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2 (30) 2017

Demography and social economy, 2017, 2(30):152-165
doi: https://doi.org/10.15407/dse2017.02.152
334.72
JEL LASSIFICATION: J21, M38

H.Yu. Mishchuk

Dr. Sc. (Economics), Docent, Prof.
National University of Water and Environmental Engineering
33028, Soborna str., 11, Rivne, Ukraine
E-mail: mischuk_galina@ukr.net

R.R. Pylypchuk
Postgraduate Student
National University of Water and Environmental Engineering
33028, Soborna str., 11, Rivne, Ukraine
E-mail: alfaprodin@gmail.com

SOCIAL ENTREPRENEURSHIP: CRITERIONS OF IDENTIFICATION AND PROBLEMS OF DEVELOPMENT
Section: SOCIAL-ECONOMIC DEVELOPMENT AND LABOR
Language: Ukrainian
Abstract: The article catalogues approaches to the legal definition of social enterprise and requirements for obtaining the status of social enterprise applied in the EU and used within the European Commission methodology for mapping the spectrum of social enterprises and their ecosystems in Europe. The authors grouped the countries in terms of social enterprise legitimization and analysis of the number of social enterprises per 10,000 people, as well as in the group of small and medium enterprises. In this context the study revealed that social entrepreneurship is developed to the greatest extent in the EU-member states where the criteria for its identification are either clearly defined in national legislation (e.g. Italy, Finland, Luxembourg, Slovenia) or are enshrined in social practice and there is appropriate legal support of national kinds of social enterprises (e.g. experience of the UK, Spain). Furthermore, the paper discovered that countries that have recently joined the EU advocate much clearer criteria for identifying the boundaries of social enterprises which evidences their support within the framework of public policies based on the specification of the distinctive status compared to traditional businesses. These countries include the following: Bulgaria, Estonia, Lithuania, Slovakia, Croatia, and Czech Republic. The research determined that the minimum limits of the numeric criteria for identifying social enterprises in Europe are the following: employment at least 30 per cent of the enterprise staff comprises vulnerable people, and at least 50% of profit of the enterprise is reinvested into socially beneficial aims. The paper argues that it is worth to apply this experience in Ukraine in order to develop appropriate programmes focused on the support of social enterprise development.
Key words: competitiveness, factors, employment, reinvestment, social entrepreneurship.
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