FOREIGN EXPERIENCE OF NORMATIVE-LEGAL REGULATION OF SOCIAL ENTREPRENEURSHIP DEVELOPMENT

Keywords: state regulation, non-profitability, social utility, social entrepreneurship, social cooperatives.

Abstract

Social entrepreneurship as a socio-economic and organizational phenomenon in recent years is increasingly attracting the attention of scientists, the public, businesses and government. Social entrepreneurship is often understood as a type of economic activity aimed at solving the problems of certain groups of people who due to failures (inability) of the market and the state do not have access to essential goods.

Despite the growing number of scientific studies on social entrepreneurship, it is necessary to update the role of the state in its development, to study the possibilities of adapting foreign experience of legal regulation to modern Ukrainian realities.

The purpose of the article is to study the foreign experience of legal regulation of social entrepreneurship, theoretical justification of the prospects of foreign experience adaptation to Ukrainian realities.

Based on the results of a cartographic study on the state regulation of social enterprise in European countries by the European Commission, three key dimensions of social entrepreneurship have been updated:

entrepreneurial dimension: participation in continuous economic activity;

social dimension: the presence of a clear social purpose of activities that benefit society;

managerial dimension: independence from the state, the availability of governance mechanisms that ensure the priority of the social goal and take into account the interests of various stakeholders.

 

It is defined that social enterprises acquire different organizational and legal forms and statuses:

adapted modern legal forms, such as: associations, foundations, cooperatives, companies;

legal forms intended exclusively for social enterprises;

legal status of social enterprises, which can be obtained by companies with different organizational and legal forms if they meet a set of criteria.

Sixteen European countries have certain legislation acts that define social enterprises and regulate their activities. However, the legislation of only four of them (Greece, Italy, France and Poland) has a legal form created specifically for social entrepreneurship.

Peculiarities of normative-legal regulation of social entrepreneurship in Belgium, Denmark, Great Britain, Poland, Slovakia, Romania and Lithuania are considered.

It is determined that the formation and development of social entrepreneurship in Ukraine is one of the conditions for the transition to a new innovative model of economic growth. The study of differences between the regulation of social entrepreneurship in different countries revealed that the most important role for the development of social entrepreneurship belongs to the legal regulation. And the lack of legal recognition of social entrepreneurship in the country complicates its creation, as well as support by both government officials and professionals, and tax incentives.

Based on the practice of legal regulation of social entrepreneurship in developed countries, from the standpoint of adaptation to Ukrainian realities, the experience of each of them can be useful. Ukraine can learn from the experience of creating regulatory framework for the development of social entrepreneurship. The conclusion about the prospects of the Italian experience usage was made, because there the basis for the functioning of social entrepreneurship has already been formed, and there is a rapid growth in the number of social entrepreneurs. The experience of Poland and Romania is also useful, civil society organizations there play an important role in the development and promotion of social entrepreneurship.

It is determined that the most important stage for the development of social entrepreneurship in Ukraine today is to make citizens and public authorities aware of the need for its functioning in order to solve existing socio-economic problems in the country.

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References

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Published
2020-10-30
How to Cite
Bykovets , K. (2020). FOREIGN EXPERIENCE OF NORMATIVE-LEGAL REGULATION OF SOCIAL ENTREPRENEURSHIP DEVELOPMENT. Theory and Practice of Public Administration, 3(70), 202-211. https://doi.org/10.34213/tp.20.03.23
Section
Foreign Policy and National Security