THE ROLE OF SOCIAL ENTREPRENEURSHIP IN THE RECOVERY OF THE UKRAINIAN ECONOMY AFTER MILITARY DESTRUCTION

Abstract

The article explores the theoretical, methodological, and institutional foundations of social entrepreneurship as a driving force for the post-war reconstruction of Ukraine’s national economy. It substantiates that social entrepreneurship represents a specific form of economic activity that combines commercial mechanisms with a social mission aimed at addressing public needs, increasing employment, and improving community well-being. Social enterprises embody a hybrid structure of goals – economic and social – and create social value through innovative business models focused on public benefit. It has been proven that, under wartime conditions, social enterprises act as stabilizing factors for local economies by mobilizing community resources, generating employment for vulnerable groups (internally displaced persons, veterans, and people with disabilities), and enhancing social capital. In the post-war context, social entrepreneurship becomes a key mechanism of inclusive growth that ensures synergy between government institutions, business, and civil society in rebuilding the nation’s socio-economic potential. The study finds that the institutional environment for social entrepreneurship in Ukraine remains fragmented: the absence of specific legislation, a lack of financial instruments, and weak coordination between government agencies and local communities hinder the sector’s development. However, the formation of a clear legal framework, the expansion of financial and organizational support mechanisms, and the establishment of regional hubs and clusters of social innovation constitute a foundation for integrating social entrepreneurship into the national recovery strategy. The research highlights the innovative potential of social entrepreneurship in the context of digital transformation and global integration. It demonstrates that the application of digital technologies, social impact bonds, public-private partnerships, corporate social responsibility mechanisms, and systems for evaluating social impact enhance the efficiency and sustainability of this sector. Social enterprises are identified as catalysts for the modernization of the national economy, capable of combining economic efficiency with social justice and the human dimension of development. It is concluded that social entrepreneurship is one of the core instruments for rebuilding Ukraine after the war. Its evolution reflects the transition toward a socially oriented economic model grounded in the principles of inclusiveness, solidarity, innovation, and long-term sustainability.