LOCAL SELF-GOVERNMENT AS A CATALYST FOR THE DEVELOPMENT OF SOCIAL ENTREPRENEURSHIP

Abstract

Objective and relevance. The purpose of this article is to study the role of local self-government in the development of social entrepreneurship in Ukraine, in particular in the context of decentralisation. In many countries, including Ukraine, local governments play an important role in stimulating the development of social entrepreneurship. In the context of decentralisation in Ukraine, local communities have been empowered to manage their resources, which opens up new opportunities to support businesses focused on the public good. This article explores how local self-government can become a catalyst for the development of social entrepreneurship, looking at both the opportunities and challenges of this process. As local communities gain more autonomy in managing their resources and addressing local issues, social entrepreneurship becomes a key tool for addressing social, economic and environmental challenges. This topic is highly relevant given the ongoing decentralisation reforms in Ukraine, the social and economic impact of the war, and the potential of social enterprises to contribute to sustainable community development. This study uses a combination of qualitative and quantitative methods. The authors reviewed the literature on social entrepreneurship theory and practice, as well as examples of successful social enterprises in Ukraine and abroad. Interviews with local authorities and social entrepreneurs were used to collect primary data. In addition, a comparative analysis of the legal and regulatory framework for social enterprises at the local level was conducted. This study shows that local governments can play a significant role in promoting social entrepreneurship through financial support, simplifying administrative procedures, and facilitating partnerships between the private sector and civil society organizations. However, challenges remain, including limited financial resources, bureaucratic barriers, and a lack of awareness of the potential of social entrepreneurship among both local officials and the public. This article provides practical recommendations for local authorities to strengthen their support for social entrepreneurship, including the development of targeted grant programs, educational initiatives and cooperation projects with the private sector. By implementing these measures, local authorities can contribute to solving pressing social problems while stimulating economic growth and innovation at the community level.