Social enterprise: everything you need to know

1) Quick definition

Entreprise sociale et solidaire (ESS). This is not a legal form, but a way of doing business: a purpose other than profit-sharing alone, democratic governance, and supervised management (profits mostly reinvested, reserves, non-distributable liquidation surplus, etc.). "Legal" players (associations, cooperatives, mutual societies, foundations) and certain commercial companies can fall under the SSE umbrella if they meet the conditions set out in the law of July 31, 2014.

Entreprise solidaire d'utilité sociale (ESUS). This is not the whole of the SSE: it is an approval for structures whose main objective is social utility, with a significant impact on the income statement, a capped remuneration policy for employees or managers, and capital securities not admitted to a regulated market.

2) The legal framework: what the law of July 31, 2014 (and its updates) changes.

Law no. 2014-856 of July 31, 2014 recognized the SSE as a "mode of entrepreneurship and economic development" and opened up the SSE to commercial companies provided their bylaws record a purpose other than profit alone, democratic governance and specific management principles (reserves, majority reinvestment, rules on capital and liquidation surplus).

For SSE (social and solidarity-based economy) trading companies, the law provides for :

allocation of at least 20% of profits to a development fund (mandatory statutory reserve) until reserves reach a certain threshold,
allocation of at least 50% of profits to retained earnings and mandatory reserves,
restrictions on capital redemption/reduction and share buybacks, guaranteeing the primacy of the project over dividend distribution.

Update 2025: the legal definition of social utility (article 2) has been clarified. It now includes sustainable development, citizenship education, territorial cohesion, cultural promotion and international solidarity, provided the activity has the required impact.

3) Who are "SSE companies"?

By law: associations, cooperatives (SCOP, SCIC...), mutual societies, foundations.

Also: commercial companies can register with the RCS as "SSE companies" if their bylaws contain the required clauses and if they comply with democratic governance and management rules (compulsory reserves, reinvestment, etc.).

4) "Social utility enterprise" (ESUS) approval

4.1 Cumulative conditions

To obtain ESUS accreditation, the company (association, cooperative, foundation or SSE commercial company) must :

Pursue social utility (as defined by law) as a primary objective,
Prove that this social utility has a significant impact on the company's income statement or financial profitability,
Have a controlled compensation policy: average of the 5 highest salaries ≤ 7× the annual SMIC (or the industry minimum if higher) and highest salary ≤ 10× this same threshold,
Unlisted equity securities (not admitted to a financial instruments market),
Include these requirements in the bylaws.

Beneficiaries "by right" (subject to conditions): integration companies, ETTIs, integration workshops and sites, neighborhood regies, adapted companies, etc.

4.2 Duration, procedure and publication

Duration: 5 years (or 2 years if the company is less than 3 years old at the time of application).

Authority: instruction by DREETS (competent departmental unit).

Publication: the approval decision is published in the prefecture's "Recueil des actes administratifs".

4.3 Practical benefits of ESUS approval

Easier access to solidarity-based employee savings, certain support schemes (DLA, guarantees, repayable advances) and tax benefits (for eligible investors); public procurement contracts may also be reserved for SSE structures.

5) How does a commercial company become an "SSE company"?

In addition to the "classic" articles of association, the company must incorporate the clauses set out in Decree no. 2015-858 of July 13, 2015: corporate purpose meeting social utility (art. 2), democratic governance, majority allocation of profits to the business, non-divisible nature of mandatory reserves, and implementation of the management principles laid down by law. Once compliant, it can be registered with the RCS under the heading "ESS".

6) Practical checklist (ESS & ESUS)

To be an "SSE company" (commercial enterprise)

Your articles of association state a purpose other than the sole distribution of profits.
You formalize democratic governance (information/participation of stakeholders).
You set up the required reserves (≥20% development fund, ≥50% retained earnings + reserves).
Your bylaws specify that reserves cannot be shared and the rules governing liquidation surpluses.

For ESUS approval

Main objective: social utility (in the updated 2025 sense).
Significant impact on income statement justified (e.g. reduced margins due to social tariffs, support costs, etc.).
Compensation policy: compliance with ceilings (7× / 10×).
Unlisted equity securities.
Clauses in bylaws + DREETS file (with supporting documents).

7) Use case: mobilize your teams around a solidarity challenge

In a socially responsible company or one committed to the SSE, the mobilization of employees is decisive for the social utility of the SSE (collections, impact weeks, international solidarity, health prevention, circular economy...).

With OuiLive "Business in game mode", you can deploy a 100% mobile challenge (over 200 templates) in just a few minutes: learning content, impact and sustainable development challenges, quizzes, rankings and rewards to stimulate participation. Analytics enable you to measureengagement and link the operation to your CSR and HR KPIs (participation, progress, actions taken). It's an operational lever for documenting impact and ultimately securing your ESUS file (heading "significant impact on income statement" and proof ofengagement).

8) Frequently asked questions (FAQ)

What's the difference between SSE and ESUS?

The SSE is a perimeter of companies (legal + eligible commercial companies) with rules of governance and management. ESUS is an approval for structures whose main objective is social utility, and which meet additional financial and statutory criteria.

How long does ESUS approval last?

5 years, or 2 years for structures less than 3 years old, with publication in the Recueil des actes administratifs.

What proof is there of a "significant impact" on the income statement?

Justifying the costs and/or renunciations (social rates, support, unbilled time, local partnerships, etc.) that reduce profitability through social utility choices. This is a central point of the dossier.

Can a joint-stock company be an ESUS?

Yes, if it is an SSE company (bylaws compliant) and complies with ESUS criteria, in particular the non-assessment of capital securities and the capped remuneration policy.

Sources :

HR and QWL

CSR

Communication

Sales