The Role of Social Entrepreneurship in Advancing Economic Growth and Sustainability Amid Instability

Abstract

Relevance. Social entrepreneurship is currently one of the most effective ways to solve social problems, especially for countries with economies in transition, where instability increases the importance of new approaches to managing economic and social processes. The study's relevance is driven by the need to find sustainable mechanisms of economic growth in the context of global instability and social challenges.

Aim. This research article aims to analyse the impact of social entrepreneurship on the economic growth of the EU countries and Ukraine, which is in a state of prolonged war, and to substantiate its importance for the socio-economic development of countries in conditions of instability.

Methods. To carry out a comprehensive qualitative analysis, several general scientific methods of knowledge were used, including synthesis, systematisation, generalisation, and comparative analysis of different EU countries. As part of the quantitative analysis, an adapted method of calculating the National Social Impact Index (NSII) was applied, allowing for a balance between economic efficiency and social outcomes in comparing EU member states.

Results. According to the results of the calculations, the highest values of the social impact index are demonstrated by Bulgaria (142.97), Hungary (137.30), Latvia (131.77) and Poland (122.85), which indicates a significant contribution of social enterprises to socio-economic development, in contrast to the indicators of Denmark (31.59), Germany (28.69) and Estonia (26.75). Thus, a high index value is typical for countries with developed SME support policies. In contrast, a high capacity for social sector growth characterises countries with a high average turnover and fewer enterprises.

Conclusion. The main direction for developing social entrepreneurship to ensure economic growth in Ukraine in the context of war is developing and implementing a social entrepreneurship development strategy in the overall state system. This involves introducing clear criteria for defining social enterprises, creating a specialised regulatory framework, harmonising national legislation with European standards, and creating incentive financial and tax mechanisms to support them.

Keywords: social entrepreneurship, social value, economic growth, socio-economic development, state support, financing, investment attractiveness, sustainable development, instability.