Glossary

Community-based economics or community economics is an economic system that encourages local initiative and self-organization as eco-village communities or cohousing experience in city. It is also a topic in the urban economy, linked to the ethical purchase and local purchase, which aims to encourage local producers in the social and solidarity network. An example is the groups of solidary purchases where family groups organize their purchases (food or other goods and services) directly with local producers. In this way, they expand the social economy and solidarity circuit.

A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically-controlled enterprise (International Cooperative Alliance definition). Cooperatives are voluntary organisations, based on the values of self-help, democratic principles of management, equality and solidarity, guided by common principles of action. Members actively participate in setting policies and making decisions. “Cooperative members contribute to and control the capital of their cooperative. They usually receive limited compensation, if any, on the capital they subscribe; and decisions regarding the distribution of surplus (whether towards the development of the cooperative, for compensation of members, or supporting community activities) are taken democratically. Cooperatives are autonomous, self-help organizations controlled by members. If they raise funds from external sources, they do so on terms that ensure democratic control by members and maintain the cooperative’s autonomy.”

A specific style of management which is based on the idea of self- determination, inclusiveness, equal participation, deliberation autonomy, reflexivity, cooperation, self-management and collective ownership. We often find this situation in workers who have some relationship with unionism, thus have a clear political project and see self-management as a revolutionary approach.

A broad area where in various forms of capital (financial and non-financial) are structured in ways that consider and value financial performance, social value creation and the affirmation of solidarity values and principles. This field is mainly animated by financial institutions owned and controlled by their members guided by common principles and values such as the one of cooperatives and associations – like credit unions (democratic control, fairer access to investment, peer to peer financial, etc.)

Is where the focus of the investment (financial and non- financial) is on the fuller social, environmental, cultural and economic benefits of an initiative, on the organisation’s work and on the health of society as a whole.

Is a term covering all resources of an organisation, – including non-financial assets n that can be notified in accounting/book keeping, such as the volunteering time dedicated. From an economic perspective financial resources are the part of the organization’s assets (property). Sometimes financial resources are referred just as Finance, often with some attributes (such as Business finance, Personal finance, Public finance). Non- financial resources are the resources not related to the money and this kind of resources can assume different forms, for example: time; human resources, knowledge, social network, open source movement, voluntary work, local exchange systems, etc.

The method of and tool used in providing finance a person or organisation. Financial instruments are constricted by regulation at national and European level, their development is usually lead by banks – and it can include SSE dimension (for example via socially responsible investment such as solidarity saving instruments).

Theoretically, this financial sustainability will enable us to cover our administrative costs and to prioritize our activities so as to accomplish our missions. The revenues from economic activities and other sources (public funds, donations) cover the cost of economic activities, but also of social mission. Generating a surplus is not prohibited in social solidarity economy.

Creating and securing a lively local economy through ESS means enhancing the deep ties with the territory, with the history, culture, vocations of its inhabitants and the natural environment that characterizes it. This approach does not want to have a look at the past, but instead wants to encourage innovation (even technological) engagement on a solid foundation, promoting culture, training (even professional), especially in younger generations. Local economy is not a closed economy but a people-based and community-based economy capable of dialogue and interaction with economies of different scale (regional, national, international). The expression local development is used to indicate a wide variety of cultural, scientific, and political positions; diversity with theoretical and methodological references; a variety of practices and examples. Local development is a qualitative increase in the capacity of the territory to act, react, plan and manage complex situations. At the local population level, development is identified as an increase in personal freedoms due to the increase in "capability" (Amartya Sen: learning ability). To read local development, we can not only look at aspects such as local GDP (Gross Domestic Product) or the growth of economic transactions, but we need to look at complex social and political aspects which lead to a rise in living standards that the market alone could not do it. Through co-operation between actors and the creation of stable network of actors over time, the capacity for vision and action increases. It will thus be possible to meet not only the basic needs of the population, but also to promote quality of life and social relations and care and safeguard of the natural environment. SSE organisations can flexibly adapt to local development needs. Not committed to maximising financial profit, SEE organisations can take into consideration the values and expectations of actors in the field of local development, and the long-term effects of decisions, as well as define actual development strategies.

Is defined as putting the money to work in order to increase (maximise) the earning potential.