Epsilon Archive for Student Projects

Abstract

Ecuador faces persistent challenges of poverty, inequality, and informal employment that conventional economic models have failed to address. The Social and Solidarity Economy (SSE) is an alternative approach that prioritizes human wellbeing, cooperation, and community over profit, and has been constitutionally recognized in Ecuador since 2008. However, its practical implementation remains limited and underexplored in academic research.

This study examines how SSE initiatives, particularly cooperatives, operate within Ecuador's socioeconomic context. Through a qualitative multi-case study, data were collected from interviews with cooperative leaders, government representatives, and SSE experts, and analyzed using the PESTEL framework to understand how political, economic, social, technological, environmental, and legal factors shape these initiatives.

The findings reveal that cooperatives generate meaningful social and economic benefits for their members and communities, but face significant barriers, including weak institutional support, limited access to financing, and bureaucratic constraints. Based on these results, the study proposes concrete strategies to strengthen SSE initiatives and enhance their sustainability.

This research contributes to filling a gap in the literature on SSE in smaller developing nations in the Global South, offering insights relevant to practitioners, policymakers, and researchers working toward more inclusive and equitable economies.