Development of social entrepreneurship in Ukraine

Aspects of the development of social entrepreneurship in the context of the concept of social responsibility. Using the capabilities and resources of big business to support it. Essence, signs and directions of development of entrepreneurship in Ukraine.

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Розвиток соціального підприємництва в Україні

Аранчій В.І.

Ігнатенко М.М.

Анотація

Предметом дослідження є теоретичні та практичні аспекти розвитку соціального підприємництва у контексті концепції соціальної відповідальності.

Метою роботи є визначення сутнісних ознак та чинників розвитку соціального підприємництва у контексті концепції соціальної відповідальності для використання можливостей і ресурсів великого бізнесу для його підтримки.

Методологічною основою статті стали основні теоретичні й методологічні положення економічної науки, нормативно-законодавчі акти України, праці провідних зарубіжних і вітчизняних науковців з економіки, маркетингу та менеджменту соціальних підприємств і соціальної відповідальності бізнесу.

Результати роботи. Визначено сутність, ознаки та напрями розвитку соціального підприємництва в Україні. Виявлено недостатні темпи й сфери його поширення. Обґрунтовано форми участі великого бізнесу у його підтримці у контексті здійснення соціальної відповідальності.

Галузь застосування результатів. Результати можуть бути використані підприємствами, об'єднаними територіальними громадами, регіональними та державними органами влади, неурядовими організаціями.

Висновки. Визначено, що соціальні підприємства формують особливий сектор підприємницької діяльності, створюючись з метою вирішення соціальних проблем. Вони набувають все більшого поширення й можуть спиратися не тільки на власні ресурси й можливості своїх учасників. Обґрунтовано, що це може бути велика й тривала підтримка великого бізнесу у формі стартапів, аутсорсингу тощо.

Ключові слова: соціальне підприємництво, концепція, соціальна відповідальність, бізнес, аутсорсинг, стартапи, розвиток, бізнес.

Развитие социального предпринимательства в Украине

Аранчий В.И., Игнатенко Н.Н.

Аннотация

social entrepreneurship responsibility business

Предметом исследования являются теоретические и практические аспекты развития социального предпринимательства в контексте концепции социальной ответственности.

Целью работы является определение сущностных признаков и факторов развития социального предпринимательства в контексте концепции социальной ответственности для использования возможностей и ресурсов крупного бизнеса для его поддержки.

Методологической основой статьи стали основные теоретические и методологические положения экономической науки, нормативно-законодательные акты Украины, труды ведущих зарубежных и отечественных ученых по экономике, маркетингу и менеджменту социальных предприятий и социальной ответственности бизнеса.

Результаты работы. Определена сущность, признаки и направления развития социального предпринимательства в Украине. Выявлено недостаточные темпы и сферы его распространения. Обоснованно формы участия крупного бизнеса в его поддержке в контексте осуществления социальной ответственности.

Область применения результатов. Результаты могут быть использованы предприятиями, объединенными территориальными общинами, региональными и государственными органами власти, неправительственными организациями.

Выводы. Определено, что социальные предприятия формируют особый сектор предпринимательской деятельности, создаваясь с целью решения социальных проблем. Они получают все большее распространение и могут опираться не только на собственные ресурсы и возможности своих участников. Обосновано, что это может быть большая и длительная поддержка крупного бизнеса в форме стартапов, аутсорсинга и тому подобное.

Ключевые слова: социальное предпринимательство, концепция, социальная ответственность, бизнес, аутсорсинг, стартапы, развитие, бизнес.

Development of social entrepreneurship in Ukraine

Aranchij Valentyna, Ihnatenko Mykola

Annotation

The subject of the research is the theoretical and practical aspects of the development of social entrepreneurship in the context of the concept of social responsibility.

The purpose of the work is to determine the essential features and factors of the development of social entrepreneurship in the context of the concept of social responsibility for using the opportunities and resources of large business to support it.

The methodological basis of the article is the main theoretical and methodological provisions of economic science, regulatory and legislative acts of Ukraine, works of leading foreign and domestic scientists on economics, marketing and management of social enterprises and social responsibility of business.

Results of work. The essence, signs and directions of development of social entrepreneurship in Ukraine are determined. Revealed insufficient rates and scope of its distribution. The forms of participation of large business in its support in the context of social responsibility are substantiated.

The field of application of results. The results can be used by enterprises united by territorial communities, regional and state authorities, non-governmental organizations.

Conclusions. It is determined that social enterprises form a special sector of entrepreneurial activity, being created with the aim of solving social problems. They are becoming more widespread and can rely not only on their own resources and the capabilities of their members. It is substantiated that this can be a large and longterm support of a large business in the form of startups, outsourcing, and the like.

