The Situation of Social Cooperatives in Small Villages in Hungary

Social cooperatives, which are an important pillar of the solidarity economy, have become increasingly popular and common in Hungary over the past 10 years, especially in disadvantaged settlements, where the administrative burden of public employment is outsourced to social cooperatives. Analyzing s...

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Main Author: Katalin Lipták
Format: Article
Language:English
Published: MDPI AG 2024-12-01
Series:Administrative Sciences
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Online Access:https://www.mdpi.com/2076-3387/15/1/3
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author Katalin Lipták
author_facet Katalin Lipták
author_sort Katalin Lipták
collection DOAJ
description Social cooperatives, which are an important pillar of the solidarity economy, have become increasingly popular and common in Hungary over the past 10 years, especially in disadvantaged settlements, where the administrative burden of public employment is outsourced to social cooperatives. Analyzing social cooperatives in small villages is a relevant topic for local economic development. Of the 3155 settlements in Hungary, 1162 have a population of less than 500 inhabitants, i.e., small villages. In the spatial structure of Hungary, small villages tend to be located on the periphery, which is both the spatial and socio-economical peripheral position, with mostly disadvantaged inhabitants with low educational attainment and high unemployment. In these settlements, local communities can better understand what hinders and what helps their economies to grow and improve living standards by assessing their economic base. With this new knowledge, local communities can achieve results through strategically designed programs and projects that social cooperatives can join and help achieve. The methodology of the study is field research; we interviewed managers of the social cooperatives to learn about its operations and difficulties. The study described well-run and successful social cooperatives. In small villages, these cooperatives can be an important source of employment, even if the number of people employed is low. The experiences of the field research are presented in the form of recommendations for policymakers, as social cooperatives can be an important instrument of employment policy.
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spelling doaj-art-d4ed1e62d6f246da8c446165e99ffcbc2025-01-24T13:15:17ZengMDPI AGAdministrative Sciences2076-33872024-12-01151310.3390/admsci15010003The Situation of Social Cooperatives in Small Villages in HungaryKatalin Lipták0Department of Labour Market and Employment Policy, Faculty of Economics, University of Miskolc, 3515 Miskolc, HungarySocial cooperatives, which are an important pillar of the solidarity economy, have become increasingly popular and common in Hungary over the past 10 years, especially in disadvantaged settlements, where the administrative burden of public employment is outsourced to social cooperatives. Analyzing social cooperatives in small villages is a relevant topic for local economic development. Of the 3155 settlements in Hungary, 1162 have a population of less than 500 inhabitants, i.e., small villages. In the spatial structure of Hungary, small villages tend to be located on the periphery, which is both the spatial and socio-economical peripheral position, with mostly disadvantaged inhabitants with low educational attainment and high unemployment. In these settlements, local communities can better understand what hinders and what helps their economies to grow and improve living standards by assessing their economic base. With this new knowledge, local communities can achieve results through strategically designed programs and projects that social cooperatives can join and help achieve. The methodology of the study is field research; we interviewed managers of the social cooperatives to learn about its operations and difficulties. The study described well-run and successful social cooperatives. In small villages, these cooperatives can be an important source of employment, even if the number of people employed is low. The experiences of the field research are presented in the form of recommendations for policymakers, as social cooperatives can be an important instrument of employment policy.https://www.mdpi.com/2076-3387/15/1/3social cooperativeHungarysmall villages
spellingShingle Katalin Lipták
The Situation of Social Cooperatives in Small Villages in Hungary
Administrative Sciences
social cooperative
Hungary
small villages
title The Situation of Social Cooperatives in Small Villages in Hungary
title_full The Situation of Social Cooperatives in Small Villages in Hungary
title_fullStr The Situation of Social Cooperatives in Small Villages in Hungary
title_full_unstemmed The Situation of Social Cooperatives in Small Villages in Hungary
title_short The Situation of Social Cooperatives in Small Villages in Hungary
title_sort situation of social cooperatives in small villages in hungary
topic social cooperative
Hungary
small villages
url https://www.mdpi.com/2076-3387/15/1/3
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