Feasibility Study on Social and Solidarity Economy in Montenegro
Publisher: COSV – Coordinamento delle Organizzazioni per il Servizio Volontario
Podgorica, December 2024
Why This Study Matters
The world is facing deep inequalities, fragile economies, and social exclusion that often hit hardest in rural and marginalized communities. Montenegro is no exception. Yet, it carries within its traditions a strong culture of solidarity, cooperation, and resilience. Practices such as moba (voluntary agricultural assistance) and ortakluk (resource pooling among families) have for centuries embodied the essence of what we today call the Social and Solidarity Economy (SSE).
This study, prepared within the framework of the YouSEED project – Youth Social Economy Exploring Rural Development, transforms those traditions into a strategic opportunity for the future. It shows that SSE is not a foreign concept imported from outside, but rather a modern expression of deeply rooted values, capable of driving sustainable development, EU integration, and youth empowerment in Montenegro.
Objectives of the Study
- Establish a baseline for the development of Montenegro’s SSE ecosystem.
- Provide evidence to design a multi-stakeholder incubation program to support youth-led and rural social enterprises.
- Map opportunities and barriers for social entrepreneurship in Montenegro.
- Offer policy recommendations to align Montenegro’s path with the EU Social Economy Action Plan and Agenda 2030.
Methodology
The research applies a holistic approach:
- Desk analysis of policies, laws, and financial instruments.
- Comparative research with Slovenia, Croatia, and Serbia.
- Interviews and focus groups with CSOs, local authorities, and social entrepreneurs.
- A SWOT analysis to map strengths, weaknesses, opportunities, and threats.
Core Findings
- Ecosystem in its Infancy
Montenegro has only 30–40 active social enterprises, mostly CSOs or cooperatives relying on donor funds. They face fragile sustainability and lack business planning skills. - Institutional Gaps
- No specific law on social enterprises.
- Support is fragmented and tied to NGO regulations, which limit entrepreneurial activity.
- Social procurement and access to public funds are underdeveloped.
- Untapped Potential
If Montenegro followed EU averages, SSE could:- Employ 15,000–18,000 people.
- Contribute €440–600 million annually (6–9% of GDP).
- Strengthen rural areas facing depopulation, unemployment, and gender disparities.
- Cultural Assets
Montenegro’s traditions of solidarity, philanthropy, and mutual aid remain strong and can serve as a natural basis for developing SSE. The COVID-19 crisis showed how volunteering and local support networks can be reactivated in times of need.
The Threefold Path – COSV’s Methodology
At the heart of the study lies COSV’s Threefold Path, a method designed to avoid one-size-fits-all solutions:
- Be Plural – Adapt solutions to local realities, avoid rigid models.
- Be Cross-Cultural – Root social enterprises in Montenegro’s culture and traditions while engaging international knowledge.
- Be Agent – Balance the growth of individual enterprises with ecosystem-wide resilience through incubation and multi-stakeholder partnerships.
This approach not only fosters entrepreneurial skills but also empowers communities to act as agents of change, connecting micro-level innovation with macro-level policy impact.
Policy Recommendations
The study strongly advocates for:
- A dedicated law and strategy on social and solidarity economy (2025–2029) aligned with EU policies.
- Financial instruments beyond grants: microfinance, innovation funds, social procurement, green economy subsidies.
- Institutionalization of public-private-people partnerships (4P) to ensure sustainability.
- Capacity-building for youth, women, and marginalized groups, enabling them to become social entrepreneurs.
- Stronger networks and support structures to provide mentoring, training, and advocacy.
A Motivational Outlook
This study is more than an academic exercise. It is a call to action.
Montenegro stands at a turning point:
- Will its social economy remain fragmented, underfunded, and invisible?
- Or will it embrace its traditions of solidarity and align them with modern European frameworks to create a new generation of enterprises that put people and communities first?
The answer depends on coordinated action: policymakers, civil society, youth, and international partners all have a role to play.
The message is clear: a vibrant social and solidarity economy can transform Montenegro’s rural areas, empower its youth, reduce inequalities, and bring the country closer to the European Union.