Key words: social entrepreneurship, concept, social responsibility, business, outsourcing, startups, development, business.

Formulation of the problem

Starting from the 70s of the last century, the concept of social responsibility (JI) began to be actively introduced into the theory and practice of entrepreneurial activity. It means a responsible attitude of any business entity to its products, partners, consumers, resources, environment, as well as voluntary financial assistance and other participation in solving certain socially significant problems. It is most often used by relatively large business entities and is called corporate. The formation of a special type of business - social entrepreneurship, which is becoming more widespread in modern times, is also aimed at solving social problems. Of course, they have significant differences and different philosophies and ideas of business, their mission is largely identical in addressing social issues. Therefore, it is advisable not to oppose or reject, but to consider, if necessary, social entrepreneurship in the context of social responsibility. Its implementation can encourage big business to support social enterprises.

Analysis of recent research and publications

The issues of formation and development of social entrepreneurship are relatively new for domestic economic science and economic practice, as well as entrepreneurship in general. They have been most actively studied by domestic and foreign scientists in recent decades. First of all, we are talking about the works of Bornstein D., Diza G., Koretsky A., Kudlay V., Liberty K., Marty I., Meira D., Nichols A., Austin D., Svinchuk A., Schumpeter J. and others. The works of these scientists highlight the factors of social entrepreneurship, its essence, priorities and objectives. Close to it is the topic of corporate social responsibility, which has a longer and more widespread practice and strong theoretical and methodological justifications. Currently, we are talking about the works of D. Bayura, O. Grishnova, M. Ihnatenko, A. Kolot, and other famous scientists. Therefore, both in theory and in practice, it is advisable to identify common factors and components of their implementation for effective management and implementation.

The purpose of the article is to determine the essential features and factors of social entrepreneurship in the context of the concept of social responsibility to use the opportunities and resources of big business to support it.

Presentation of the main research material

Social entrepreneurship in the classical, broadest definition is understood as entrepreneurial activity aimed at mitigating or solving social problems. It is not denied by another definition - it is based on a self-sustaining economic activity for the production of socially significant product or service with the use of innovative organizational and managerial and other solutions that turn for the benefit of society the service or mechanisms of its economic implementation. The ultimate goal of such activities - again, not so much to make a profit, as the production of a product or service designed to solve a social problem [1, p. 19].

The mission of social entrepreneurship is especially valuable in times of financial and economic crises, because at this time social problems are exacerbated and their solution becomes vital for the existence of large sections of the population, especially the middle class, represented mainly by small and medium entrepreneurs, office workers, professionals , creative intelligentsia; socially vulnerable groups of people; people with disabilities; young people. Their incomes fall significantly due to the curtailment of many activities and they are forced, therefore, to seek new forms of it, to some extent combining resources and efforts, implementing social projects and so on.

Thus, social entrepreneurship contributes to the creation of a favorable business environment, the formation of an active public position, the development and pursuit of innovation, ensuring social solidarity. Taken together, this allows you to emerge from crisis periods more gently, quickly, without devastating consequences and losses. Thus, the main idea of social entrepreneurship is to achieve social welfare and create favorable opportunities for this [2, p. 101]. On the other hand, it points to the need for social change, and its impact contributes to them in every way. A social entrepreneur not only seeks to achieve significant financial returns for his investors or for himself, but is engaged in increasing social capital. He seeks both less and more at the same time - values in the form of large-scale positive social transformations.

Given these definitions, it is advisable to identify and characterize the main components of social entrepreneurship:

Motivating factors of development in the form of a social problem that has existed in society for a long time due to the limited access of a certain target group to financial and other resources to solve it.

Development and implementation of a mechanism for innovative solution to a problem that violates a stable but unfair balance as the basis of the actual organization of a social enterprise.

Creating a new, sustainable balance that frees up resources for this target group and provides a better future not only for these people, but for society as a whole as a result of its activities.

Thus, social entrepreneurship is an activity that has the following strategic guidelines: social, market and innovation. Social enterprises, which create jobs for socially disadvantaged people, give them the opportunity to acquire work skills and knowledge in the field of management, career growth, and property rights, experts call «affirmative.» Most social enterprises in Ukraine provide jobs for representatives of target groups with which they are associated with their core business. Their main goal, like any other business structure, is to achieve positive financial and social results through investment.

In recent years, social entrepreneurship in Ukraine has become increasingly popular among the population as an effective mechanism for solving local social and economic problems of territorial communities. The key to its success and dissemination in Ukraine is to develop a national strategy for the development of social entrepreneurship, which would coordinate the efforts of all stakeholders - entrepreneurs, NGOs, donors and the state [3, p. 119]. It should also be clearly understood that the profits of a social enterprise are directed mainly to the development of business, public affairs or the solution of acute social problems. Such an enterprise operates in accordance with all the laws of business and is profitable, so it is not considered a charitable organization. It covers areas such as education, the environment, the fight against poverty, the protection of human rights, and so on.

