Social enterprises: aspect of social economy development

Abstract

The emergence and development of social enterprises as an element of social economy are associated with the spreading integration of different vulnerable groups. It should be noted that the development of social-economic units in different European countries, which generally could be called social enterprises, were quite spontaneous. This development is closely related to solving local socio-economic problems such as insufficiency of social services, high level of social differentiation, and pressure on the social welfare system. The paper further seeks to introduce the phenomenon of social enterprise, to define its corporate social objectives, design, and work integration patterns. The article concludes that social enterprises in Europe as part of the sheltered employment sector play an important role in the integration of vulnerable groups. However, at the regional and national levels, the economic activity and funding mechanisms of social enterprises should be consistent with the principles of economic competitiveness so as to avoid the discrimination of social enterprise employees and adverse consequences for the other entities of economy, which are beyond the supported employment sector.