EUROPEAN INITIATIVES IN THE SPHERE OF SOCIAL ECONOMY: ANALYSIS OF TOOLS, POLICIES AND OPPORTUNITIES TO STRENGTHEN INCLUSIVE DEVELOPMENT IN UKRAINE

Abstract

The article provides an analysis of European initiatives in the field of the social economy and evaluates their potential to strengthen inclusive development in Ukraine. The study systematizes conceptual approaches to defining the social economy as a sector oriented toward social value creation, democratic governance, community-based development, and social innovation. Particular attention is devoted to major policy frameworks of the European Union, including the Social Economy Action Plan, the European Pillar of Social Rights, employment and skills strategies, microfinance mechanisms, and programs aimed at supporting vulnerable groups and forcibly displaced persons. The analysis demonstrates that the European Union has developed a multilayered institutional and financial architecture that promotes the growth of social enterprises, cooperatives, associations, and civil society organizations, broadens employment opportunities, enhances access to social services, and strengthens community resilience. The Ukrainian context is examined through the lens of its capacity to adopt European practices, with emphasis on existing barriers such as insufficient legal regulation of social economy actors, limited access to financial instruments, institutional weaknesses at the local level, and low awareness of social economy models. The research identifies priority directions for adaptation, including the promotion of social entrepreneurship, establishment of social innovation hubs, expansion of microfinance schemes for vulnerable groups, modernization of social service systems, and development of social infrastructure. The findings reveal that the integration of European approaches into Ukraine’s recovery and modernization agenda can significantly enhance inclusive economic growth, human capital development, and social cohesion. The recommendations formulated in the article may serve as a foundation for public policy measures, regional development strategies, and practical initiatives that aim to strengthen the social economy in post-war Ukraine.