The main reasons for the weak development of domestic social entrepreneurship are: lack of state support; lack of funds for its development; low level of social consciousness, first of all, misunderstanding of the value and efficiency of this type of entrepreneurial activity for society not only by state structures, but also by citizens. Among the main obstacles to the development of social enterprises are: fear of risk and uncertainty; lack of qualified personnel and experience in obtaining funds with the help of modern financial instruments; lack of awareness about the role of social entrepreneurship in society [4]. Obstacles of a material nature are the lack of soft loans, the necessary equipment, premises, the ability to hire highly qualified personnel and pay them decently. The formal barrier to the formation of social entrepreneurship is also the lack of the necessary legal framework.

Given this, it is advisable not only in scientific publications, but also in the media, through online communities and blogs to disseminate data and give examples of its positive effects:

- assistance in overcoming social isolation, in particular, employment of people with disabilities, the unemployed, representatives of other risk groups;

identification and organization of new ways to reform public social services;

Involvement of large segments of the population in social initiatives on a volunteer basis, uniting communities around solving social problems;

the emergence of new types of social services that remain out of sight of ordinary business due to low profitability, unpopularity, lack of proper training;

more efficient use of available resources of settlements and even regions in solving social problems;

reducing the burden on local budgets in solving social problems, which is especially important in the context of chronic budget deficits, periods of financial and economic crises.

Currently, despite the rather modest scale of distribution, social entrepreneurship in Ukraine is becoming a fashion trend [5, p. 81]. It creates informational, political and other important reasons and attracts the attention of many representatives of public organizations, initiative groups and just active people. The use of entrepreneurial approaches to solving social problems allows less hope and pressure on the state budget, the profitable part of which is catastrophically lacking in spending [6, p. 467]. It provides more or less sustainable development for vulnerable groups in society, which raises social entrepreneurship to a new level of development in the country. Legislative uncertainty and a certain liberalism in the regulation of social entrepreneurship allows to choose the most optimal organizational and legal form for a social enterprise, both in terms of business model and in terms of taxation. This means that the embryo of a social enterprise can evolve from a commercial project of a public organization to a public joint stock company. It should be emphasized that it is not important whether there is such a form as a social enterprise, but it is important for what purpose this or that business is created [7].

Availability of resources that are not involved in traditional business, among them the largest, of course, human resources, which include the following categories: people with disabilities; refugees (internally displaced persons); National minorities; elderly; young; people with addictions; people released from prisons; HIV-positive people; mothers with many children [8, 9]. Often, such people have excellent skills (talents), but their «features» deter traditional entrepreneurs from hiring them because of a certain (and often fair) bias and stereotypes. In addition to human capital and resources, you can use numerous buildings and structures, which are located throughout the country in large numbers due to deindustrialization, the collapse of many activities, social infrastructure. They are not actually used because they are in a terrible state and are being destroyed further, but they are owned by the community. They can be effectively transformed into office centers with employment of vulnerable groups and income aimed at solving local problems; directly give to the development of social business.

Conclusions. In recent times, businesses have always been interested in outsourcing. This means refusing and trying not to keep a number of support services and units on its balance sheet, as this requires constant costs. Therefore, there is an increasing trend of ordering services such as cleaning, transportation, courier delivery, office equipment and networking, advertising and public relations, event organization, educational services, accounting, production of various parts and more. This allows small businesses to grow. Another concept of business development is social responsibility. It also includes helping the local community solve urgent problems. Increasingly, companies are looking for opportunities to replace grants with startups, because, in this case, they provide outsourcing and at the same time solve a social problem, which, in turn, will not require further grants if big business enters into an agreement to purchase social enterprise services. The number of examples of such cooperation in Ukraine is increasing, which confirms the thesis of the significant potential and growing role of social entrepreneurship in social development.

Список використаних джерел

1. Гусак Н., Кузнецова В, Стеценко Т. Соціальне підприємництво в Україні: звіт за результатами дослідження. Київ: Pact, Inc., Western NIS Enterprise Fund, Школа соціальної роботи НаУКМА, ГО «Молодіжний центр з трансформації соціальної сфери «СОЦІУМ ХХІ», 2016. 45 с.

2. Босак І.П. Соціальне підприємництво: основні ознаки та особливості розвитку. Наукові записки [Української академії друкарства]. 2017. Вип. 1 (54). С. 99-104.

3. Романюк І.А. Розвиток підприємництва та альтернативних видів діяльності сільського населення. Економіка. Менеджмент. Бізнес. 2014. № 1 (9). С. 117-121.

