SSE trading companies: an under-exploited opportunity for the world of impact

SSE trading companies: an under-exploited opportunity for the world of impact

ESS France and Mouvement Impact France have published a groundbreaking report on Socially Responsible Economy Trading Companies (Sociétés Commerciales de l'Économie Sociale et Solidaire - SCESS). For the first time, an analysis sheds light on these little-known companies, even though they are essential to tomorrow's economy.

As the national representative of SCESS, Impact France works to strengthen their status, develop their resources and ensure their recognition by public authorities and funding bodies. We federate these companies so that together they embody an ambitious vision of the economy.

Born of the 2014 Hamon law, SCESS enable commercial companies to integrate the SSE by enshrining three principles in their bylaws: social utility, shared governance and limited profit-making. Ten years on, they form a strategic link, offering thousands of entrepreneurs the opportunity to reconcile economic performance with social or ecological impact.

SCESS: a key player with a promising future

Until now, their real importance has remained largely unknown, but the report reveals that there are over 4,500 of them. This number shows that, far from being marginal, they are already firmly rooted in the French economic and social landscape. What's more, over the last five years, the number of SCESS has more than doubled, illustrating an exceptional growth dynamic. 

Their profile clearly illustrates their potential: a majority of SCESS are VSEs and SMEs, but there are already more than 400 ETIs and large companies, and beyond their size, SCESS cover a wide variety of business sectors. This diversity demonstrates that the SCESS status is not confined to a specific type of activity: it can be applied to all companies that wish to place social and ecological utility at the heart of their business model.

SCESS are also firmly rooted in their local communities. They can be found all over the country, with a particularly strong presence in Île-de-France, the French overseas departments and territories, and in priority urban districts (QPV). Their presence in these strategic areas demonstrates their strong social commitment. 

These figures bear witness to an undeniable reality: SCESS are already a pillar of the French economic fabric, and they demonstrate that it is possible to reconcile economic performance with a positive social and ecological impact.

The full statistical report‍

A still fragile framework and insufficient support

Although SCESSs are already a solid economic reality, their status remains fragile. Created to embody the values of the SSE, they still suffer from a framework that can be too easily circumvented. Today, all it takes is a simple decision by a general meeting to opt out of their status. Similarly, democratic governance is not guaranteed, in the absence of precise obligations.

Beyond these legal aspects, SCESS face another major challenge: the lack of appropriate financing and limited access to SSE support mechanisms. Unlike cooperatives or associations, they very rarely benefit from public aid or dedicated support.

These weaknesses, both legal and institutional, deprive SCESS of support and recognition, even as they demonstrate their social and ecological usefulness. Strengthening their status and giving them access to concrete levers for development is therefore an essential condition for guaranteeing their credibility, encouraging new companies to take the plunge and enabling those already present to scale up.

The full legal report

Our proposals for protecting and developing SCESS

To unleash their full potential, SCESS must therefore be protected by a solid legal framework and developed with appropriate financial and institutional resources.

1. Protect status

• Stability of commitment: today, a simple general meeting is all it takes to leave the status. A more protective mechanism is needed to ensure that membership of the SSE is a lasting commitment.
  
  
• Limited lucrativeness: at present, the incorporation of reserves into capital or the use of retained earnings is a way of circumventing the ban on distributing profits. Introducing safeguards on these mechanisms would prevent the private capture of value.
  
  
• Effective shared governance: the law merely requires a "right of information" for stakeholders, which is insufficient. Standard clauses are needed to guarantee real participation and align practices with the spirit of the SSE.

2. Develop their role

• A clear identity: move away from a technical acronym to build an attractive identity, capable of making the status mobilizing.
  
  
• Effective access to SSE mechanisms: today, non-ESUS SCESS do not have access to the local support mechanism (DLA), and their theoretical eligibility for Pôles territoriaux de coopération économique (PTCE) or reserved public procurement contracts does not translate into practice. Ensuring they have effective access to these levers is a prerequisite for their development.
  
  
• Recognition of social innovation: Expand the "Young Innovative Company" status to include Young Innovative Impact Companies (JEII), and adapt the criteria for the Innovation Tax Credit (CII) and Research Tax Credit (CIR) to support social and environmental innovation.

These proposals respond to a twofold need: to secure the status of SCESS to make it credible, and to give SCESS the means to grow. They represent a unique opportunity to make SCESS a driving force for economic and social transformation.

All our recommendations for scess

SSE trading companies are a cornerstone of social and ecological impact enterprises. They embody a form of social enterprise that is indispensable to the development of the Impact Economy. Above all, they have the potential to boost the SSE from 10% to 20% of the French economy in the coming years.

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