Earlier quoted context omitted.
Those are perspectives grounded in history, but I think you’d have to qualify socialism in that case as “market socialism” or “democratic socialism” as it’s understood today. Marx did lay out socialism as the next stage to follow capitalism but didn’t provide detail about how it was to work, which led to the various types of socialism we have today. Still, many argue that these are all essentially vanguard movements…
It's been a while since my Marxism-Leninism class so caveat emptor, but I believe the role of socialism was limited. There supposed to be transitional phase from coercive proletarian state to truly classless society aided by "socialist mode of production", but not much after that. The socialist and social-democratic (as you correctly put it) movements promoted socialism as end-game within bourgeois/capitalist social…
https://www.marxists.org/archive/fromm/works/1961/man/ch06.h...
Anyway, the type of socialism you’re referring to is associated with the cooperative movement which led to things like mutual insurance and credit unions. I fully support these types of systems in which people with common interests and a common communitry create structures to support themselves. I think this is the best way to create structures with community-based values that compete with for-profit industries which don’t always represent their customers.