Blog author: Taula d’Entitats del Tercer Sector Social de Catalunya & Cluster Digital
The social economy sector is diverse, encompassing multiple areas of intervention, target groups, stages of organizational maturity, economic and structural capacities, and social and political priorities. Despite its commitment and capacity, the sector faces significant challenges, including financial precarity and high economic dependency on public administrations and self-generated funds, as highlighted in the Barometer of the Social Economy Sector of Catalonia, developed by Taula d’Entitats del Tercer Sector Social de Catalunya.
Funding Sources
A Crucial Sector with Limited Capacity for Innovation
Currently, social economy organizations provide services and support to 1.9 million people at risk of social exclusion in Catalonia. They allocate 75% of their expenditure to direct care, thereby compensating for gaps in the welfare state through support services unavailable in the public sector. While this prioritization is essential, it has also limited investment in organizational infrastructure, limited capacity to retain specialized personnel, strategic planning, and innovation—key factors for initiating, consolidating, and scaling transformation processes.
Additionally, the sector’s financing largely depends on funding streams influenced by political stability and shifting socio-economic contexts. While priorities such as digital and ecological transitions align with European mandates and the Sustainable Development Goals of the 2030 Agenda, there have been no follow-up programs after the European Recovery Fund (Next Generation). This funding opportunity for digital transformation has placed social organizations in direct competition with businesses and public entities that have dedicated project proposal teams.
In this context, securing the necessary funding to initiate capacity-building processes and drive transformation has become increasingly difficult, particularly in a society more exposed to vulnerability following the COVID-19 crisis, energy crisis, and ongoing armed conflicts. As the social economy sector expands its reach each year, it requires this transformation to streamline decision-making processes, enhance data security, and establish procedures that improve competitiveness and efficiency.
To advocate for political action that effectively supports the digitalization of Catalan social economy organizations, it is crucial to identify the sector’s precise needs. Some of the main challenges identified through Taula’s working groups, surveys conducted during training sessions, and insights from the m4Social (the digital innovation project from Taula del Tercer Sector) community include:
- The need for transformation and modernization of digital tools.
- Capacity-building for personnel.
- Automation of administrative processes and the creation of systems that connect different public administration departments with social economy organizations to improve service delivery.
- Improved online communication and visibility.
- Enhanced cybersecurity awareness and financial support for compliance with security regulations.
- Improved data collection and analysis systems:
- Lack of open databases.
- Insufficient knowledge of how to utilize and capitalize on open data.
- A lack of guidelines, tools, and knowledge on the interoperability between digital systems used by the social economy sector and public administration.
- Identification of funding sources to improve processes and establish prototyping initiatives.
These challenges are being further explored through the DO Impact project. As partners in this European initiative, we have conducted a survey to determine which digitalization needs are shared across countries, which issues should be escalated to the European Union, and what training pathways are most suitable to ensure access to digital skills. The final conclusions will be available soon, but the survey remains open for participation.
What Is the Current State of Digitalization Within the Social Economy Enabling Organizations in Catalonia?
Social economy organizations in Catalonia recognize the urgency of digital transformation but struggle with financial and structural limitations that hinder their progress. The main challenges include the lack of specialized digital training, limited technological infrastructure, and difficulties in securing long-term funding for digital innovation. Moreover, there is a critical need for tools that facilitate interoperability between social organizations and public administration, ensuring seamless service provision.
Priority areas for action include:
- Capacity-building: Equipping organizations with digital skills to improve efficiency and service delivery.
- Infrastructure investment: Providing the necessary technological tools and platforms.
- Data management and security: Strengthening data collection, analysis, and protection mechanisms.
- Funding access: Developing sustainable financial models that support digital transformation.
- Collaboration and knowledge-sharing: Establishing networks that enable social economy organizations to learn from best practices and access digital resources.
The Role of Taula and Cluster Digital in DO Impact
The DO Impact project presents a valuable opportunity to bridge the gap between digital transformation needs and the available resources and expertise. Taula and Cluster Digital de Catalunya play a crucial role in this initiative by:
- Mapping digitalization needs: Identifying key areas where organizations require support.
- Facilitating knowledge transfer: Connecting social economy organizations with digital experts and European partners.
- Providing specialized training: Delivering capacity-building programs tailored to the sector’s needs.
- Advocating for policy change: Elevating the sector’s digital transformation needs to the European Union.
Through DO Impact, a structured approach to digitalization will be implemented, focusing on practical training, collaboration between European digital stakeholders, and the empowerment of social economy organizations. This marks the beginning of a transformation process that will enable the sector to continue its essential work with and for people in need, ensuring that digitalization becomes a driver of efficiency and inclusivity.
