What is the Future of the Social Economy in Ukraine?

The social economy is gaining momentum globally due to its ability to foster a more inclusive, sustainable, and innovative economic system. By addressing social challenges while creating economic value, the social economy offers innovative solutions to societal issues. It simultaneously contributes to local development, job creation, the integration of vulnerable groups into the workforce, and the transition to more sustainable business models.

In April, at the 66th plenary session of the UN General Assembly, the resolution “Promoting a Social and Solidarity Economy for Sustainable Development” was adopted. This resolution officially defined the social and solidarity economy, recognizing its vital role in achieving the Sustainable Development Goals. It also encourages member states to develop national, local, and regional strategies, policies, and programs to support the social economy, marking a significant increase in global interest and a clear call to action.

In Ukraine, the social economy is still in its nascent stages, particularly as the country grapples with the challenges brought on by the full-scale invasion. Despite these difficulties, Ukrainian social enterprises continue to operate and even grow in this challenging environment. The social economy is beginning to be recognized as a potential driver of economic development and recovery in Ukraine.

Looking ahead, the social economy holds promise for Ukraine as the country embarks on a path of economic recovery and development. How will the social economy shape Ukraine’s future?

• The social economy has proven resilient in times of crisis, such as during the COVID-19 pandemic, and it could play a crucial role in Ukraine’s post-war recovery. Social enterprises have the potential to offer a wide range of services, create jobs, and support vulnerable populations, thereby contributing to economic stability and growth.
• Establishing a strong policy and regulatory framework at both national and international levels is essential to support social entrepreneurship. Such frameworks will help integrate the social economy into Ukraine’s broader economic strategy, ensuring its long-term impact.
• Social innovators and entrepreneurs in Ukraine are already playing a vital role in solving social problems and strengthening community resilience. With the right support, they can scale their efforts and contribute to sustainable and inclusive economic growth.
• International partnerships and cooperation will be crucial in supporting the social economy in Ukraine. Initiatives like the Kyiv Investment Forum and organizations such as Catalyst 2030 are mobilizing resources and expertise to assist Ukrainian social entrepreneurs.

The future of the social economy in Ukraine has the potential to be transformative. By fostering an inclusive environment, promoting social innovation, and contributing to sustainable development, the social economy can become a cornerstone of Ukraine’s economic and social recovery, especially with ongoing support from key market actors, investors, and international partners.