Support structures for a plural economy in rural areas? Analysing the role of community‐based social enterprises

Abstract

Community‐led innovative solutions, including community‐based social enterprises, have been brought to the fore as significant actors with the potential to contribute to neo‐endogenous rural development. Through 34 interviews with stakeholders of four community‐based social enterprises operating in rural Ireland and Finland, we analyse the role of these organisations in the institutionalisation of plural (socio‐)economic relations within different rural areas of Europe. Our findings demonstrate how community‐based social enterprises can act as enablers and supporters of local markets, channels of redistributive resources and coordinators of local reciprocity, thus, contributing to ‘institutional thickness’ within their localities. We also show how structural differences, such as the role of local government in Finland and Ireland, can partially explain the role of these organisations as rural development actors. Finally, our article stresses the relevance of developing research and policies from a socially embedded and pluralistic view of the economy to provide nuanced analysis and realistic solutions to the complex challenges that rural areas face.

“Mapping Out” Sustainable Social Farming Paths in Italian Municipalities

“…Regarding the third research hypothesis, the six clusters formed using multivariate analysis highlight different forms of resilience in Italian agriculture. Indeed, it emerged that, in the case of Cluster 1, the involvement of local administrations and the support of experts, in line with Olmedo et al (2023) [52], are necessary because it created social networks that assist the social services on offer and creates an opportunity to supplement the low incomes of enterprises located mainly in rural municipalities. In Cluster 2, the impact of internal innovators was, at first, more on the socio-cultural side.…”

Legitimacy of community-based social enterprises (CBSE) in service provision in rural areas

“…Typically characterised as a subtype of social enterprise or community business (e.g. Bailey et al, 2018), CBSEs share common features: operating in a defined geographical location, functioning as independent organisations managed and owned by local residents or the community, reinvesting profits in the business or community and prioritising local needs (Kleinhans, 2017;Bailey et al, 2018;Kleinhans et al, 2020;Olmedo et al, 2023). CBSEs contribute to their local environment by offering new or revived services, participating in community asset development and seeking opportunities for local employment (Bailey, 2012).…”

“…They fill service gaps where other actors, public sector or private enterprises, might not find sufficient scope due to small profits or an insufficient market share (Bailey, 2012; Olmedo and O’Shaughnessy, 2022). Additionally, CBSEs engage in building networks and cooperative relationships with stakeholders (Steiner and Teasdale, 2019; Olmedo et al. , 2023) and endeavour to influence political decision-making for local well-being (Bailey, 2012).…”