4. Кінаш І.П. Соціальна домінанта сталого розвитку: теоретичний аспект. URL: http://www.pu.if.ua.

5. Ігнатенко М.М. Теоретичні засади та практичні напрями формування корпоративної соціальної відповідальності аграрних і харчових підприємств Економіка АПК. 2015. № 1. С. 78-83.

6. Соціальне підприємництво: від ідеї до суспільних змін: посіб. / А.А. Свинчук, А.О. Корнецький, М.А. Гончарова, В.Я. Назарук, Н.Є. Гусак, А.А. Туманова. Київ: ТОВ «ПІДПРИЄМСТВО «ВІ ЕН ЕЙ», 2017. 188 с

7. Ігнатенко М.М., Мармуль Л.О. Облік, оцінка й діагностика фінансово-економічних результатів діяльності у стратегічному менеджменті підприємств і організацій. Східна Європа: економіка, бізнес та управління. 2017. Вип. 6(11). URL: http://www.easterneurope-ebm.in.ua/11-2017-ukr.

8. Ihnatenko M., Antoshkin V., Lokutova O., Postol A., Romaniuk I. Ways to develop brands and pr management of tourism enterprises with a focus on national markets. International Journal of Management (IJM). 11(5), 2020, pp. 778-787.

9. Marmul L.O., Ignatenko M.M., Ushakov D.S., Kuchyn S.P. Transformation of approaches to determine influence factors in the economic development models. International Journal of Economics & Business Administration, vol. VII, iss. 2. 2019. pp. 290-301.

References

1. Husak, N., Kuznyetsova, V. & Stetsenko, T. (2016). Sotsial'ne pidpryyemnytstvo v Ukrayini: zvit za rezul'tatamy doslidzhennya [Social entrepreneurship in Ukraine: a report on the results of the study]. Kyiv: Pact, Inc., Western NIS Enterprise Fund, Shkola sotsial'noyi roboty NaUKMA, HO «Molodizhnyy tsentr z transformatsiyi sotsial'noyi sfery «SOTSIUM KHKHI».

2. Bosak, I.P. (2017). Sotsial'ne pidpryyemnytstvo: osnovni oznaky ta osoblyvosti rozvytku [Social entrepreneurship: the main features and peculiarities of development]. Naukovi zapysky [Ukrayins'koyi akademiyi drukarstva], 1 (54), 99-104.

3. Romaniuk, I.A. (2014). Rozvytok pidpryyemnytstva ta al'ternatyvnykh vydiv diyal'nosti sil's'koho naselennya [Development of entrepreneurship and alternative activities of the rural population]. Ekonomika. Menedzhment. Biznes, 1 (9), 117-121.

4. Kinash, I.P. Sotsial'na dominanta staloho rozvytku: teoretychnyy aspekt. URL: http://www.pu.if.ua.

5. Ihnatenko, M.M. (2015). Teoretychni zasady ta praktychni napryamy formuvannya korporatyvnoyi sotsial'noyi vidpovidal'nosti ahrarnykh i kharchovykh pidpryyemstv [Theoretical principles and practical directions of formation of corporate social responsibility of agrarian and food enterprises]. Ekonomika APK, 1, 78-83.

6. Svynchuk, A.A., Kornets'kyy, A.O., Honcharova, M.A., Nazaruk, V.Ya.,. Husak, N.Ye. & Tumanova, A.A. (2017). Sotsial'ne pidpryyemnytstvo: vid ideyi do suspil'nykh zmin [Social entrepreneurship: from idea to social change]. Kyiv: TOV «PIDPRYYEMSTVO «VIEN EY».

7. Ihnatenko, M.M. & Marmul', L.O. (2017). Oblik, otsinka y diahnostyka finansovo-ekonomichnykh rezul'tativ diyal'nosti u stratehichnomu menedzhmenti pidpryyemstv i orhanizatsiy [Accounting, evaluation and diagnosis of financial and economic results of activities in the strategic management of enterprises and organizations]. Skhidna Yevropa: ekonomika, biznes ta upravlinnya, 6(11). URL: http://www.easterneurope-ebm.in.ua/11-2017-ukr.

8. Ihnatenko, M., Antoshkin, V., Lokutova, O., Postol A. & Romaniuk, I. (2020). Ways to develop brands and pr management of tourism enterprises with a focus on national markets. International Journal of Management (IJM). 11(5), 778-787.

9. Marmul, L.O., Ignatenko, M.M., Ushakov, D.S. & Kuchyn, S.P. (2019). Transformation of approaches to determine influence factors in the economic development models. International Journal of Economics & Business Administration, VII, 2, 290-301.

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