The French Social and Solidarity Economy: A €488 Billion Giant Facing the Financing Wall

# The French Social and Solidarity Economy: A €488 Billion Giant Facing the Financing Wall

The social and solidarity economy (SSE) in France represents a major economic sector, generating a turnover of €487.7 billion and employing 2.59 million people. These figures, from the OECD's 2025 report on the social economy in Europe, highlight the considerable weight of this entrepreneurial model that combines economic activity with social utility. Rooted in a long historical tradition, the French SSE is distinguished by a robust institutional framework and a strong presence in key sectors such as social action and health. However, despite its dynamism and resilience, the sector faces structural challenges, particularly in terms of financing and professionalization, which could hinder its development and its potential for social and ecological transformation.

An Economic Heavyweight: 2.59 Million Employees and 10% of GDP

With 2.59 million employees and a turnover of €487.7 billion, the social and solidarity economy (SSE) is not a marginal sector in France. It represents 10% of the gross domestic product (GDP) and 14% of private employment, making it a pillar of the national economy [1]. The OECD's 2025 report on the social economy in Europe highlights this often-underestimated economic reality. The sector is made up of 1.22 million entities, of which 262,047 are employers, which testifies to its vitality and its capillarity throughout the country [1]. The added value of the SSE, although dating from 2012, already amounted to €89.9 billion, a figure that has likely increased since [1].

France, a Unique Model in Europe

France stands out from its European neighbors in the structure and weight of its social and solidarity economy. A comparison with Spain, Italy, and Belgium, also analyzed in the OECD report, puts the French model into perspective.

Source: OECD, Social Economy in Europe, 2025 [1, 2, 3, 4]

While France shows a significantly higher turnover and number of employees, this is partly due to a broader scope of the SSE and older legal and institutional recognition. Spain, with its 2011 law on the social economy, and Italy, with its 2016 reform of the "Third Sector," also have solid legal frameworks, but with different ecosystems of actors. Belgium, for its part, is characterized by a strong regionalization of powers in social economy matters, without a unified national definition [4].

Social Action, Health, and Integration: The Pillars of the SSE

The French social and solidarity economy is particularly present in sectors of activity with high social utility. Social action is the first of these, concentrating 59.5% of the sector's jobs, particularly through social and medico-social accommodation, home help, or structures for integration through economic activity (SIAE) [5]. The OECD report highlights that 39.2% of total SSE employment in France is in social services [1].

The health sector is also a major area of intervention for the SSE, particularly via mutual health insurance companies, but also care establishments and personal services. In Belgium, for comparison, human health services represent 69% of SSE employment, illustrating the importance of this sector for the social economy in Europe [4].

Integration, whether social or professional, is another fundamental mission of the SSE. Integration companies and establishments and services for assistance through work (ESAT) play a crucial role in the employment of people far from the labor market. Finally, new dynamics are emerging in sectors such as citizen energy, where renewable energy production cooperatives are developing, or the circular economy, where the SSE is a pioneer with two-thirds of reuse jobs [6].

Structured but Improvable Public Support

France benefits from one of the most developed institutional frameworks and public support policies for the SSE in the world. The 2014 framework law gave a legal definition to the SSE and strengthened its ecosystem. The existence of a delegated ministry for the SSE, the Higher Council for the SSE (CSESS), and the Regional Chambers of the SSE (CRESS) testifies to this institutional recognition [1].

Specific measures such as the "Socially Useful Social Enterprise" (ESUS) accreditation allow for the channeling of funding towards the most socially demanding companies. Local authorities, with regions and municipalities at the forefront, are also key players in supporting the SSE, with dedicated strategies and budgets. The city of Paris, for example, has a very active policy of supporting the SSE, as does the Île-de-France region, which has set up an investment fund of €35 million for the sector [1].

However, this public support is not without its limits. The Public Treasury report highlights the strong dependence of SSE structures on public funding, which makes them vulnerable to budgetary tensions [6]. The complexity of the schemes and the multiplicity of interlocutors can also be a brake for small structures.

The Financing Wall and the Challenge of Professionalization

Despite its economic weight and social utility, the SSE faces a major obstacle: financing. SSE companies have structural financial weaknesses, with median margins of 14.6% compared to 24.6% in the conventional economy, and low equity [6]. This situation is partly explained by their economic model, which favors the reinvestment of profits over the distribution of dividends.

Traditional funders are often unfamiliar with SSE models, which creates information asymmetries and hinders access to credit and investment. To overcome these difficulties, solidarity financing tools have been developed, such as solidarity employee savings funds (€18 billion in assets) or the channeling of part of regulated savings (Livret A and LDDS) towards the SSE, representing €9 billion [6].

The other major challenge for the SSE is that of professionalization. While the sector is increasingly attracting young graduates in search of meaning, it must continue to structure its training courses and strengthen the skills of its managers and employees. The management of an SSE company indeed requires a dual competence, both managerial and social, which is not always easy to find.

Conclusion

The social and solidarity economy in France is a sector of the future, carrying solutions to social and ecological crises. Its economic weight is now indisputable, and its solid institutional framework offers it significant development prospects. To unlock its full potential, however, the SSE must remove the obstacles to its financing and continue its professionalization efforts. The OECD report, by objectifying the contribution of the SSE to the economy and society, is a valuable tool for advocating for increased support for this entrepreneurial model that places people and the planet at the heart of its project.

References

[1] OECD (2025), Social Economy in Europe: France, OECD Publishing, Paris, https://www.oecd.org/en/publications/social-economy-in-europe_12970cca-en/france_78d81ea8-en.html

[2] OECD (2025), Social Economy in Europe: Spain, OECD Publishing, Paris, https://www.oecd.org/en/publications/social-economy-in-europe_12970cca-en/spain_7f4b7415-en.html

[3] OECD (2025), Social Economy in Europe: Italy, OECD Publishing, Paris, https://www.oecd.org/en/publications/social-economy-in-europe_12970cca-en/italy_b59ff4e5-en.html

[4] OECD (2025), Social Economy in Europe: Belgium, OECD Publishing, Paris, https://www.oecd.org/en/publications/social-economy-in-europe_12970cca-en/belgium_1cd734b0-en.html

[5] Avise (2023), Key figures of the SSE in France, https://www.avise.org/comprendre-ess/economie-sociale-solidaire-ess-contexte

[6] Directorate General of the Treasury (2025), The social and solidarity economy: a response to democratic, social and environmental challenges?, Trésor-Éco n°372, https://www.tresor.economie.gouv.fr/Articles/2025/10/23/l-economie-sociale-et-solidaire-une-reponse-aux-enjeux-democratiques-sociaux-et-environnementaux