Policy Brief-Nr2 31.07.Rev.JD.02.08.17
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LPTransition Louvain Partnership Research on Ecological and Social Transition Diversity of ooorganisationalorganisational aandnd economic models in the collaborativecollaborative economy LPTransition Transdisciplinary research briefs on the sharing economy series #2 Jacques Defourny, Tom Dedeurwaerdere, Louise Lambert, and Marthe Nyssens E-mail: [email protected] Partnership: CRIDES (UCL), CPDR (UCL), CIRTES (UCL), CSO (Odisee), CIPI (USt-Louis) Funding: Project city4coEN (Anticipate program from Innoviris) Please cite as: Defourny, J., Dedeurwaerdere, T., Lambert, L., Nyssens, M., Diversity of organisational and economic models in the collaborative economy. LPTransition Transdisciplinary research briefs on the sharing economy series #2. Available on line at http://lptransition.uclouvain.be/fr/download.html 1 Executive summary: in this policy brief, we use the Social Enterprise typology, developed by Defourny and Nyssens (2017), to describe finally conclude with some policy the diversity of organizational and economic recommendations. models within the collaborative economy in Brussels. Our findings show that there is a wide 2. A typology of Social range of organizational models in the collaborative economy including many for- Enterprise models The typology of Social Enterprise Models profit organizations but also a plurality of social enterprises and other third sector developed by Defourny and Nyssens (2017), organizations. We also look at some major combines different types of principles of institutional trajectories shaping some of these interest (namely the mutual, general and organizational models within the collaborative capital interest) and resource mixes to identify four major SE models economy field. 2.1 Principles of interest and economic Diversity of organizational and models economic modelmodelssss in the ThreeThreeThree principles of interest can be identified in collaborative economy the economy: the general interest (GI), the mutual interest (MI) and the capital interest Jacques DEFOURNY, Tom (CI). When speaking about "the economy", the DEDEURWAERDERE, Louise LAMBERT and first type of organization that is generally Marthe NYSSENS identified is the "for-profit firm" driven by capital interest. In conventional approaches, 1. Context the economy even merges with this unique Mapping initiatives labelled as Collaborative logic. Capital interest organizations are Economy by researchers or the media brings controlled by investors who are mainly into light the great variety of the field. Indeed, interested in the overall return of their capital the concept of collaborative economy covers a ownership. Profit distribution and increasing wide range of organizational and economic the value of the shares are the main goals of models, from multinationals like Uber to local these investors. However, it is well know that social enterprises like Taxistop. Most of the for-profit enterprises do face market failures, literature on collaborative economy focus on which call for an intervention of the state, capitalist platforms. In this policy brief, we driven by the general interest. Some would like to highlight the diversity of models associations driven by a social mission are close and the existence of collaborative initiatives to the general interest logic, although their that can be labelled as social enterprises or as general interest (the community they serve) is part of the social economy1. Therefore, this usually not as wide as the one served by the policy brief aims at understanding the diversity state. There is also a third principle, often of organizational and economic models in the neglected when describing socio-economic collaborative economy and particularly the realities: the mutual interest. The mutual diversity of social enterprises. To that purpose, interest refers the production of services or the recent typology of social enterprises goods provided to members under their own developed by Defourny and Nyssens (2017) control, provided the latter are not investors seems highly relevant. In the first part of this (the members’ main goal focuses on such policy brief, we will explain the main building provision, not on the return on investment). In blocks of this typology. Then, we will apply it to other words, mutual benefit organizations the field of the collaborative economy. We will include all traditional types of cooperative enterprises, as well as voluntary associations 1 For a definition of social enterprise in Brussels, see driven by the interest of their members (such http://bruxell-es.be/entrepreneuriat-social/ 1 2 as sport clubs, professional associations, etc.). Legend: mobility examples are in blue; food examples are in red; housing examples are in brown. In addition to principles of interest, the type of Figure 1 first shows six traditional enterprise resources that are mobilized also contributes to models (written in black) that can be seen as define “economic models” at large. More matrices from which social enterprise models precisely the "resource mix" can include are emerging (in green). On such a basis, we various combinations of three resource types: argue it is also possible to locate examples of market income, public grants and philanthropic Brussels collaborative initiatives for each of the resources. “sectors” highlighted by the City4CoEN project , 2.2 Institutional diversity in the i.e. food, housing and mobility. In such a collaborative economy perspective, we start from the same sssixsix traditional forms of organizationsorganizations: a. Different models of enterprises 1.1.1. Mutual interest associations (((MI(MIMIMI----AssocAssocAssocAssoc)))) are In order to represent major models of social mutual interest organizations. An example of enterprises, Defourny and Nyssens (2017) draw MI-Assoc in the City4CoEN project is Trustroots. a triangle based on these two dimensions: the It is a closed travelers’ community managed by an English Foundation. It is run by volunteers interest principles and the types of resource and its services are provided for free. Each mix. On the triangle hereafter (fig.1), the three participant can become a member of the principles of interest are quite remote from General Assembly. Trustroots therefore acts in each other with some possible intermediary the interest of its members, who control the positions when different principles of interest organization. are combined. The resource mix is represented by the two dotted lines across the triangle. 2. Cooperatives ((CoopCoopCoopCoopssss)))) are also mutual interest Third They set up a distinction between situations in organizations, owned and democratically sector which public funding dominates, those in which controlled by their members. There is no coops org. market income is prevalent, and those in which in the City4CoEN project. a resource mix is chosen. 3.3.3. General interest associations (((GI(GIGIGI----AssocAssocAssocAssoc)))) are FIGURE 1: TTTypologyTypology of social enterprise modelsmodelsmodels driven by the general interest. An example of built on two dimensions: interest principles and GI-Assoc in the City4CoEN project is the resource mresource mix.mix. Source: Defourny & Nyssens foodbank Brussels-Brabant. It is an association (2017, p.12) collecting food from large retailers and redistributing it for free to the less fortunates. It is operating on philanthropic resources (volunteers and donations). 4.4.4. The StateThe State includes public Public Public organizations. There is no public org. org. organization in the City4Co project. 555-5---6666.... For Profit Organizations (((FPOs(FPOsFPOsFPOs)))) Capitalist are capital interest organizations. org. Although capitalist as well, many For- small and medium-sized profit enterprises (SMEs) may balance in org. a different way the search for profits and non-financial goals. SMEs and FPOs are numerous in 2 3 the City4CoEn project. Uber, Deliveroo and food. Users, producers, workers and other Airbnb are examples of FPOs. cooperatives are members of the general assembly. Besides the commercialization of According to Defourny and Nyssens (2017), agricultural products, Agricovert also is building social enterprises emerge from these six a network of farmers and it develops activities traditional models through two distinct to raise awareness on sustainable agriculture. It institutional trajectories : (1) an “upward” move therefore combines the pursuit of its members’ of mutual or capital interest organizations interests with the pursuit of the interests of the towards a greater orientation to the general whole community. interest (blue arrows in the figure 1); (2) a “downward” move of general interest 2.2.2. Social businesses (SB)(SB)(SB) are rooted in a organizations towards more market activities in business model driven by shareholders’ order to complement their existing resources interest, but they mix this logic with a “social 2 (red arrows in the Figure 1) . entrepreneurial” drive aimed at the creation of We now look at these trajectories in order a “blended value”, in an effort to balance and discuss how collaborative economy initiatives better integrate economic and social purposes. may be represented in this figure as well. The Cirkle is an example of such social business. It is upward move to a larger general interest a commercial company (SPRL) selling organic orientation gives birth to the social cooperative and local food baskets. It is part of the circular model and the social business model. economy movement: it tries to reach