On the base of delimitations of the subject, the emergence and development of the third sector is discussed, its relevance, impact and potential presented, and recommendations for its further development are made.
The evolution and situation of social enterprises in Spain are inevitably linked to the wider framework of the social economy. Although other marginal roots also exist in relation to advocacy associations, social innovation approaches and the contribution of social entrepreneurs, Spain has a long tradition of social economy organisations involved in income-generating activities for social rather than commercial purposes. In fact, the term 'social economy' is more recognised by practitioners and society than 'social enterprise', although an intense debate is emerging. Currently, there is a dialogue in Spain between two ways of understanding social enterprises and how they stand between the traditional forms of social economy and new business models that balance economic and social aims. One position understands social enterprise as part of the social economy, while the second considers social enterprise as a new field. A recent evolution in the conception of social enterprises fits between these two positions, reaching a common point whereby the concept of social enterprise could be integrated into the social economy framework as the result of the expansion of its borders. Such a perspective is in line with the resolution of the Spanish Parliament, which understood Law 5/2011 on the Social Economy to be the legal framework for social enterprises in Spain. This law offers a legal framework for all entities that form the social economy, such as those that traditionally belonged to the social economy, as well as for all other model of enterprises whose economic activity is based on the principles of social economy. These principles are in accordance with the working definition of social enterprise in Annex 1, although the latter is characterised by an emphasis on the general interest and the participatory governance of these organisations. In all, Law 5/2011 has the flexibility to become the legal framework for social enterprises in Spain. Some specific business models can be characterised as social enterprises in Spain. Firstly, those with a long tradition in the provision of social services and/or goods and services to vulnerable people which apply a method of production with a social objective, and which are regulated, sometimes as specific legal forms, and other times via social qualification of liability companies. These models are social initiative cooperatives (CIS), work integration social enterprises (WISE) – which include two sub-models, namely employment integration enterprises (EI) and special employment centres of social initiative (CEE) – and some associations and foundations with economic activities.