THEORETICAL AND METHODOLOGICAL BASIS OF THE STUDY OF SOCIAL ENTREPRENEURSHIP

Abstract

The article examines the essence and historical development of social entrepreneurship to solve and mitigate social problems, proposes its functions, and outlines the differences between social entrepreneurship and socially responsible business. It is proposed to distinguish the following functions of social entrepreneurship: social function, economic function, innovative function, mobilizing function, and motivational function. The five components of social responsibility of business are summarized: a responsible producer, a responsible employer, a responsible participant in social relations, a responsible participant in economic and political relations with the state, and a responsible business partner, and the essence of each of them is revealed. Several advantages arising from the implementation of social responsibility are emphasized, among them: increasing the reputation of the organization as socially active, increasing the level of public trust in the activities of the organization and its products, increasing the professionalism of the company, and preserving the personnel potential; increase in the level of loyalty of the company's employees; creation of a safe environment for the operation and development of the company; compliance with global standards of business activity; formation of partnership and trusting relations with the authorities, public sector and mass media.

The difference between social entrepreneurship and the social responsibility of business is substantiated. It is noted that the social responsibility of business is expressed in the implementation of the main activity of the enterprise, taking into account social and environmental aspects. In contrast, social entrepreneurship's social goal is the basis of its existence. The main goal of socially responsible enterprises is to make a profit, and for social enterprises, it is to solve social problems with the help of the obtained profit. In addition, the percentage of profit spent on social goals within the social responsibility framework can vary within individual decisions or commitments. In contrast, this percentage is clearly defined and fixed in social enterprises.