SOCIAL IMPACT INVESTMENT: ITS ROLE AND PLACE IN THE INVESTMENT ECOSYSTEM OF A NATIONAL ECONOMY

B a c k g r o u n d . Over the last decade, Social Impact Investment (SII) has significantly evolved as a response to growing socio-economic challenges and increasing interest from both individual and institutional investors in achieving measurable social outcomes. Governments worldwide have recognized the limitations of traditional subsidy-based approaches and are turning toward innovative, market-based mechanisms that mobilize private capital to address pressing social needs. M e t h o d s . This study employs a mixed-methods approach that includes a systematic literature review, analysis of relevant policy and evaluation reports, and examination of statistical data. The geographic scope is primarily limited to the European Union. To ensure analytical rigor, the study also applies methods of content analysis, synthesis of scientific literature, and market data evaluation. R e s u l t s . The article offers a comprehensive definition of SII, identifying its fundamental components. The authors argue that for SII to achieve its full potential, an ecosystem-based approach is essential. The paper conceptualizes the core elements of the SII ecosystem, including social needs, demand- and supply-side actors, and intermediaries operating within a supportive environment. It further generalizes the principles governing their interactions, suggesting a paradigm shift in the development and functioning of national investment ecosystems. This shift involves the emergence of new factors in investment environments, the evolution of interaction models, and the formulation of new regulatory principles and policy instruments. The authors examine the role of SII within national investment frameworks, introducing an original model titled "The House of SII – National Investment Ecosystem Interaction Framework". This model serves as a comprehensive tool for organizing various types of investments and stakeholder relations, as well as for assessing their efficiency, effectiveness, and socio-economic impact–both nationally and globally. The article also evaluates the prospective contributions of SII to achieving of the Sustainable Development Goals (SDGs) and the expansion of SII markets. C o n c l u s i o n s . The findings indicate that while SII markets vary across countries, there is a universal need for stronger government engagement to support the development of robust and sustainable SII frameworks. The study emphasizes that SII, through its integrative and impact-driven nature, has the potential to become a cornerstone of contemporary social and economic policy, particularly in facilitating systemic change through investment.