SOCIAL ENTREPRENEURSHIP AS A DRIVER OF SUSTAINABILITY AND SOCIAL SAFETY: THE CASE OF UKRAINE
DOI:
https://doi.org/10.17721/1728-2667.2026/229-2/3Keywords:
entrepreneurship (SE), social enterprise, human capital, social security, social impact, economic-mathematical model, sustainability, sustainable developmentAbstract
Background. In response to the unprecedented challenges arising from the war in Ukraine, social entrepreneurship has emerged as a multifaceted instrument for social transformation, serving as a catalyst for sustainable development and social resilience. The primary objective of this research is to develop and validate a comprehensive economic-mathematical model to assess the impact of social entrepreneurship on the systematic restoration of human capital within the specific constraints of wartime and post-war reconstruction.
Methods. The study integrates several foundational theoretical frameworks: human capital theory, the multiplier approach, and the concept of social innovation. The methodological core consists of a synthesized system dynamics model that includes the War-Adjusted Social Return on Investment (SROI) framework, adapted for high-risk environments; the social entrepreneurhip multiplier method based on input-output analysis; and a modified logistic equation for dynamic forecasting of sector growth. The structural assessment is conducted through a three-level hierarchy, identifying micro-, meso-, and macro-level socio-economic effects.
Results. The empirical validation of the developed model confirms that social enterprises generate a synergistic triple-bottom-line effect. Key findings indicate a social entrepreneurship multiplier of 1.38, meaning that every unit of investment generates 1.38 units of aggregate economic impact. The Social Return on Investment (SROI) coefficient reached 3.28, demonstrating that social enterprises are highly efficient tools for addressing societal crises. Dynamic modeling predicts a baseline increase in the number of active social enterprises from 1100 in 2025 to approximately 3100 by 2040, with an optimistic potential exceeding 3800 units. The integrated effect is structured as follows: micro-level (55%), macro-level (41%), and meso-level (4%).
Conclusions. The proposed War-Adjusted SROI and multiplier models offer a robust analytical toolkit for policymakers to prioritize social investments. The significant macro-level impact (41%) highlights the strategic importance of social enterprises in enhancing national social safety and ensuring budgetary sustainability. These findings suggest that state policy should shift toward fostering a supportive institutional environment for social innovation.
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