How can we give greater prominence to economic actors who prioritise their social mission over returns on capital? Nearly ten years after the law on social impact companies (SIS) was passed, Luxembourg is embarking on a new phase in its policy to support the social and solidarity economy (SSE). The minister for Labour, 
“This new strategy marks an important step towards sustainably strengthening the social and solidarity economy and social innovation in Luxembourg,” said the minister, highlighting a roadmap drawn up in consultation with stakeholders, some of whose initiatives extend as far as 2035.
Insufficient access to appropriate funding
The sector already has a significant economic base. According to figures published by Statec in ‘Luxembourg in Figures 2026’, in 2022 – the latest figures available – the social and solidarity economy accounted for 28,004 jobs and €2.1bn in value added. These figures cover a range of organisations with diverse profiles: associations, foundations, cooperatives, mutual societies and social enterprises, operating in particular in the fields of social welfare, health and education.
Luxembourg has been supporting this model for over 20 years: a unit dedicated to the social economy was set up within the ministry of Labour in 1999, followed by the first national action plan in 2011. The SIS framework, introduced in 2016, followed by the Social Business Incubator (SBI) and the Impact Luxembourg label, launched in 2022, have rounded out the scheme.
The new strategy aims to build on these achievements and address the challenges that the government continues to identify, namely fragmented policies, limited visibility, administrative constraints and insufficient access to appropriate funding compared with so-called traditional businesses. Its aim is to enable organisations that prioritise their social purpose over the return on capital to expand their activities and market opportunities. It also responds to the European recommendation of November 2023 calling on member states to develop their policies in support of the social economy.
A platform and a legal framework in need of modernisation
This presentation is accompanied by an initial initiative: Luxembourg for Social Innovation (L4SI). The platform is intended to serve as a gateway for stakeholders, facilitate networking and the sharing of information, and promote new initiatives with a social and environmental impact, particularly in collaboration with the SBI. Looking ahead, the strategy provides for a modernisation of the SIS framework in 2027–2028, although the proposed changes have not yet been detailed. Approval and supervision procedures are to be simplified and digitised via MyGuichet.lu. A national centre of excellence has also been announced to strengthen training and the sharing of expertise.
Public coordination is set to evolve with the creation of an inter-ministerial body between 2028 and 2030. Over the same period, the government plans to formalise dialogue with stakeholders and to map out the national and European funding available to the sector.
The most eagerly anticipated economic measures, however, are scheduled for a later date. A review of financial instruments and targeted support mechanisms is scheduled for 2030–2035. By that time, ways of facilitating the integration of social and environmental criteria into public procurement will also be explored.
No quantified targets have yet been set
The strategy document does not specify either an overall budget or a quantified target for business start-ups or job creation. The ministry of Labour is required to report on progress in its annual activity report. Following the launch of L4SI, the next steps will enable us to assess how this ambition is being translated into streamlined procedures, funding and new markets.
On the sidelines of the presentation of the government’s action plan, the 2026 Social Innovation Award was presented to Dalza sàrl SIS for its digital platform, which facilitates communication and coordination between parents, teachers and professionals supporting neurodivergent children.
