Sociétés Coopératives d'Intérêt Collectif: The Arrival of Social Enterprise Within the French Social Economy

The French nonprofit sector has been in existence since July 1, 1901 when the legal form of associations was created. Since then, as a consequence of legal, fiscal, and cultural restrictions, it has developed characteristics that are markedly different to those of other nonprofit sectors. This paper focuses on one such characteristic that makes the French nonprofit sector virtually unique, that is the restrictions imposed on social entrepreneurism. It was not until July 17, 2001 that a new organizational form called Sociétés Coopératives d'Intérêt Collectif (SCIC) was created specifically to address this anomaly. This paper discusses the context within which this organizational form was created, and the potential advantages that it offers in respect to facilitating the development of social enterprises. The paper also explains why a specific organizational form was required and why it was placed outside the nonprofit sector. It concludes by identifying potential problems concerning organizational effectiveness in delivering socially beneficial services and the difficulties that may arise as a consequence of SCIC's unique governance structure.