Social entrepreneurship

Business models with a social mission: combining profit and impact, legal forms, funding

Models and forms

  • Model 1: cross-subsidizing

    A commercial product funds a free service for the target group (café employing IDPs, print shop with free training).

  • Model 2: employing vulnerable groups

    Production/service where >30% of staff are disabled, IDPs, veterans. The state offers wage subsidies for disabled employees.

  • Model 3: base-of-pyramid product

    Affordable goods/services for low-income groups: cheap glasses, repair instead of buying, microloans.

  • Model 4: access platform

    Marketplace/service opening markets to small producers or services to vulnerable groups (social fairs, aid apps).

  • Legal forms in Ukraine

    LLC with a mission in the charter + NGO partner; group-3 sole proprietor; cooperative. The 'business + NGO' combo is most common: business earns, NGO takes grants.

  • Funding

    Grants: USVF, UN programs, embassies, impact accelerators (Ukrainian Social Venture Fund, SILab). Crowdfunding — to prove demand.

  • Impact metrics

    SROI, people employed/trained, % of revenue to the mission. Pick 3–5 metrics and publish quarterly.

Ukraine has no dedicated 'social enterprise' status (bills exist, status doesn't) — work through sole proprietorship/LLC + NGO or cooperative. The key investor/donor question: how do you measure impact (metrics, not emotion).