The role of social entrepreneurship for economic development

Methods. Social entrepreneurship, which combines innovative business models with a social mission, is today one of the most dynamic sectors of the global economy. Its uniqueness lies in its ability to generate income to achieve sustainable social goals, in particular in solving such pressing problems as unemployment and poverty. In Georgia, where these issues remain relevant, the development of social entrepreneurship can become a key tool for achieving inclusive economic growth. During the research, such methods as Case Studies were used. This method allowed us to analyze social enterprises in Georgia, to analyze their business models, social missions, impact on employment and other aspects of social entrepreneurship. The method of system analysis allowed us to analyze social entrepreneurship not only as individual organizations, but as part of a broader system that includes: state policy, economic factors, social factors. Results. The study showed that the majority of social enterprises operating in Georgia focus their activities on supporting vulnerable groups of the population, in particular people with disabilities. They create jobs, provide vocational training and promote social integration. These enterprises are an integral part of the social economy and their activities directly affect key macroeconomic indicators. Introduction of a systemic state policy, which will include: Creation of a favorable legal framework: development and adoption of legislation that clearly defines and regulates the activities of social enterprises; Financial support: implementation of special grant programs, preferential loans and tax breaks; Development of institutional capacity: creation of incubators and accelerators for social startups; will significantly accelerate the development of this area in Georgia. The implementation of these measures will lead to a decrease in unemployment, an increase in economic activity of the population and, as a result, will contribute to the sustainable economic development of the country. Thus, social entrepreneurship can become a powerful catalyst for achieving social justice and prosperity. Novelty. This article, using case study and system analysis methods, explores the role of social enterprises in overcoming unemployment and poverty. The main novelty of the study is that it not only describes the problem, but also offers specific tools and policy measures adapted to Georgian realities. Practical value. We analyze the experience of countries that have achieved significant success in the development of social entrepreneurship in order to identify the most effective models and legislative approaches. This allows us to develop practical recommendations for Georgia.

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Publication Details

Journal
Economic Bulletin of Dnipro University of Technology
Published
2025-09-30
DOI
https://doi.org/10.33271/ebdut/91.161
Primary Topic
Entrepreneurship Studies and Influences
Type
article
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article

The role of social entrepreneurship for economic development

L. G Sreseli
Economic Bulletin of Dnipro University of Technology
Entrepreneurship Studies and Influences
article

The role of social entrepreneurship for economic development

L. G Sreseli
article en

Abstract

Methods. Social entrepreneurship, which combines innovative business models with a social mission, is today one of the most dynamic sectors of the global economy. Its uniqueness lies in its ability to generate income to achieve sustainable social goals, in particular in solving such pressing problems as unemployment and poverty. In Georgia, where these issues remain relevant, the development of social entrepreneurship can become a key tool for achieving inclusive economic growth. During the research, such methods as Case Studies were used. This method allowed us to analyze social enterprises in Georgia, to analyze their business models, social missions, impact on employment and other aspects of social entrepreneurship. The method of system analysis allowed us to analyze social entrepreneurship not only as individual organizations, but as part of a broader system that includes: state policy, economic factors, social factors. Results. The study showed that the majority of social enterprises operating in Georgia focus their activities on supporting vulnerable groups of the population, in particular people with disabilities. They create jobs, provide vocational training and promote social integration. These enterprises are an integral part of the social economy and their activities directly affect key macroeconomic indicators. Introduction of a systemic state policy, which will include: Creation of a favorable legal framework: development and adoption of legislation that clearly defines and regulates the activities of social enterprises; Financial support: implementation of special grant programs, preferential loans and tax breaks; Development of institutional capacity: creation of incubators and accelerators for social startups; will significantly accelerate the development of this area in Georgia. The implementation of these measures will lead to a decrease in unemployment, an increase in economic activity of the population and, as a result, will contribute to the sustainable economic development of the country. Thus, social entrepreneurship can become a powerful catalyst for achieving social justice and prosperity. Novelty. This article, using case study and system analysis methods, explores the role of social enterprises in overcoming unemployment and poverty. The main novelty of the study is that it not only describes the problem, but also offers specific tools and policy measures adapted to Georgian realities. Practical value. We analyze the experience of countries that have achieved significant success in the development of social entrepreneurship in order to identify the most effective models and legislative approaches. This allows us to develop practical recommendations for Georgia.

Economic Bulletin of Dnipro University of TechnologyVol. 91
Georgia State University (US)
Openalex Percentile: Top 62%
Entrepreneurship Studies and Influences
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