Institution of Social Economy: Sectors of Cooperation in the Countries of Southern Europe

The economic crisis in Greece has created a high unemployment rate in almost all sectors of the economy, both in the Greek periphery and the major urban centers. According to the report of the Institute of the General Confederation of Greek Workers, published in 2014, the unemployment rate recorded in July 2014 is 26.4%, which ranks Greece first among the EU Member States, followed by Spain with 24%, Croatia with 16.1% and Cyprus with 15.1%. As far as youth unemployment is concerned, Greece ranked second with 50.7% share, after Spain which is for the second time at the top of the list with the rate of youth unemployment touching 53.7%. According to a European Commission report during the period 2008 - 2011 more than 90,000 Greek SMEs were closed. In five years the economic crisis has affected almost all sectors of the economy. The best performance was achieved by the sector of Renewable Energy Sources (RES), which showed impressive growth particularly in the period 2011-2012 as it benefited from the favorable terms of the institutional framework, namely subsidies. In 2011, as part of research findings that emerged after the implementation of the Community Initiative Equal, the state established the institution of social entrepreneurship. Three categories of enterprises are included in the third sector of the economy, namely the social sector that occupies a wide range of business activities ranging from the production activities and the services supply to vulnerable population groups, to the labor market integration of vulnerable groups. However until now an important part of this sector of the economy, could not be moved dynamically in the field of competition. The institution should be supported, strengthened by the state, not through the provision of subsidies or financial incentives, but in terms of assistance. Given that operational risk is a inhibiting factor for the unemployed, but also for people belonging to vulnerable groups and considering the conditions of limited demand in the market due to the economic recession, it is necessary to investigate the possibility of adopting measures to strengthen the institution of social entrepreneurship.