The state of the social economy in Luxembourg
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1 The state of the social economy in Luxembourg Chiara Peroni Research Division, STATEC Establishing Satellite Accounts for the Social Economy Wednesday 14 th October, /17
2 Introduction The social economy has increasing relevance in modern societies characterised by social changes and crisis economies. This presentation: knowledge of the state of the social economy in Luxembourg. Definition and first assessment of economic contribution. 2/17
3 A definition of social enterprise A social enterprise is a private and autonomous organisation providing goods or services with an explicit aim to benefit the community, owned or managed by a group of citizens in which the material interest of investors is subject to limits (OECD, 2009). From definition to measurement 3/17
4 Our solution Social enterprises are economic activities with specific governance and pursuing social aims; We use two criteria: 1. social mission: economic activity Santé et action sociale and 2. organization and governance: cooperative, non-profit, mutual benefit organisations, foundations, cultural and sport associations. Excluded: administration publique, etablissement public, syndicat de communes, organisation culturelle de droit publique, etablissement sanitaire de droit publique, trade unions, religious and political organisations. 4/17
5 A synthesis of our empirical approach: Legal form Total Others Coop, asbl, etc. Santé et action sociale Other economic activities Source: Business Register (2012). Total Santé et action sociale: direct provision of care, e.g. creche and elderly care (N = 179); Coop, asbl, etc. providing care (N = 183); Coop, asbl, etc. characterised by social mission or democratic governance (N = 702); Other economic activities: services collectifs, sociaux et personnels; immobilier, location et services aux entreprises; transports et communications; hôtels et restaurants; commerce; agricolture. 5/17
6 Some demography in 2012 Clervaux 3% 3% 6% 3% 0% 1%3% Clervaux Diekirch Wiltz Redange Vianden Diekirch Mersch Echternach 49% 3% 4% 6% Redange Vianden Wiltz Echternach Remich Grevenmacher Capellen Esch sur Alzette 20% Luxembourg Grevenmacher Mersch Capellen Luxembourg (208,509] (45,208] (34,45] (27,34] [3,27] Esch sur Alz Remich (a) Number of firms (b) Share on total social enterprises in Luxembourg. On average in 2012 there were 3 social enterprises every 100 firms employing 27,751 wage earners, including full- and part-time contracts. 6/17
7 The weight of creches and elderly houses 21% 79% creche or helderly houses social enterprises 7/17
8 Size of social enterprises In 2012, in Luxembourg there were enterprises. Out of these, we identified 1064 social enterprises (3.2% of the total). Table: Size of social enterprises. Size of firm Social economy (%) micro (1-10 salariés) 71.1 small (10-49 salariés) 20.0 medium ( salariés) 6.8 large (250 et plus salariés) 2.2 8/17
9 Women: the backbone of social enterprises Women represent 70% of total wage-earners in the social economy; They are 40% in the aggregate economy; Share of women with part-time contract decreased sensibly from 31% to 22%; In the aggregate, the share of part-time women remained at 10.8%; Share of full-time women increased from 36.6% to 47.5%. In the same period, increase from 26,1% to 29.2% in the aggregate. Note: Full-time contracts grew by 16% per year (4 times higher than aggregate). 9/17
10 Social enterprises over time These numbers are the result of a growth rate of about 3.4% each year. Total number of social enterprises In the same period, the number of firms in the Luxembourgian economy grew by 3.2% yearly. 10/17
11 Trend of wage-earners The share of wage-earners in the social economy raised from 4.5% in 2000 to about 8% of the total in % percent of total wage earners % 3.6% 6.1% 1.7% 0.89% creche or elderly houses social enterprises total Wage-earners employed in creche and elderly houses increased by 14.3% yearly. Those employed in other forms of social enterprises increased by 12.5% yearly. 11/17
12 Is this the result of social changes? The growth rate of creche and elderly houses is 117.6%. Other social enterprises grew by 32.2% from 2000 to Evolution of social enterprises (year 2000 = 100) social enterprises creche and elderly houses 12/17
13 Reliability and information Reliability Empirical test: Survey of the Social and Solidarity Economy (2013) supports our identification strategy and finds: 71% of the respondents considered themselves to be part of the SSE; 91% stated their social mission; Surveyed enterprises employ mostly women. Information What do these data tell us? 1. contribution to the economy; 2. contribution to well-being and social cohesion. 13/17
14 Conclusions Social enterprises promoted employment and women participation to the labour force; Result partly explained by growth of creche and elderly houses; Questions: Is this the result of structural or cyclical factors? What is the contribution to the economy? Need a more precise accounting of the social economy. Thanks to ULESS and... 14/17
15 Growth rates of full- and part-time contracts yearly Aggregate Social economy growth economy rates creche/eld.houses other s.e. all s.e. part-time 2.0% 7.0% 6.1% 6.3% full-time 4.1% 20.3% 16.0% 16.7% full-time contracts in the social economy grew by 16.7% yearly. In the aggregated economy, the growth rate was 4.1%. Part-time contracts in the social economy grew by 6.3% each year, whereas the growth rate in the aggregated economy was 2.0%. The difference is partly explained by the increase of creche and elderly houses. 15/17
16 The weight of creche and elderly houses in % 79% creche or helderly houses social enterprises 16/17
17 Social enterprises by legal form in 2012 private for profit cooperatives 4% 96% 100% associations charitable organizations 7% 4% 93% 96% creche or helderly houses social enterprises 17/17
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