(Focuses on demographic change, care gaps, and the role of social economy models in providing people-centred solutions). Europe is under the pressure of increasing ageing of its population, mounting care demand with a decreasing workforce, and escalating cost pressures. In the present day, caring is the reason behind almost one in every three Europeans, which highlights the burden on families, the labour market, and the welfare systems. It is on this basis that social economy organisations are being increasingly considered as vital pillars of providing low-cost, quality, and people-focused services.

The social economy in the European Union alone has a population of over 4.3 million organizations with approximately 11.5 million people, 6.3 per cent of the total labor force, and an annual turnover of over EUR 900 billion according to a joint report by OECD and the European Commission. These organisations, among others, social enterprises, co-operatives, associations, and mutual societies, reinvest surpluses into social missions and have participatory models of governance, making communities more resilient and socially cohesive. The report points to care and housing as two of the priority areas where the social economy contribution has been instrumental. Social economy providers supplement public and private care provider services through innovative, locally based interventions that can assist with ageing and deliver autonomy, integration of health and social services, as well as enhance the working conditions of care workers. Non-profit associations and co-operatives provide long-term affordable housing in the form of housing and social support, energy-efficient design, and community involvement in housing. Such entities in various EU countries take up a large proportion of the national stock of residential buildings.

In addition to service provision, the social economy has been shown to provide sustainable competitiveness through the provision of good jobs, innovativeness, and territorial cohesion in both urban and rural regions. This strength in times of crisis, especially the COVID-19 pandemic, has also proved its strategic value. Nevertheless, as the report points out, the visibility is limited, regulatory barriers are also present, financing is an issue, and skills are also scarce in the sector to drive its growth. To realize its full potential, the OECD and the EU demand greater institutional acknowledgment, customized business service, and consistent tax regimes. This will lead to Europe’s inclusive growth, social wellness, and long-term prosperity