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Home > News > The values of the companies and entities of Social Economy contribute to the society 6.229 million annual euros

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The values of the companies and entities of Social Economy contribute to the society 6.229 million annual euros

18 12 2019

The Spanish Business Confederation of the Social Economy (CEPES) has presented the study 'The Analysis of the Socio-economic Impact of the values and principles of the Social Economy in Spain', with the aim of making visible and quantifying, with official sources, the differential contribution that , through a more sustainable economic growth, the company model of the Social Economy makes the whole society. This differential behavior is evident in social and territorial cohesion. This study is an international pioneer.

• This follows from a Study presented in Madrid by CEPES in which it is intended to verify and quantify the differential contribution of the Social Economy company model in the field of social cohesion and its impact on employment and territorial cohesion.

• The study answers three questions: Does the Social Economy show a different behavior from that of commercial companies? If so, how do these differences affect society? And finally, how to measure these effects in monetary units?

• In monetary terms, the Social Economy contributes 6,229 million euros per year in benefits for society, 3,930 million euros per year in salary income for groups of difficult employability and 1,770 million euros per year in benefits for Public Administrations.

• If the Social Economy companies lost their values, and behaved like the rest of the companies, more than 172,483 people from groups of difficult employability would lose a job, about 125,000 workers would lose their stable employment relationship annually and 54,236 jobs would be lost in Rural Spain

• The report, co-financed by CEPES, the Ministry of Labor, Migration and Social Security, CAJAMAR, MONDRAGÓN and FUNDACIÓN ESPRIU, has been prepared by Abay Analysts on the Continuous Sample of Work Lives, and is available at the following link :

 

Madrid, December 19, 2019.- The Spanish Business Confederation of the Social Economy (CEPES) has presented the 'Analysis of the socioeconomic impact of the values and principles of the Social Economy in Spain' , with the objective of making visible and quantifying, with official sources the differential contribution that, through more sustainable economic growth, the Social Economy business model makes to society as a whole. This differential behavior is evident in social and territorial cohesion.

The president of CEPES, Juan Antonio Pedreño, points out that this study answers three questions: do social economy companies show a different behavior from that of commercial companies? If so, how do these differences affect society? Finally, how to measure these effects in monetary units? Pedreño also stressed that the study, internationally pioneering, presents a hypothesis of what would happen if Social Economy companies lose their values and principles, and start to behave like commercial companies, mainly in three aspects: the hiring of certain groups with difficulties of access to employment, working conditions of its templates and geographical location.

This detailed report, co-financed by CEPES, the Ministry of Labor, Migration and Social Security, by CAJAMAR, MONDRAGÓN and the ESPRIU FOUNDATION, shows that the Social Economy brings total net benefits (direct and indirect) to society, estimated at 6,229 million euros. annual euros, of which 71.7% is linked to the occupation of groups with difficulties in accessing employment and 16.9% to greater employment stability.

By agents, the main beneficiaries are the groups with the greatest difficulties in accessing employment, which receive 3,930 million euros per year in salary income. Second, there are the Public Administrations, with 1,770 million euros per year of direct and indirect benefits (expenses not incurred) and, finally, the companies themselves, which obtain a net benefit of about 528 million euros per year.

 

THE ECSOCIAL ONOMY IN THE SPANISH PRODUCTIVE FABRIC

The Study includes in its chapter II a development of the Spanish productive fabric, where it is revealed that 6 out of every 100 companies and entities of the private sector of the Spanish Economy belong to the Social Economy.

In relation to the development of the Social Economy by Autonomous Communities, the high development that it has in the Valencian Community, the Region of Murcia, Andalusia or the Basque Country stands out. On the other hand, it still has lower levels of employment than expected, taking into account its size and economic dynamism, in the Community of Madrid, Catalonia and the Canary Islands.

Regarding the presence of the Social Economy in the economic sectors, the study specifies that this business model has a relevant weight in the social services sector (41.2%), artistic and recreational activities (31.7%), education (24.3 %), of agriculture (13%) and energy sector (10.1%).

 

The Social Economy contributes to inclusive growth and the reduction of inequalities

“The behavior of companies and entities of the Social Economy is different from commercial companies, and it translates into more inclusive economic growth and the reduction of inequalities. In addition, they are companies with a strong commitment to the territory, which causes an important contribution to social cohesion and territorial cohesion, ”said Pedreño.

The effects on social cohesion focus on four areas: occupation of groups with difficulties in accessing employment, job stability, equal opportunities, and the provision of social services and education services.

The results obtained confirm the existence of a differential behavior that generates social value through:

1. Creation of inclusive employment . The Social Economy incorporates, to a much greater extent than the commercial economy, groups of workers with specific difficulties of access to employment such as women over 45, people over 55, people with disabilities, people in situations or at risk of social exclusion and people of low qualification.

2. Higher levels of job stability.

3. Lower wage gap. Salary levels are much more equal. The lower salary dispersion is mainly due to greater containment in senior management salaries and high qualification (salary higher than the average global salary by 65%, while in the commercial economy this difference is 102.0%).

4. Higher levels of equality. This is shown by the best results obtained in different dimensions of the same as the gender wage gaps, which are clearly smaller; diversity in management, with greater incorporation of women and people with disabilities; or the possibilities of reconciling a better family and professional life.

