The Study on Scoping the Socio-economic Performance of the EU Proximity Economy is out!

The recently published study on Scoping the Socio-economic Performance of the EU Proximity Economy, has been commissioned by European Innovation Council and SMEs Executive Agency (EISMEA) and Directorate General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW).

The primary goal of the study was to evaluate the proximity economy's socio-economic weight and its role as a sustainable and innovative ecosystem. 

The proximity economy is a human-centric ecosystem which consists of the production, distribution and consumption of goods and services within short value chains, enabled by, and based on locally rooted social interactions within a geographical area of perceived closeness. In other words, the proximity economy refers to a community-oriented approach where goods and services are produced, distributed, and consumed locally, fostering sustainability and resilience within a region.

The analysis focuses on estimating the potential size of the proximity economy. And provides an overview of the different policies and approaches which enable the development and success of the proximity economy. The study examined the policies and practices within the 27 Member States of the EU (EU27) and the United Kingdom (UK). The policy mapping identified 168 policies across the EU27 and the UK, showcasing different examples of policies, initiatives, and approaches that support a proximity economy ecosystem and align with the new definition and description of the proximity economy. 

Five case studies were also developed, showcasing the business models of the proximity economy and allowing examination and testing of various theories behind the proximity economy concept, including their impact by various dimensions including social and environmental. The study has also developed a set of metrics to measure the performance of the proximity economy. 

Overall, the proximity economy ecosystem demonstrates a credible approach for developing more sustainable and resilient localities and regions across Europe, for which there is a growing appreciation. At the same time, there is still a considerable scope at both the European and national levels for a supportive policy approach that can unlock its full potential.  

This study can help further the discussion regarding this ecosystem and serve to increase understanding of this ecosystem and its potential among policymakers and other potential proximity economy actors. It can also enable clearer communication of ideas, strategies, and practices, making it easier for diverse regions to learn from each other's experiences and adopt successful models for developing proximity economies.  

You can browse the executive summary of the study in English, French and German as well as the framework for evaluating and monitoring the proximity economy, including through the identification of key performance indicators (KPIs).