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Purpose

The purpose of this paper is to evaluate the social impact of the social cooperative enterprise (SCE) “Modousa” in a marginal agricultural area of Lesvos Island, Greece. Focusing on post-productive agriculture and collaborative rural development, the study investigates how Modousa leverages local resources – particularly olive oil – to strengthen local capital, foster community-led sustainable development and address structural challenges. By analyzing Modousa as a model of social entrepreneurship, this paper aims to highlight its potential to empower rural communities, promote niche markets and contribute to broader discussions on sustainable rural development and social innovation.

Design/methodology/approach

The study uses participatory observation and secondary data analysis, complemented by unstructured interviews with Modousa’s founding members and local civil society representatives. The researcher participated as an observer in Modousa’s activities, balancing insider access with ethical considerations. Events were observed in physical and digital spaces to document local perceptions and practices. Data were analyzed thematically to explore how Modousa functions as a social solidarity economy (SSE) initiative in Lesvos, based on principles of collective ownership, democratic management and community benefit, following relevant European and Greek SSE frameworks.

Findings

The findings show that Modousa strengthens local capital by mobilizing natural, cultural, social and economic resources, fostering community-led development in a marginalized rural area. Its model of collective ownership and democratic governance helps mitigate structural challenges and global market pressures. Modousa promotes olive oil as a socio-cultural product, enhancing local identity, creating niche markets and building solidarity networks. The enterprise demonstrates how social entrepreneurship can drive sustainable development by leveraging territorial assets and engaging local actors. Overall, Modousa’s approach contributes to rural revitalization, encouraging a transformative culture of collaboration and resilience in peripheral agricultural regions.

Originality/value

This study offers original insights into how SCEs like Modousa can function as agents of rural transformation in marginalized agricultural regions. By combining participatory observation with in-depth interviews, it examines the interplay between social entrepreneurship, local capital mobilization and community-led development. The research highlights the innovative use of olive oil as both an economic product and a cultural asset, contributing to place identity and local resilience. The findings provide a practical framework for policymakers, practitioners and scholars interested in applying similar SSE models to promote sustainable development in other rural contexts.

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