T he DNA of popular and solidarity economy in Ecuador: exploring the key features of an alternative economic system

Abstract

The Popular and Solidarity Economy (PSE) seeks collective well-being and the carrying out of economic activity based on solidarity principles. In Ecuador, the Constitution recognizes this sector, but an integral public policy for promotion has not been implemented due to the lack of statistical information describing its members. The literature addressing this topic is limited, with few studies focused on the financial sector. As a result, the real sector —composed of organizations, associations, and cooperatives of production of goods and services— has been underexplored. Previous studies have predominantly adopted a qualitative approach, with quantitative approaches being less frequent. The objective of this research is to determine profiles of the organizations comprising the real sector of the PSE, using cluster analysis. Data from the National Survey of PSE Organizations (ENOEPS) from the year 2020 served as source. The results indicate that the real sector of the PSE consists of 6 types of profiles. This sector exhibits significant diversity in its economic activities and factors such as its relationship with public procurement, the implementation of solidarity practices, and its predominantly female composition. The study concludes that the PSE is not an attractive option for the economically active population, as it does not provide significant income due to the limited capacity of PSE organizations to generate it; at best, these income sources are secondary or complementary. Therefore, an integral state intervention is required, encompassing both productive and organizational aspects, to strengthen the PSE through public policies promoting the integration of PSE organizations into the national economy.