Risks of public-private partnership in the development of social entrepreneurship

Abstract

Building a socially oriented economy, ensuring high and stable rates of development of the national economy is impossible without the implementation of a partnership between the public sector and representatives of the private sector to solve socially significant issues of society: reducing social tension, increasing the general welfare of the population; solving cultural and environmental problems. The most popular form of interaction between the government and business is a public-private partnership. Implementing public-private partnerships in social entrepreneurship is associated with risks and the development of mechanisms for managing them in implementing partnership relations of public-legal entities. The publication aims to study the risks of public-private partnerships in developing social entrepreneurship and create a mechanism for their minimization. The article examines the nature of risks arising while implementing public-private partnerships in developing social entrepreneurship. The categorical apparatus of the concepts of "public-private partnership", "risk", "social entrepreneurship", and "risk management" is defined. It has been proven that public-private partnership allows the efforts of the state and private business to solve significant socio-economic problems and implement the principles of sustainable development of society — researched analysis of approaches to the classification of risks in PPPs. An assessment of the most common risks for all parties participating in the PPP was carried out. Typical benefits of public-private partnerships in the development of social entrepreneurship are determined. The directions for improving the risk management mechanism of public-private partnerships in developing social entrepreneurship have been developed. For the development of social entrepreneurship, implementing public-private partnership projects depends on minimizing all risks through analyzing social and economic feasibility, correctness and structure, and the coordinated work of all interested parties. Keywords: public-private partnership, risk, social entrepreneurship, competitiveness, risk management mechanism, state, private sector.