DEVELOPMENT OF SOCIAL ENTREPRENEURSHIP IN UKRAINE

Iryna ZAHREBELNA, Alla SVITLYCHNA

Abstract


Introduction. Nowadays, the focus of business structures on profit by any means loses its relevance. After all, there is a process of formation of a new ideology of entrepreneurial activity, based not only on the economic but also the social component. The development of social entrepreneurship in the country also affects the level of economic development. Entrepreneurs' willingness to take risky investments enables them to embody innovative ideas and large projects while simultaneously solving social problems. At the same time, the criterion of any social enterprise is self-sufficiency and financial stability, which positively influences the strategic development of the country.

Purpose. The purpose of the article is to substantiate the current state and prospects of the development of social entrepreneurship, to identify the characteristic features inherent in social entrepreneurship in Ukraine.

Results. It is stated that there is no one approach to the definition and principles of functioning of social entrepreneurship either in Europe or in Ukraine in particular. The phrase "social entrepreneurship" has entered the Ukrainian vocabulary only since 2004 after conducting a series of trainings with US experts on formation social enterprises by public organizations.

It is determined that the goal of social entrepreneurship is to solve social problems, and business with a social mission, first of all - to make a profit, and only then - to solve certain social problems.

The territorial peculiarities of placement of social enterprises in Ukraine are investigated, and it is determined that the largest number of them is concentrated in large cities and in Kyiv and Lviv region, and the most widespread organizational form of activity of social enterprises is sole proprietors, who spend, on average, 72% of funds from profit for reinvestment, and 15% for social purposes. The largest percentage of the proceeds is spent on social goals by NGOs and private association organizations (45% and 30%, respectively).

Originality. It has been summarized the main characteristics of activities aimed at solving social problems, starting with traditional business as a commercial structure, focused primarily on profit maximization, and ending with charity, which is focused purely on social goals. It has been united the classification features that distinguish social entrepreneurship and business with a social mission, unlike existing approaches, clearly distinguish their common features (income from own activity, independence from external sources of funding) and different (type of structure, objective function, distribution of profits).

The research of organizational forms of activity of social enterprises of Ukraine, in particular, their peculiarities of distribution of profits has been further developed.

Conclusion. The development of social entrepreneurship in Ukraine has significant prospects, as the lack of sufficient financial resources in the country encourages communities to step up and find innovative approaches to solving their problems. The availability of a large number of labor resources, in particular, people with little involvement in traditional business (older people, internally displaced persons, people with disabilities, national minorities, large families) and significant support from international foundations and organizations encourages the creation and development of social entrepreneurship.

In our view, the primary task for the development of social entrepreneurship in Ukraine is to draw the attention of the public and the state to social problems and opportunities for solving them. With the help of the mass media and communications it is necessary to actively carry out educational work in this direction, forming a socially responsible consciousness in the society. Supporting social enterprises at the state, regional and local levels, developing and adopting specific long-term programs for their development can be a powerful impetus for solving numerous social problems.


Keywords


social entrepreneurship, business with social mission, social responsibility, organizational forms of activity, reinvestment, social projects, social goals, economic development

References


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