabler for green transition and business development in the social economy

    • Internationalisation

    • Local employment

    • Local Green Deals, green business communities and citizens’ initiatives

    • Local Markets

    • Micro mobility

    • New business models

    • New business models – the platform economy

    • New European Bauhaus

    • Other action area

    • Public and private tech partnerships and support

    • Reinforcing Business to Business collaboration for greener and circular value chains

    • Responsible (Public) Procurement

    • Smart mobility

    • Social Finance

    • Socially oriented territorial regeneration

    • Strategy for Data

    • Supporting Digital Social Innovation & Tech for Good entrepreneurship

    • Sustainable Finance

    • Tech for Good

  • Ecosystem focus

    • Proximity economy

    • Social economy

  • Scope of activity

    • International

Share

The report ‘Mapping the Proximity and Social Economy Industrial Ecosystem’, published by the European Commission in 2024, provides a comprehensive analysis of the proximity and social economy - a sector that prioritises local value chains, social inclusion, and sustainable development. This report highlights the key economic, social, and environmental contributions of the proximity economy, outlining the role of cooperatives, social enterprises, and local businesses in fostering community-driven economic resilience. It also examines the policy landscape, practical applications, and future directions, offering insights for policymakers, businesses, and civil society organisations.

Key themes as per the report:  

Local value chains & economic resilience

The proximity economy strengthens local economic networks by promoting short supply chains, decentralised production, and community-based entrepreneurship. This model reduces dependency on global markets and enhances regional self-sufficiency.

Social inclusion & employment

Social economy actors play a crucial role in job creation, especially for marginalised and vulnerable groups. The report highlights their contribution to inclusive labour markets, fair working conditions, and skills development.

Sustainability & circular economy

By integrating circular economy principles, social enterprises emphasise resource efficiency, waste reduction, and sustainable business practices. This approach aligns with the European Green Deal, supporting a greener, more resilient economy.

Digital transformation & innovation

Digital tools are reshaping the social economy by improving access to technology, enhancing data management, and fostering digital inclusion. The report identifies data-sharing frameworks and responsible tech use as key enablers of sector-wide growth.

Policy & funding support

The EU has introduced targeted policies, financial instruments, and legal frameworks to strengthen the proximity economy. These include social impact investing, ethical finance models, and responsible public procurement strategies.

Across Europe,  the report also highlights successful proximity economy initiatives, which showcase how cities are leveraging local engagement, sustainability, and social innovation to build resilient economies

The proximity and social economy ecosystem offers a sustainable, inclusive, and community-centred economic model that aligns with the EU’s long-term vision for green and digital transitions. By supporting local businesses, social enterprises, and collaborative governance models, this framework fosters economic resilience and social cohesion. As policymakers and stakeholders continue to refine strategies, the proximity economy stands as a transformative force for sustainable development across Europe. 

Documents

Benchmarking the socio-economic performance of the EU social economy
English
(9.62 MB - PDF)
Download
No votes yet

Comments (0)

See also

-

  • 58

Comment
0
  • Articles
  • 24 Mar 2025

PSE Platform Ambassador highlight: Chloé Gallien, Groupe SOS

This article is part of a series of introductory pieces for the Ambassadors of the EU Proximity and Social Economy Platform. Ambassadors play a pivotal...
Categories
Partnerships Regenerative Green Transition Skills +68 more
Did you find this useful? Please rate this page or, give us more feedback