Connecting LEADER and the social economy: insights, practices and actions from the Rural Pact

The social economy is a powerful driver of the long-term vision for EU’s rural areas, helping build prosperous, connected, resilient and stronger rural territories by 2040. The Rural Pact – and its community of more than 3 500 members – is actively supporting this agenda, including by strengthening links with LEADER and other community-led approaches.

Through the Pact, rural voices, including those of LEADER actors, are increasingly contributing to shaping policy agendas.

Gathering rural insights: consultation on the Social Economy Action Plan (SEAP)

Members of the Social Economy Community Group, one of 12 Rural Pact thematic groups, participated in an online consultation on the SEAP mid-term review on 1 October 2025. 

The consultation, jointly organised by the Rural Pact Support Office and the European Commission (DG EMPL and DG AGRI), collected input for upcoming updates to the SEAP and Rural Action Plan, in which the social economy is part of the flagship initiative on entrepreneurship. Over 30 members of the Social Economy Community Group joined to share their feedback.

The consultation emphasised the strong potential of LEADER and community-led local development (CLLD) to support social economy actors, mainly because LEADER’s bottom-up, place-based approach reaches small organisations often missed by larger, top-down programmes. LEADER’s flexibility is particularly relevant for social economy initiatives operating across sectors such as care services, energy cooperatives, cultural venues, or short food supply chains, which frequently fall between traditional funding categories.

Challenges were also discussed, including complex administrative procedures too burdensome for small-scale, multi-purpose initiatives; eligibility rules focused too heavily on legal form rather than social impact; and the need for clearer, simpler guidance for applicants.

Suggestions for improvement included raising Local Action Groups’ (LAGs) awareness of the social economy, integrating social economy priorities into local development strategies, and supporting peer learning between LAGs and social economy actors. Several participants also encouraged using LEADER more systematically as a ‘safe space’ for experimentation – where new social or economic models can be tested without rigid administrative expectations.

Discover LAGs operating across the EU, their work and contact details, in the LAG Directory

Sharing knowledge: Rural Pact social economy webinar

The intersection between LEADER and the social economy has also been a recurring theme in Rural Pact knowledge-sharing activities. A Good Practice Webinar held in May 2023 explored how social entrepreneurship contributes to rural vitality and cohesion, highlighting the role that LEADER/CLLD can play.

Webinar discussions underlined that social enterprises often originate in response to unmet local needs and require long-term, tailored support. It is important to combine financial assistance with capacity building, and to raise awareness of the social economy model among local communities and public authorities. More flexible regulatory environments and greater recognition of LAGs as key enablers of rural social entrepreneurship are key.

A notable example from Bałtów, Poland, saw local leaders transforming a declining rural municipality into a vibrant centre for tourism and social enterprises. Supported through LEADER and strong community mobilisation, the initiative generated jobs, engaged young people and revived local pride, demonstrating the transformative potential of LEADER when paired with social economy ambitions.

Good Practices: LEADER and social economy in action

Several initiatives in the Rural Pact Good Practice database illustrate how LEADER and CLLD enable social economy projects:

Together, these examples show how LEADER’s flexible, community-driven approach unlocks new opportunities for rural social economy initiatives.

Discover LEADER projects related to the social economy in the EU CAP Network's Good Practice database

Driving the rural vision: actions from the Rural Pact Community

Rural Pact members are already contributing to the social economy through 14 concrete actions published on the Rural Pact platform. These range from awareness-raising campaigns and rural innovation hubs to analytical work, network development, knowledge transfer and the creation of new social cooperatives.

These initiatives demonstrate how grassroots action drives progress toward the 2040 Rural Vision. Rural stakeholders – including LAGs and social economy actors – are encouraged to join the Rural Pact and submit their own actions. By doing so, they gain visibility as action leaders and inspire others across Europe to strengthen the social economy in rural areas.

Together, these activities show how the Rural Pact is helping to bring rural and LEADER voices more prominently into EU-level debates while strengthening the exchange of knowledge and practical experience across Europe. By connecting practitioners, highlighting good practices and channelling stakeholder insights into policy processes, the Pact plays an important role in advancing synergies between LEADER and the social economy, supporting more inclusive, innovative and community-driven rural development.