IMPACT INVESTING AS A FACTOR OF FINANCIAL SUSTAINABILITY OF SOCIAL ENTREPRENEURSHIP IN UKRAINE

Abstract

The relevance of the study is is determined by the growing role of social entrepreneurship in addressing socially significant problems under conditions of socio-economic instability and limited access to traditional financial resources in Ukraine. In this context, the search for effective financial instruments capable of ensuring the long-term financial sustainability of social enterprises becomes particularly important. The purpose of the article is to provide a comprehensive study of impact investing as a tool for ensuring the financial sustainability of social entrepreneurship, as well as to define its essence, features, and role in the development of socially oriented business models in Ukraine. The methodological framework of the study is based on a combination of general scientific and special methods. In particular, the method of theoretical generalization is used to reveal the essence of impact investing; comparative analysis is applied to compare different sources of financing; statistical and economic-analytical methods are used to assess the dynamics of investment processes; coefficient analysis is applied to determine the rates of change; and a systemic approach along with modeling is used to examine the relationship between impact investing and social entrepreneurship. The results of the study include an analysis of the current state of social entrepreneurship development in Ukraine and the identification of key challenges, such as limited access to financial resources, income instability, underdeveloped markets for social goods and services, and regulatory barriers. It has been established that impact investing demonstrates faster growth compared to traditional forms of financing and serves as an important source of capital for social enterprises. The interconnection between impact investing and social entrepreneurship is substantiated, particularly through the combination of economic and social effects, improved operational efficiency, transparency, and increased investment attractiveness. Key barriers to the development of impact investing in Ukraine are identified, and perspective directions for its further development are outlined. The practical value of the article lies in the possibility of applying the obtained results to develop effective financing strategies for social enterprises, improve mechanisms for attracting impact investments, and support the formulation of public policies aimed at fostering social entrepreneurship and expanding the impact investing ecosystem in Ukraine.