5. Expansion of the private offer of social services and education . The productive specialization of the Social Economy in services linked to the dependence and care of the elderly and disabled is significant. The Social Economy represents 43.5% of the total supply of these services and increases to 59.3% in social services without accommodation. In educational services it also has a relatively high presence (20.5% of the offer of these services).

 

THE SOCIAL ECONOMY HAS A DECISIVE WEIGHT IN RURAL SPAIN

The analysis confirms the greater relative presence of the Social Economy in intermediate cities and rural areas, and its significantcontribution to the creation of the business and employment fabric, to the competitiveness of local economies and to the fixing of population in this area:

1. The Social Economy is mostly located in municipalities with less than 40,000 inhabitants (60.2% of companies and 54.6% of their workers). In commercial companies these percentages are invested and both they and their workers are mostly located in the urban environment.

2. It has important effects on the rural economy and a significant part of it is linked to it.

A .- Creation of activity and employment: 7% of rural enterprises and institutions and 5.2% of rural employment belong to the Social Economy.

b.- The Social Economy contribution to intermediate cities and rural areas is also channeled through entrepreneurship . If only the youngest companies are considered, 47.4% of Social Economy companies are located in intermediate cities and rural areas and 52.6% in large cities. In the case of the mercantile economy, these percentages are 35.8% and 64.2% respectively.

c.- The sectoral distribution of social economy companies also shows greater dispersion, thus favoring the diversification of the rural economy.

d.- It improves the competitiveness of rural economies through the development of certain branches that allow a better use of potentialities or bring an offer of social and educational services that is vital to stop the loss of population. The importance of the Social Economy in agrifood branches stands out (53.2% in the manufacture of vegetable and animal oils and fats, 28.9% in the manufacture of animal feed products; 21.9% in the manufacture of beverages and 13.6% in the processing and preservation of fruits and vegetables). Also, in education and in dependency services.

e.- Combat depopulation . The contribution to rural areas is supported by other aspects that have a positive impact on the decision to maintain residence in these areas, such as employment stability, which is also greater in social economy companies.

 

EMPLOYMENT IMPACT

In order to approximate the principles and values of the Social Economy, the study contemplates a hypothesis in which the Social Economy companies lose their “principles” and start to behave like commercial companies in topics such as hiring, specialization or geographical location.

The impact of the principles of the Social Economy, what would happen if it behaved like the Mercantile Economy, on employment, is specified in the following points:

1. Less inclusive employment. More than 172,000 workers belonging to a group with difficulty accessing the occupation would lose their jobs. Of these, 86,266 would be people with disabilities, 60,000 low-skilled workers, 21,201 over 55, 3,436 people in a situation of social exclusion and 3,027 women over 45.

2. Less stability. Nearly 125,000 workers who have enjoyed continuous periods of employment in the social market economy would have one or more experiences.Unemployment. Of these, more than half would be self-employed (partners of Social Economy companies).

3. Diversity in companies would be reduced. A smaller number of workers would be expelled from management positions and high qualifications. More than 1,600 workers usually underrepresented in the highest positions of the companies would stop occupying these positions (about 1,100 women and 600 people with disabilities).

4. Lower reconciliation of work and personal life . A year, more than 2,600 workers who currently enjoy leave of absence for the care of ascendants or descendants would not opt for these periods.

In the territorial area , about 55,000 would be lost in rural areas and about 141,000 people could move to urban areas.

 

PRESENTATION OF THE REPORT

In the presentation of the report, the Director General of Autonomous Labor, Social Economy and CSR of the Ministry of Labor, Migration and Social Security, María Antonia Pérez León ; the president of CEPES, Juan Antonio Pedreño , and the research team of Abay Analysts, Maribel Martínez and Belén Castro .

Pérez León highlighted “the importance and novelty of this report that once again places the Social Economy as a world reference”. In addition, he added that "this analysis allows us to know firsthand statistical data that show the important impact of this business model, not only in the Spanish socio-economic scenario, but also in the implementation of the 2030 Agenda."

Pedreño showed “his satisfaction with the results of this study, which is an update of the one carried out in 2011, and which is a scientific tool that supports the institutional demands of new public policies in favor of the Social Economy, based on the empirical finding of its social and territorial contributions ”.

 

METHODOLOGY

The study conducted by Abay Analysts, employs a methodology applied to the review and measurement of the different effects that this study frames in the group of impact analysis with microdata, counterfactual and quantitative techniques, some of the most complete for impact evaluation. Thus, the method of measuring effects and their quantification is supported by large samples for both the Social Economy and the different control groups that are established. In initial samples of 694,014 employed workers and 235,845 employer companies, 9,125 Social Economy entities (4,452 social market economy) and 28,042 employed workers (13,688 in the social market economy) have been identified. From these subsamples, control groups (with companies and workers in the commercial economy) of similar size have been developed. The sizes of these subsamples ensure their representativeness and the robustness of the analysis.

The types of entities that are part of the social economy are: cooperatives, mutual societies, foundations and associations that carry out economic activity, labor societies, insertion companies, special employment centers, fishermen's associations, agrarian transformation societies and singular entities created by specific norms that are governed by the principles established in Law 5/2011 of Social Economy.