Social economy enterprises have a longer lifespan than traditional businesses, according to the Thursday report from the Social Economy Observatory, which studies the social economy in Wallonia and Brussels.
Social enterprises are organisations or companies whose main goal is to have a social impact rather than make a profit. The median age of these enterprises is 25 years compared to 14 years for a conventional business.
This trend is evident in data from the past 25 years in Belgium. Of the businesses founded in 2000, 25% of social economy enterprises have ceased operations, compared to 40% of traditional companies.
"This proves that investing in the social economy is a long-term strategy that pays off," said Bénédicte Sohet, Secretary General of ConcertES, the consultation platform for representational organisations in the social economy in Wallonia and Brussels.
For about fifteen years, the sector has experienced continuous growth. It accounts for one in seven salaried jobs in Wallonia and Brussels, totalling 262,000 people. Between 2018 and 2022, it contributed to 21% of net job creation in these regions, adding 18,000 new jobs.
"The social economy is a significant and resilient movement in the Belgian landscape, progressing regardless of the government in power," observed Augustin Morel, a project officer at the Observatory.
For the first time, the Observatory also assessed salaries. There are no substantial differences in average salaries between social economy enterprises and traditional businesses.
However, there are significantly fewer high salaries because executive positions are not excessively compensated, noted ConcertES.
