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Social entrepreneurship as an enabler of social inclusion

Sep 29, 2025 | News

Across the European Union (EU), young people continue to face persistent labour market barriers, including high unemployment, limited access to tailored support, and regional inequalities. In this context, social entrepreneurship stands out as a vehicle for systemic change.

Social entrepreneurship is increasingly recognised within the EU as a powerful mechanism to promote youth inclusion, employment, and empowerment. As a hybrid model combining economic activity with a social mission, it offers an alternative pathway for young people -particularly those with disadvantaged backgrounds-, to address societal challenges while building sustainable livelihoods.

Challenges and enablers of youth social entrepreneurship

Alexandra Yaghil, policy expert at AEIDL and partner of the SERIGO project, participated in the final conference of the SESI (Social Entrepreneurship for Social Inclusion) project, organised by YouthProAktiv at the European Parliament in Brussels. SESI was a two-year EU-funded project exploring how youth-led social enterprises can act as drivers of social innovation while promoting engagement and economic resilience among marginalised young people.

The expert panel included Bart Leyen, PhD candidate at Vrije Universiteit Brussel (ULB), and Jill Juliette Van den Brule, consultant at UNICEF. Together, they discussed the persistent challenges and enablers of youth social entrepreneurship.

key challenges identified included national and local disparities in legal frameworks, access to finance, unstable funding, lack of networking, mentoring structures, capacity building, gender barriers, and recognition of non-formal education. Mental health was also highlighted as a significant concern, particularly among young people facing multiple disadvantages.

Enablers for youth social entrepreneurship included flexible funding, cross-border collaboration, mentorship, learning from peers, intergenerational dialogue, and the inclusion of young people in governance systems. Research indicates that participatory funding models are 40% more effective when youth are included in decision-making processes.

“Entrepreneurship skills are life skills,” Alexandra Yaghil, policy expert at AEIDL and SERIGO partner.

The role of SERIGO

The SERIGO project is supporting the social inclusion of young people in Poljčane, a rural municipality in Slovenia, by developing and testing socially innovative models and tools. Poljčane faces persistent challenges: poverty risk, an ageing population, youth unemployment, and limited social and care services, further constrained by its protected natural areas. These issues particularly affect young people, leading to social exclusion and limited opportunities. Many youth leave Poljčane because they lack spaces and opportunities to realise their ideas and potential.

The SERIGO pilot in Poljčane focuses on bridging community divides and fostering intergenerational collaboration. Activities include collaboration skills workshops for local stakeholders, knowledge-sharing sessions between youth and elders (covering topics like cooking, herbalism, digital skills, and storytelling), informal community gatherings, and co-creation labs where young people and older residents design new local initiatives together. These efforts aim to strengthen social ties, encourage active participation, and give young people opportunities to realise their ideas locally.

Social entrepreneurship: beyond jobs

Social entrepreneurship is not only a strategy for job creation but a framework for empowerment and structural transformation. It enables young people to engage meaningfully with their communities, challenge exclusionary structures, and co-create solutions to social issues. Research shows that youth-led social enterprises can foster upward mobility and strengthen a sense of belonging, particularly among vulnerable groups such as migrants, people with disabilities, the Roma community, or the long-term unemployed.

By investing in youth-led social enterprises, Europe can unlock the potential of young people to drive inclusive and sustainable change. Projects like SERIGO and SESI illustrate how local initiatives can have a lasting impact on young people and their communities.

Reference:

YouthProaktiv. (2025, September). Social entrepreneurship as an enabler of social inclusion [Policy brief].