The social and solidarity economy, an economic model that works

Taking care of one's environment and of others is no longer left to the sole hands of public structures and associations.

If the latter remain a major player in the Social and Solidarity Economy (SSE), more and more business creators are deciding to make a mission of general interest their activity, or to integrate social values ​​in their business model.

About fifty applied in 2020 for the social entrepreneur award, of which “the Parisian - Today in France” is a partner, awarded for 14 years by the strategy consulting firm Boston Consulting Group (BCG).

The two winners this year are Too Good To Go, an application allowing individuals to buy back unsold food from merchants at low prices in the form of a surprise basket, and Alenvi, a home help service billed according to the income level of customers. .

The first has just raised 25 million euros, the second is betting to balance its activity this year.

“The SSE sector is very dynamic and has become more professional,” notes Jean-Michel Caye, senior associate director of BCG.

“Fifteen years ago, we met a majority of goodwill.

We now find ourselves facing entrepreneurs who are even more professional, sharpened, connected with the business world, who know how to appeal to investors and find financing.

The viability of the projects and their impact are remarkable.

"

The social entrepreneur must be innovative

Certainly, some may call for subsidies for jobs (people in integration).

And "profitability requirements are lower than other private companies, especially when they have shareholders," notes Jean-Michel Caye.

This reduces the strain ”.

But at the very least, a balanced operating account is needed for the project to be viable.

Former BCG award winners demonstrate that growth can be achieved when the right strategic choices are made from the start.

The adapted company DSI-AP, awarded in 2008, saw its turnover rise from 150,000 euros when it was created to more than 32.8 million euros last year.

More recently, that of Lulu dans ma rue (2013 winner via Emmaüs Défi), has seen the number of its customers jump from 800 to 60,000 in 4 years.

These different experiences prove that their leaders are at least as efficient as the others.

"You have to be as talented as entrepreneurs in the classic sense to appeal to investors, pitch them, convince them", underlines Jean-Michel Caye, who welcomes the ability to raise capital from some, sometimes even before being profitable as the Too Good To Go winner.

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Opened in 2013, the Simplon digital school, dedicated to people in retraining or remote from employment (2017 winner), for its part succeeded in a second fundraising, in 2019, of 12 million euros from its historical pool of investors.

It is now present in 13 countries and its turnover soared to 10.59 million euros in 2020.

Money is the sinews of war but is not enough for development.

The social entrepreneur must be innovative in an ecosystem that is becoming very competitive.

Diversifying has enabled several winners to change scale and offer career opportunities to their employees.

"Proximity is very important"

Thus the integration company La Varappe (Bouches-du-Rhône), which started in 1992 in the maintenance of green spaces, today brings together 22 companies spread over four poles of activity, which range from eco-construction HR services.

La Varappe was awarded by the BCG in 2010 with 3.5 million euros in turnover and claims 44 million euros for 2020.

Regional presence is also an asset.

"These are often companies that have a regional foothold", notes Jean-Michel Caye, citing En direct des Breeders (2018 winner), a non-intermediary milk production and marketing company, born in Loire-Atlantique, and whose figure business grew to 6.3 million euros last year.

“Proximity works in their favor and it is very important in the model of success.

"

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The human resources policy is also a key to success, in particular for adapted companies, such as ATF Gaia (2014 winner), specializing in the management of electronic and IT equipment, which has grown from 3 to 160 employees, reaching 22 million euros in turnover in 2020.

"The leaders of ATF Gaia have been able to innovate and have people who make a career at home, this is also true at DSI", adds the director of BCG.

“There are more constraints and difficulties in a suitable business.

You have to be able to work with different profiles, to individualize the courses and to innovate on your HR model.

"

Manhandled like all business leaders by the crisis, some believe that the model is holding up better. "The Covid was an opportunity for our executives to fully play their role," notes Laurent Laïk, president of La Varappe. We were more agile, more decentralized. It is a real hope for the future. "