Supporting the Development of Social Enterprises is the Best Way to Build a Sustainable Ukraine
As Ukraine faces both global and local challenges, the key to building a sustainable future lies in strengthening local communities. Building a sustainable future for Ukraine requires a deep, systemic change that focuses on economic resilience, social equity, and environmental care. One of the most effective ways to do this is through the development of social entrepreneurship. These businesses don’t just address urgent social issues, they create long-term solutions that can bring several benefits to communities. By supporting the growth of social enterprises, Ukraine can foster self-sufficiency, create jobs, and drive social innovations, all of which are essential to build a resilient and sustainable country.
Why do social enterprises matter for Ukraine’s sustainability?
Social enterprises are businesses that prioritize resolving social issues while also ensuring financial sustainability. By blending these priorities, they not only tackle pressing societal challenges but also generate long-term value for communities. In Ukraine, where challenges like unemployment, a high number of IDPs, and destroyed regions and infrastructure are deeply felt, social enterprises can offer a solution.
The impact of social enterprises goes beyond just providing jobs. They foster inclusive economic growth by addressing local needs and empowering communities to solve their problems. Whether it’s through job creation, providing affordable services, or driving environmental initiatives, social enterprises are essential pillars for a resilient and sustainable Ukraine.
In fact, studies show that social enterprises play a critical role in improving living conditions and creating sustainable economic opportunities. According to the European Parliament, there are over 2 million social enterprises in the EU that represent 10% of all businesses of the Union. In Ukraine, where many communities face high unemployment rates and economic instability, social enterprises may offer a pathway for long-term prosperity.
Local change for a global impact
Social enterprises work by addressing local needs with solutions developed by the community itself. This model is particularly important in Ukraine, where many rural areas still face significant barriers to development, including limited access to services like healthcare, education, and employment. Social enterprises can give communities the power to tackle these challenges in ways that are relevant to their specific context, enabling people to become self-reliant, reduce their dependence on external aid, and shape their own future.
Furthermore, social enterprises don’t just create local solutions — they contribute to global sustainability efforts. For instance, in regions like the Carpathian Mountains, where environmental issues directly affect local communities, social enterprises focused on sustainable tourism or eco-friendly agriculture not only help preserve natural resources but also provide livelihoods. This localized approach creates global change, as it aligns with broader sustainability goals, such as protecting biodiversity and mitigating climate change.
In some rural Ukrainian villages, social enterprises focused on agriculture are helping farmers increase productivity while adopting environmentally friendly practices. These enterprises provide jobs and resources that stay within the community, creating a sustainable cycle of local development. One example of a successful rural initiative is the Yahidnyi Rai Agricultural Service Cooperative, launched by the Dunayevets City Council to support local families in cultivating profitable crops. This project not only ensures stable household incomes and fosters entrepreneurship but also helps curb rural migration.
Established in 2017, the cooperative now brings together 43 families from 14 villages within the community. Its members collectively cultivate over 10 hectares of land, with 4 hectares dedicated to berry production, including raspberries, blackberries, strawberries, black currants, and elderberries. Each year, they harvest more than 20 tons of berries, with raspberries as the primary crop. As membership continues to grow, so does the cooperative’s production capacity, further strengthening the local agricultural economy.
Social entrepreneurship role in the job creation process
Job creation is one of the most important contributions of social enterprises, especially in areas where unemployment is a persistent issue. In Ukraine, rural unemployment remains at the level of almost 10%, contributing to regional disparities and social inequality. Social enterprises help address this by creating jobs that are not just about filling a vacancy, but about building long-term economic stability.
What sets social enterprises apart is that they don’t just focus on economic growth, they also prioritize the people who need jobs the most. This means that social enterprises often target vulnerable populations, including youth, women, people with disabilities, and internally displaced persons (IDPs), creating opportunities for groups that might otherwise struggle to find work. According to recent data, working-age IDPs in Ukraine have recorded a higher rate of unemployment (15%, compared to the national average of 11%), with a higher proportion of unemployed job seekers (61%) compared to returning migrants and non-displaced individuals. By focusing on these vulnerable groups, social enterprises help reduce unemployment and create more inclusive communities across Ukraine.
Furthermore, social enterprises strengthen local economies by diversifying industries. Many of these businesses focus on sectors like manufacturing, education, local agriculture, areas that contribute to an economy while also providing stable income. The multiplier effect of social enterprises means that every dollar invested can lead to more jobs, improved services, and a more resilient local economy overall.
Driving innovations and social impact
Social enterprises are often at the forefront of innovation, particularly when it comes to solving the complex social and environmental issues that traditional businesses might overlook. In Ukraine, social enterprises are pioneering solutions that not only address immediate problems but also create lasting impact. Whether it’s providing clean energy to remote villages or creating digital platforms to improve healthcare access, social enterprises are proving that business can be a force for good.
These businesses also tend to have a strong focus on sustainability, often tackling environmental challenges directly. For example, social enterprises in Ukraine focused on renewable energy are helping to reduce energy poverty in rural areas. These projects are not only providing affordable, clean energy but also helping communities become more energy independent, which aligns with Ukraine’s long-term sustainability goals.
What’s especially exciting is the scalability of these innovations. Many social enterprises start small but have models that can be replicated in other regions or even across borders. This ability to scale allows the positive impact of social enterprises to extend far beyond their initial location, offering potential solutions for communities across Ukraine and beyond.
The development of social enterprises is crucial to building a sustainable, resilient Ukraine. These businesses are not just creating jobs or solving local problems, they are empowering communities, strengthening local economies, and driving long-term social change. By supporting social enterprises, Ukraine can build a future where local people take control of their own development, creating opportunities for future generations and contributing to a more sustainable country.
At the Platform for Social Change, we believe in the power of social enterprises to transform communities. By providing education, investment, and mentorship, we’re helping to build a future where Ukraine’s local businesses can thrive, grow, and make a lasting impact.
