In a messy world, there is not much popular sense about that thing called the ‘economy’. Some never consider it, some are happy to let the ‘free market’ do its thing, and others are well aware that our current economic system is broken. But there is an alternative – the social economy. And we’ve all got a role to play in helping it grow.  

Thinking about the economy and why it’s broken

‘Economies’ are made up of a lot of elements, and involve all of us. The owners of business. The shareholders of business. The workers in the business. The customers who buy products from businesses.

For some the economy is never talked about, just lived with while mindlessly accumulating goods. For some it is political. For others it is a thing made by ‘them’ that affects ‘me’. Who the ‘them’ is remains a mystery, but ‘they’ are the reason it’s not working and I won’t vote for ‘them’.

For those who like Adam Smith it’s about the ‘invisible hand’ and for those who have never heard of Adam Smith it’s about what’s on the television tonight.

For some it’s about free markets. As long as it all leads to profit then the market should be left to its own devices. Everyone benefits. Nobody bludges. Hard work leads to hard profits. For the 1% it is all ‘mine’ to spend.

And for some it’s about living with the effects of austerity. Because the current economic system prevalent in the western world is broken. In-work poverty, child poverty and massive global inequality, and the marketization of education, health care, public transport and housing are leading to reduced opportunities. It’s the outcome of the last 30 years of market fundamentalism in the UK, USA and Australia.

There is an alternative – the social economy

The social economy has been growing now for some years.

For many in our neoliberal world it is abhorrent when the word ‘social’ is associated in any way with the word ‘economy’. There is plenty of opposition and misunderstanding – it all sounds too ‘political’ and isn’t ‘social’ part of that word ‘social’-ism (short-hand for communist)?

Despite this, and its limitation at the outset to social enterprises (a business trading for a social purpose), the ‘social economy’ is maturing and becoming much more than yet another ‘bloody coffee cart social enterprise’ (although we can’t get enough good coffee is my way of thinking).

This social economy has – like all economic systems – a set of beliefs in the broadest sense.

At its heart is people and profit, or people before profit – not profit before people.

Just like in the market focussed economy, businesses in the social economy seek to make a profit. The difference being that in a social economy, the profit gained goes toward meeting social objectives, not primarily toward generating individual wealth. It’s that last bit which makes this type of economy different. Wealth is more evenly distributed with direct benefit for the many, not just the few.

By prioritising social objectives, the social economy contributes in an innovative way to tackling social, economic and environmental needs in society that have been overlooked or inadequately addressed by the private or public sectors.

The social economyincludes social enterprises, cooperatives, owner employed businesses with a social purpose, as well as self-employed women and men. It combines everything from the supply chain through to the end customer into one complete mosaic – a social economy.

We can all help the social economy to grow

Supporting the social economy means purchasing with a purpose and well as selling for a purpose. A simple example is choosing to purchase from a social enterprise even though that cost is greater than in the general market. The purchasing provides the economic stimulus to drive the social economy with its social objectives generating greater benefit for more and more people not just the few.

The Dragonfly Collective has been working with Caritas Westminster, and with its European partners, to help build the social economy and develop a range of new social enterprises in London., that provide social purchase choices for people looking for everything from training, to co-working space to painting and decorating.

While Adam Smith may give this a vague if not slight nod, Friedrich Hayek would choke on his Viennese roll. But that’s another story and the exact opposite of the social economy!

There are plenty of opportunities to engage with the social economy. Who you buy from as well as what you buy can make a huge difference.

There are social economy businesses everywhere. See what you can find in your community!