Abstract

Globalization of economic processes and its socially-oriented development became the driving force behind the transformation of socio-economic systems, which are resulted in the emergence of innovative forms of implementation of business initiatives – social entrepreneurship, which is aimed at meeting social needs along with doing business. Despite the relatively long development of social entrepreneurship as the practical activities, theoretical and methodological research in this area is very limited in Ukraine, based on advances in scientific and legal field in Europe and America. Critical analysis presented suggests the ambiguity and controversy socio-economic category of “social entrepreneurship” at the same time; it should be noted common features that distinguish most authors: entrepreneurship is aimed at solving social problems involving representatives of social groups to participate in it with funds received from this activity (the principle of self-sufficiency and financial independence); innovative way to solve social problems, which insists the founder of Ashoka – B. Drayton; the possibility of spreading to other regions and countries, economies of scale. From represented signs social entrepreneurship, author of the most impressed by the approach, where, besides the social orientation of (social aspect), economic feasibility (economic dimension) and innovative solutions (innovative aspects) take into account the possibility of spreading to other territories, areas, etc. Thus, social entrepreneurs – enterprising individuals who walked on business not on its own enrichment, and to address pressing social needs and the creation of social welfare. Treatment characteristics social entrepreneurship that shown in fig. 1 indicates the presence of the difference between normal business, charitable organizations, socially responsible businesses and, directly, in social entrepreneurship, combining a social mission to create and business mechanisms for its software. Accordingly, it requires a distinction these concepts. Of course, there isn’t only correct model of doing social business. Each country individually, nationally addresses this issue by using different regulatory mechanisms and support in this area. In this regard, there are four models of social entrepreneurship. The absence of regulatory framework of activity of subjects social entrepreneurship let’s say about official lack it’s in Ukraine, but in fact this activity becomes prevalence in recent years, especially with the beginning of the armed conflict in the East of our country. Based on the analysis of the theoretical heritage and of domestic practices of social business has been formed problematic field development, which presented the following areas: in the Ukrainian legislation is not legal prerequisites for maintaining social entrepreneurship, which does not clearly define the subject of social entrepreneurship; theoretical developments in this area are mostly works of foreign scientists; lack of interest of the state and local authorities in the development of social entrepreneurship leads to absence of reasonable mechanisms for maintenance and revitalization in the area, as well as appropriate infrastructure reflecting passive role in the formation referred state institutions in Ukraine; low level of awareness of various sectors of society on social entrepreneurship and its role in social and economic processes; weak diversification of financial sources, making it difficult to launch the social business, and limited funding from the budgets of all levels; weak human potential due to lack of high school education training programs in the field of social entrepreneurship. Defined by the authors perspective requires the comprehensive approach to solving by combining in the single mechanism for the state, local authorities, businesses, charitable organizations, foundations, and community. The authors have developed generalized roadmap development of the social entrepreneurship. The priority areas developments of the social entrepreneurship are designed for four years (2017-2020). The mentioned areas corresponding to four key problematic issues to be resolved over a specified period, namely: providing support for subjects of social entrepreneurship that are starting out; development of legal regulatory framework for social entrepreneurship; increase availability and diversification of financial resources for social entrepreneurship; organizational and economic aspects of creation of effectively ecosystem functioning effectively. The road mapping is generalized character and can be specified for each area. It is recommended for the general public: the state, local governments, international institutions, subjects of social entrepreneurship, local and charitable foundations. By deadline is coincides with the main strategic documents of Ukraine.  

Keywords: social entrepreneurship, innovative forms of business, signs of social entrepreneurship, models of social entrepreneurship, roadmap

JEL Classification: M13, O3.

Cite as: Smachylo, V., Khalina, V., & Kylnytska, Y. (2018). Development of the social entrepreneurship in Ukraine as an innovative form of the business. Marketing and Management of Innovations, 1, 235-246. https://doi.org/10.21272/mmi.2018.1-17

This work is licensed under a Creative Commons Attribution 4.0 International License

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