Social Entrepreneurship in Providing Employment: the Experience of Poland and Ukraine

Abstract

Social enterprises play a key role in addressing social, environmental, and educational challenges by leveraging social capital to create high-impact solutions. Examples of social enterprises in Ukraine and Poland demonstrate how innovative approaches combined with social initiatives contribute to solving pressing issues and fostering sustainable development in local communities. The study examines the dynamics of social entrepreneurship development in Ukraine within the context of institutionalizing this form of economic activity to increase employment. It has been established that the development of social entrepreneurship in Ukraine remains insufficient and requires both government support and public recognition. The conceptual foundation of social entrepreneurship is based on understanding the social responsibility of businesses to society. This activity combines entrepreneurial spirit with a non-profit character, directing all income toward reinvestment. The research identifies development pathways for social entrepreneurship in Ukraine and Poland, outlining prospects for its institutional establishment. Analysis reveals that the diversity of statuses, forms, and sectoral specifics of social enterprises in Ukraine is shaped by the quality of social capital. The institutional structure and organizational-economic functionality of social enterprises in Poland were analyzed. It was emphasized that classic social enterprises are virtually absent in Ukraine due to a lack of specific institutional and legal regulations. Instead, hybrid structures such as social cooperatives or farming enterprises for veterans operate in line with certain social entrepreneurship criteria. The study highlights the importance of comprehensive institutional support for social entrepreneurship in both countries, contributing to its effective development and increasing social and economic benefits.