IMPACT OF SOCIAL ENTREPRENEURSHIP ON HUMAN CAPITAL DEVELOPMENT IN THE CONTEXT OF GLOBAL TRANSFORMATIONS

Abstract

The article examines the impact of social entrepreneurship on the development of human capital under conditions of global transformations and socio-economic challenges. It is established that human capital represents a fundamental determinant of national competitiveness, while social entrepreneurship serves as an institutional environment for its practical reproduction. Building upon the classical theories of G. Becker, T. Schultz, P. Romer, and R. Lucas, the study outlines the evolution of the concept of human capital as a system of knowledge, skills, competencies, and socio-psychological characteristics. The development of human capital is shown to result from the synergy of educational, social, and institutional factors, most effectively realized within social entrepreneurship. The theoretical and methodological foundations of the relationship between social and human capital are substantiated, particularly through the coupling coordination concept proposed by P. Sheng, S. Wang, and H. Zhao, which explains the nonlinear interdependence between educational potential, social trust, and innovative activity. A regression-based econometric model is developed to quantify the influence of social entrepreneurship on human capital indicators, considering educational, social, and institutional effects. Empirical evidence confirms that social enterprises in Ukraine act as centers for developing competencies, labor skills, and social values, thereby contributing to community development and employment growth. According to OSCE (2019), Pact Ukraine (2017), UNDP (2024), and the Innovation Development Center at KSE (2024), Ukraine’s social enterprise sector includes hundreds of active initiatives implementing educational programs, retraining projects, veteran reintegration schemes, and employment for people with disabilities. It is shown that in regions with higher levels of social capital and institutional support, the effect of social entrepreneurship on human capital is significantly stronger (correlation coefficient r = 0.64, p < 0.05). Four key mechanisms of influence are identified: educational-innovation (training, reskilling, mentorship); labor (employment creation for vulnerable groups); socio-psychological (motivation, self-esteem, resilience); and network-institutional (community social capital, trust, and cooperation). Social entrepreneurship acts as a catalyst of the “educational-innovation cycle”: investment in education → increase in human capital → productivity growth → expanded educational opportunities. The results demonstrate that in the context of wartime and postwar transformation, social entrepreneurship becomes a strategic tool for human capital development in Ukraine. It promotes inclusiveness, professional mobility, self-employment, and social cohesion, compensating for the weaknesses of public employment and education policies. The paper emphasizes the need to integrate human capital development policy into national and local programs supporting the social economy. Thus, social entrepreneurship emerges as a systemic component of a new model of human capital reproduction based on self-reliance, social responsibility, and partnership. Its continued development determines the trajectory of sustainable economic growth and social stability for Ukraine in an increasingly globalized world.