Economic activities that pursue social values: Social Economy

With the rise of many social enterprises, the concept of 'social economy' is known more than before, but it is still unfamiliar. The social economy is a people-centered community, aimed at people rather than capital and profit, and the interests of society as a whole rather than the interests of individual organizations. In the social economy, there are various types of social economic models, such as social enterprises, cooperatives, fair trade, village enterprises, and self-support companies that come with the concept of words.

The above models produce goods and services for the community. And also put humanity and labor over capital. Many smartcity projects in Korea also guarantee the voluntary participation and strengthened authority of residents through village companies or social enterprises. This allows for autonomous management and operation which is not controlled by the government.

The types of social economy

There are four representative models of the social economy such as social enterprises, cooperatives, village enterprises, and self-help enterprises. As the characteristics and roles are different, the forms of social economy in our society are very diverse.

1. Social Enterprises: An intermediary form between a for-profit and a non-profit company that conducts sales activities such as the production and sale of goods and services, while pursuing social goals first.
2. Cooperatives: An organization in which members who gather for the same purpose co-operate some or all of the purchase, production, sale, and consumption of goods.
3. Village Enterprises: It is a system for local residents to use the local resources to make profitable business, thereby creating income and jobs, and realizing the benefits of the local communities.
4. Self-help Enterprises: A company that operates one or more beneficiaries or self-supporting businesses in the form of cooperatives or joint ventures by mutual cooperation.

Why is it important?

Paul Ladd said that “The social economy prioritizes social and environmental objectives over profits, emphasizes the importance of ethics in economic activities, and emphasizes the importance of ethics in economic activities. It's a move to regain control. ” in 2018 Social Economy Leaders Forum.

In this way, the problems of local communities can be cooperatively solved by the residents themselves, and the wage gap between social and economic organizations such as cooperatives is extremely small, and jobs and welfare can be satisfied at the same time. It is an economic model that improves equity of opportunity and enables the effects of economic growth to reach more people.

Projects that create a “people-centered” smartcity are pursuing cooperation and engagement growth centered on people. Citizens and companies are participating in the development and operation of smartcities, discussing various ways to create business that can solve social problems and revitalize the urban economy from the perspective of the social economy.