SOCIAL ENTREPRENEURSHIP AS A TOOL FOR IMPROVING THE ECONOMIC SECURITY OF THE STATE

Abstract

The article examines social entrepreneurship as an important tool for strengthening the economic security of the state under conditions of modern transformation and wartime challenges. It is argued that traditional mechanisms of economic policy (fiscal, monetary, investment) are not always effective in responding to systemic crises caused by war, destruction of infrastructure, growing social inequality, and the shadow economy. This necessitates the search for new instruments that combine economic efficiency with socially significant outcomes. Social entrepreneurship, through its dual mission – economic and social – has the potential to generate a multiplier effect for both society and the state. The study provides a theoretical and methodological analysis of the concept of economic security, proving that its key indicators include resilience of economic systems, competitiveness, the ability to counter external and internal threats, and preservation of social stability. It is shown that social enterprises directly influence these indicators by creating jobs, legalizing economic activity, developing human capital, and reducing social risks. Special attention is paid to international practices, particularly the experience of the EU, the United Kingdom, Poland, and Canada, where social entrepreneurship is integrated into national strategies of economic security and sustainable development. The spread of legal forms (such as Community Interest Companies in the UK and social cooperatives in Poland), the use of socially responsible public procurement, and the introduction of specialized financial instruments (grants, concessional loans, impact investments) significantly enhance the resilience of national economies. The current state of social entrepreneurship in Ukraine is analyzed, highlighting major barriers: the absence of a special law on social entrepreneurship, limited access to finance, low financial literacy of entrepreneurs, weak institutional support, and lack of unified social impact measurement practices. At the same time, Ukrainian social enterprises already play an important role in recovery processes: they provide employment for internally displaced persons, people with disabilities, and veterans, create innovative products and services, and contribute to community development. The article proposes a set of measures to integrate social entrepreneurship into Ukraine’s economic security policy. These include the legal recognition of social enterprises, introduction of socially responsible public procurement, development of financial and investment instruments (preferential loans, guarantees, social impact bonds), creation of a national framework for measuring social impact in line with international standards (IRIS+, SVI, CSRD), institutional support through clusters and hubs, a unified state register of social enterprises, and targeted educational programs. It is concluded that social entrepreneurship can become a key driver of post-war recovery and a long-term instrument of Ukraine’s economic security. Its integration into public policy will contribute to short-term stabilization and lay the foundation for sustainable development, where economic efficiency is combined with social justice and inclusiveness.