The new report on social entrepreneurship shows how the social economy can be strengthened in Sweden. The biggest obstacle is a lack of understanding of social enterprises among banks, investors, and support organizations. Social enterprises are primarily seeking visibility, financial support, and policy changes.
The EU has prioritized social innovation through several policy initiatives—such as an action plan for the social economy. Sweden, however, has fallen behind in terms of policy efforts since the national strategy for social entrepreneurship and social innovation concluded in 2020.
The Swedish sub-report of the European Social Enterprise Monitor 2023–2024 was launched in Luleå on October 24. The survey was initiated by the umbrella organization Euclid Network in 2021, and Forum for Social Innovation Sweden responsible for the Swedish survey.
Forum for Social Innovation Sweden contribute research-based knowledge through data collection
The purpose of the European Social Enterprise Monitor is to help politicians, funders, and policymakers better understand the challenges and needs of social entrepreneurs. TThe study aims to point the way forward for strengthening the social economy in Sweden.
– O“Our ambition in leading this work is to drive the development of data collection and research-based knowledge to contribute to the research field and a shared understanding of the challenges and needs of social enterprises,” says Sara Bjärstorp, Executive Director of Forum for Social Innovation Sweden.
Collaborated with a number of organizations
For this round of research, Forum for Social Innovation Sweden has Forum for Social Innovation Sweden with a number of organizations: Ashoka Nordic, several regional Coompanion offices, Effektfullt, Fremia, Mikrofonden, NÄTVERKET – Idéburen sektor Skåne, the Partnership for Social Innovation in Örebro County, Reach for Change, Social Entrepreneurship Sweden, and Skoopi.
“Collaboration is key to ensuring that the study’s findings are firmly rooted in Sweden’s social entrepreneurship ecosystem—based on our shared knowledge,” says Gloria-Karin López, project manager at Forum for Social Innovation Sweden, who has led the mapping effort.
A Snapshot of Social Entrepreneurship in Sweden
The new report is based on responses from 110 social enterprises. The report provides a snapshot of how the 110 Swedish social enterprises that responded view themselves, their operations, and the support available to social entrepreneurs, as well as the obstacles and opportunities for social entrepreneurship in Sweden.
Social enterprises are primarily interested in creating social or environmental benefits for society
Social enterprises have one thing in common. Regardless of their organizational structure, they are all driven by a desire to create social and/or environmental benefits for society.
“Personal financial gain for partners or members is not the primary focus. The goal of the initiative is to contribute to a socially and environmentally sustainable society. Financial income is seen as a means, not an end,” says Eugenia Segerstedt, a researcher in social sustainability and social innovation at Luleå University of Technology and project manager at Forum for Social Innovation Sweden.
Social enterprises operate across a wide range of industries and sectors
The social enterprises covered in this report span a wide range of industries and sectors, with some operating in multiple sectors. One-third of the enterprises are active in health, healthcare, social services, and social work. This is also the most common sector for social enterprises at the European level. About one-fifth operate in other service industries.
Social enterprises also have a diverse workforce. The majority report that they employ people with disabilities and those with immigrant backgrounds.
Operates primarily at the local or regional level
Sweden’s social entrepreneurs operate closest to their target groups, primarily at the local level and then at the regional level. At the same time, they have ties to global and national actors and networks. Among the sources of revenue for these businesses, sales to the public sector stand out as the most common. In second place are sales to consumers/private individuals, followed by sales to for-profit companies.
Lack of understanding is the biggest obstacle for social enterprises
The three most common barriers faced by social enterprises—and the top three barriers that pose the greatest obstacles—are “a lack of understanding and awareness of social enterprises among banks, investors, and support organizations.”
Social enterprises primarily seek the following types of support:
- visibility and awareness of social enterprises,
- access to financing and financial support, and
- advocating for changes in policy or legislation.
Significant potential for growth in strengthening social entrepreneurship in Sweden
“We hope that supporters of social entrepreneurship, funders, and policymakers will take these findings to heart and consider how they might contribute to strengthening the social economy in Sweden,” says Gloria-Karin López.
Read the European Social Enterprise Monitor 2023–2024 – a country report from Sweden
Learn more about the European Social Enterprise Monitor (ESEM) survey