Social Economy and Social Enterprises: Talking about a Growing Trend in Ukraine and the World
Social enterprises and social economy organizations are gaining popularity worldwide. Initiatives like “Buy Social,” aimed at increasing the competitiveness of social enterprises in Europe, demonstrate a global shift toward social responsibility, with similar projects also gaining momentum in Ukraine.
Ukraine, facing the challenges of a full-scale invasion and numerous social issues, is increasingly turning to social enterprises as drivers of community recovery and sustainable development. Supporting such enterprises not only helps address social problems but also stimulates economic growth, especially in times of war, when rebuilding the economy is a critical issue.
According to the 2022 Global Web Index report, 60% of consumers prefer brands that demonstrate social responsibility and sustainable development. Younger generations particularly value ethical enterprises. This global trend is also gaining traction in Ukraine, as evidenced by the growing corporate social responsibility movement, with large companies integrating social impact into their business models. In Ukraine, social enterprises are also beginning to align with these global trends. One example is the “Made in Ukraine” initiative, which supports local products created by small and medium-sized enterprises, including social enterprises that employ vulnerable groups such as internally displaced persons (IDPs). This initiative not only supports the local economy but also aligns with global trends in sustainable consumption. The Platform for Social Change plays a key role in developing social entrepreneurship in Ukraine, providing support to local entrepreneurs, helping them scale their businesses, and building partnerships with international organizations. This promotes the financial sustainability of civil society organizations and maximizes their social impact.
As Ukraine continues to recover and grow, the role of social enterprises will only increase. In the context of war, social enterprises not only help solve local social problems but also play a crucial role in supporting the economy, especially in regions affected by the conflict. The development of such enterprises creates jobs, facilitates the integration of displaced persons, and helps keep local communities active participants in economic processes. Given that more and more consumers prefer socially and environmentally responsible brands, Ukraine’s social economy has significant potential for growth. Social enterprises act as a platform for combining economic growth with improving social conditions, offering innovative approaches to addressing current challenges.
The growing focus on ESG (environmental, social, and governance) criteria in global businesses underscores the increasing connection between profitability and social impact. This creates immense potential for Ukrainian social enterprises to integrate into global markets and collaborate with companies seeking to strengthen their corporate social responsibility.
Thus, social enterprises are not a temporary trend but an important strategic tool for sustainable development. By adopting the principles of social responsibility both globally and locally, and implementing social entrepreneurship practices, a powerful action plan can be created for building a resilient, inclusive, and self-sufficient economy.
