The ILO shares its knowledge on financing the social and solidarity economy (SSE) with its Constituents in Iran

The ILO COOP manager sent a video message for the 4th edition of the international webinar on cooperative experiences organized by the Ministry of Cooperatives, Labour and Social Welfare on March 8, 2022.

News | 31 March 2022
The webinar aimed to share emerging good financing practices among SSE units including cooperatives and social enterprises.

In her message Ms Esim said that access to financial resources is a key element of a conducive enabling environment for the SSE. However, traditional financing mechanisms are often not available to SSE units, she noted. She highlighted findings from two recent ILO research initiatives on “The contribution of SSE and social finance to the future of work” and "Financial mechanisms for Innovative Social and Solidarity Economy Ecosystems". She then elaborated on internal and external sources of financing. Internally, SSE units can generate funds from their members, management and the people involved in their activities. They may also generate income by selling goods and services, Ms Esim underlined. While these are readily available financing streams, they are usually insufficient to build reserves and finance expansion for SSE units, she noted. They therefore also reach out to activate external sources such as social and ethical banking, community-based savings schemes, and financial cooperatives including savings and credit cooperatives, credit unions and cooperative banks. She also mentioned some new forms of social financing including labour solidarity funds, social financial intermediaries, and equity debt instruments.

In addition to Ms Esim, the webinar also featured a video message from Mr Riccardo Bodini, the Director of Euricse. Mr Bodini shared highlights from the findings of the research that his institute undertook with the ILO on "Financial mechanisms for Innovative Social and Solidarity Economy Ecosystems".

You can view Ms. Esim’s video message here.