Social Cooperatives – a Tool for a Prosperous National Economy

Abstract

Cooperatives are gaining an increasingly important role in socio-economic development in both developed and developing countries. The article examines the specificity of these organizations. Their main characteristics, similarities and differences with other comparable organizational forms are studied as well. Special emphasis is placed on social cooperatives and their contribution to the social and economic environment. In the last decade, the role of social cooperatives has grown as an alternative solution to social problems of vulnerable groups which the state cannot address effectively due to lack of public resources. A brief comparative analysis of the activities of cooperatives in Bulgaria and Germany has been made, as both countries have long traditions in cooperative movement. The benefits to the national economy are discussed and a new focus for their activities relevant to contemporary economic realities is proposed.