Financing of social and solidarity economy organizations case of the cooperative: A Literature review

Abstract

In a world marked by repeated economic and financial crises, by the increasing volatility of markets and by the growing power of dissolutions through cessation of operations or liquidation of organizations, the use of the social and solidarity economy is important. The objective of this article is to identify the financial behavior of social and solidarity economy organizations, particularly cooperatives. In order to better understand the subject, a review of the literature on the theoretical foundations of the social and solidarity economy and the modes of financing cooperatives were carried out. In this sense, we seek to answer the following question: Which mode of financing is adequate to the SSE sector, and specifically in the case of cooperatives?

In order to answer the research problem. We will first try to highlight the characteristics of cooperatives in the economy of the countries. Then, in a second step, we will look at the financial behaviors of cooperatives with regard to the choice of financing method. The present research has synthesized the existing literature on the social and solidarity economy. Its main results are: the classification of the different financing methods available to cooperatives, on the one hand the most widespread classic models and, on the other hand, the new innovative financing models.

Keywords: Social and solidarity economy, cooperative, financial structure, financing theory.

JEL Classification: A13, B55, P34

Paper type: Theoretical Research