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 government should encourage and support local initiatives, at the same time the cooperation of local actors must contribute to accomplish the aims of national economy. Social economy is a segment of national economy with a supplementary function. It undertakes lobbying  activities related to social integration, equal opportunities and environmental sustainability. By means of these, social economy attempts to enforce the eco-social model under the conditions of market economy. Social economic actions require long-term cooperation of actors, based on common interests. Additionally, they provide opportunities of 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.