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Social and Solidarity Economy in Greater Lyon

a dynamic, meaningful approach to entrepreneurship
les pentes de la Croix-Rousse à Lyon

The Lyon urban area is the birthplace of consumer cooperatives, and to this day it stands out for the many dynamic and innovative Social and Solidarity Economy initiatives that it fosters, in highly varied sectors: solidarity-based agricultural production, tourism, popular education, personal services, fair trade, construction and finance.

In its 2008-2013 mandate plan, Greater Lyon proposes supporting the Social and Solidarity Economy as an essential component of the local area’s economic development.


Croix-Rousse, 1835…

In Croix-Rousse, on June 24, 1835, Michel-Marie Derrion initiated his cooperative grocery store concept. At 6 Montée de la Grand Côte - now no. 95 - he opened his first store. And thus consumer cooperatives began in Lyon. The business was managed by an elected manager. The profits were distributed equally amongst the members, the store employees, consumers and a social fund.

Derrion’s “fair and equitable trade” thus respected the principles of cooperation:

  • collective, transparent management,
  • high-quality products and
  • the distribution of profits.

Greater Lyon, today…

Since this groundbreaking initiative, cooperative, mutual and association-based projects have been developing continually over time. Thanks to its strong cooperative background, Greater Lyon is firmly committed to supporting the Social and Solidarity Economy.


A different kind of entrepreneurship

craft boutiques supported by a Greater Lyon BEC

Craft boutiques, designers, stylists... all supported by a Greater Lyon Business and Employment Cooperative © Cap Services

Among the many Social and Solidarity Economy initiatives that are emerging in the area, Greater Lyon supports:

  • the Business and Employment Cooperatives, which propose to new entrepreneurs a forum for discussion and pooling of resources to test the viability of their businesses under real conditions (click here for details).
  • the Transméa program of the Regional Union for Cooperatives. This program provides assistance and financing to employees who want to take over their companies.
    • The first venture-capital firm dedicated to employee takeovers of companies, Transméa offers equity capital and quasi-equity packages ranging from 10,000 to 300,000 euros.

Innovating socially

Greater Lyon supports social-innovation projects that are budding in the area, such as housing cooperatives. These present an alternative to rental and home ownership, as they are based on collective ownership of property.

Housing cooperatives:

  • incorporate a philosophy of social harmony, with the objectives of different generations and social classes co-inhabiting
  • encourage living in harmony with the environment
  • help prevent real estate speculation.

Facilitating access to credit

Through its support of ADIE (Association for the Right to Economic Initiative) and RDI (Rhône Initiative Development), Greater Lyon facilitates the financing of entrepreneurial projects that are excluded from the bank loan system.

ADIE

  • a solidarity financial backer
  • grants loans in the form of micro-credit: loans averaging 2,600 euros over an 18-month period, with a reimbursement rate of 93.1%
  • also offers individual and collective assistance for 2 years.
  • mainly directed at social welfare recipients (representing 48% of its target base) and the unemployed (41%).

RDI

  • is for new entrepreneurs with larger-scale projects;
  • offers loan guarantees, loans on trust and quasi-equity contributions to entities working within the Social and Solidarity Economy.

The Business and Employment Cooperatives: testing and developing a business plan

Do you want to start up a company with assistance and a solid framework?

The Business and Employment Cooperatives (BEC) are facilities that enable entrepreneurs to test the economic viability of their projects, in real terms. As soon as this viability is established, the entrepreneur becomes an employee, and then potentially a member of the cooperative. BECs take care of the legal and financial side of the business, while training the new entrepreneurs in these skills.


In Greater Lyon, there are now 7 BECs: