Another French Social Innovation: Cooperatives of Salaried Entrepreneurs

10 Pages Posted: 13 May 2013 Last revised: 7 Mar 2015

See all articles by Arvind Ashta

Arvind Ashta

CEREN EA 7477 Burgundy School of Business - Université Bourgogne Franche-Comté

Date Written: May 23, 2013

Abstract

Type of Paper: Exploratory, descriptive, case study Objectives: In the wake of the global crisis, the role of the financial markets is being questioned and new forms of social innovations focusing on stakeholder governance and cooperation are being experimented. This paper looks into one such social innovation: Coopérative d'Activité de d'emploi Design/ Methodology: This is a case study on a social innovation where the institutions are being transformed to introduce new legal forms. This is a cooperative of entrepreneurs where the entrepreneurs are salaried employees. The research is being based on a review of laws and regulation, literature review supplemented with exploratory interviews of such entrepreneurs. Key Results: The paper finds out differences between these cooperatives and concepts such as nurseries and incubators. It explains the process of evolution of these cooperatives. It points out the limitations of the regulatory regime. Value: The financing of microentrepreneurs without subsidies is a problematic issue. Over-reliance on Microcredit places stress. The sharing of expenses and cost reduction leads to lower needs for microcredit. It also provides the microentrepreneurs a new form of governance and opportunities for networking, developing citizenship and social wellbeing.

Impact: If adopted in other parts of the (developed) world, such cooperatives could help overcome downside risk, loss aversion, isolation and poverty traps of unemployment benefits.

Keywords: Governance, cooperative, microfinance, local, social innovation, coopératives d'activités et d'emploi, CAE

JEL Classification: J54, P3, P13, G39, M13

Suggested Citation

Ashta, Arvind, Another French Social Innovation: Cooperatives of Salaried Entrepreneurs (May 23, 2013). Available at SSRN: https://ssrn.com/abstract=2263937 or http://dx.doi.org/10.2139/ssrn.2263937

Arvind Ashta (Contact Author)

CEREN EA 7477 Burgundy School of Business - Université Bourgogne Franche-Comté ( email )

29 rue Sambin
21000 Dijon
France

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