CURRENT STATE AND PROSPECTS OF DEVELOPMENT OF DOMESTIC SOCIAL ENTREPRENEURSHIP

Abstract

The authors set a goal to study the current state, problems and prospects for the development of modern Ukrainian social entrepreneurship. In the course of studying the problem the methods of logical generalization, analysis, comparison and synthesis were used to assess the level of development of domestic social entrepreneurship. Awareness of the population and perception of the authorities create the impression of Ukrainian social business as an amateur, fragmentary, fragmented and very unstable activity. Meanwhile, social enterprises are thriving. This process goes in two directions: through self-organization of economic activity of united representatives of social groups in a difficult social situation, and through initiation of permitted economic activity on the basis of nongovernmental public non-profit organizations. The latter path is the most common and widespread. It is non-profit NGOs that provide the greatest support to social business, involving them free of charge in social projects, conducting training, information and counseling on all issues of doing business, creating business incubators, hackathons, administering startups on microgrants, etc. However, if social entrepreneurship is developing dynamically in terms of achieving high social performance, in the purely economic sphere, development is still slow. The main problem is the lack of access of social enterprises to financing (especially cheap loans) and the reduction of the tax burden (at least temporarily, for the time of economic stability). Based on this, social business is now trying to strengthen its partnerships with traditional enterprises to protect themselves from economic crises. Another urgent need of social entrepreneurs is to strengthen the role of the state in the development of social entrepreneurship. The development of social business in Ukraine was objectively ahead of the legal framework and the position of state policy in the socio-economic sphere. Despite the dynamic development of social business, the state does not perceive it at the legal level and at the level of policy development, development strategy, does not see its contribution and high socio-economic mission. Therefore, social business is more economically sensitive than traditional business. In addition, it is necessary to introduce a system of state support for social business, primarily by reducing the tax burden. It will also have a positive impact on economic stability and the dynamics of social entrepreneurship. It is clear that today it is necessary to amend the current legislation to maintain the positive dynamics of social business.