PROSPECTS AND LIMITATIONS OF SOCIAL ENTREPRENEURSHIP DEVELOPMENT IN PUBLIC GOODS PRODUCTION


Malykh O.E.

Currently, society and the economy are experiencing increasing problems affecting the sustainability of its growth and development, the environment, poverty and social security. The deformation of the social state model has been very noticeable for several decades. At the same time, a smaller part of the world`s population has no desire to give up the achieved level of well-being, and a larger part has no opportunity to improve it. In addition, the world economy shows instability and lack of resources for development. The state generally reduces its functions in the social sphere and makes the transition from a model of social protection to a model of social sufficiency, which is an element of social entrepreneurship. The reduction in the social rights and guarantees forces us and the world scientific community to look for a "replacement" of the social protection system, since the absence of guarantees does not mean the absence of social problems. In this context, social entrepreneurship, as a niche type of enterprise, has a large underutilized potential and can help society develop a "shared value" economy. The year 2020 in the context of the pandemic showed a significant vulnerability of small businesses. In conditions of uncertainty, its opportunities, for example, in terms of creating jobs and charitable activities, are reduced, and the public`s demand for social protection and health increases. The emergence and development of social entrepreneur-ship is presented as another mechanism, in addition to the activities of NPO (non-profit organisation) and charities, solving social problems on a permanent financial basis, which does not depend on the probability of receiving a grant or the benefactor possibilities. Recommendations for the development of social entrepreneurship affect the methodological foundations and methodological tasks, and are also aimed at creating a certain institutional framework that allows to coordinate the interests and actions of all stakeholders. Keywords: social entrepreneurship, social firm, positive external effects, public goods. Highligh ts: ♦ the transition from the social protection system to the social sufficiency model is justified; ♦ some prerequisites for the emergence of social entrepreneurship are highlighted; ♦ the prospects and limitations of social entrepreneurship development are shown.

Olga E. Malykh, Doctor of Economics, Professor, Professor of the Economic Theory Department of the Ufa State Petroleum Technological University.


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