In the face of unprecedented challenges, Ukraine’s social enterprises are emerging as unexpected heroes, driving economic resilience and post-war recovery. A groundbreaking study led by Liudmyla Kot, a researcher at Taras Shevchenko National University of Kyiv, sheds light on the pivotal role these hybrid socio-economic actors play in maintaining local economic activity and fostering regional reintegration.
Published in the Baltic Journal of Economic Studies (translated from the original Baltic Journal of Economic Studies), the research delves into the institutional, redistributive, and territorial functions of social enterprises under wartime conditions. Kot and her team employed an interdisciplinary approach, combining institutional economics, resilience theory, and social innovation studies to analyze the adaptation strategies of these enterprises.
The findings are striking. Social enterprises in Ukraine have demonstrated remarkable agility, rapidly reorganizing to fill systemic gaps left by weakened state and market actors. “Their hybrid models allowed for rapid reorganization under conditions of disruption,” Kot explains. “They shifted to digital platforms, diversified services, relocated operations, and forged cross-sectoral partnerships.”
These enterprises have provided employment to vulnerable groups, maintained access to basic services, and reactivated regional supply chains. They have also contributed to restoring institutional trust by engaging in transparent, participatory governance at the community level. Quantitative metrics such as Social Return on Investment (SROI) and employment sustainability, alongside qualitative indicators like trust and embeddedness, confirm their role as resilient infrastructure in a fragmented state.
The study’s implications for the energy sector are profound. Social enterprises could play a crucial role in rebuilding and maintaining energy infrastructure, particularly in de-occupied and high-risk zones. Their ability to combine market mechanisms with civic missions could drive innovative solutions to energy challenges, from decentralized renewable energy projects to energy efficiency initiatives.
Kot’s research calls for the strategic institutionalization of social entrepreneurship through legal definition, national standards for impact measurement, and blended financing tools. Recognizing their role in national policy and aligning support mechanisms with EU frameworks will be essential to unlocking their full potential in post-war reconstruction.
As Ukraine looks to the future, the lessons from this study could shape the way social enterprises are integrated into national and EU-aligned recovery strategies. The energy sector, in particular, could benefit from the innovative, community-driven approaches pioneered by these resilient actors. By embracing social entrepreneurship, Ukraine could not only rebuild but also reimagine its economic landscape, fostering a more inclusive, sustainable, and resilient future.