WAR-ADJUSTED SOCIAL RETURN ON INVESTMENT (W-SROI) AS A TOOL FOR ASSESSING THE IMPACT OF SOCIAL ENTREPRENEURSHIP ON ADDRESSING SOCIO-ECONOMIC CHALLENGES CAUSED BY WAR
DOI:
https://doi.org/10.31732/2663-2209-2025-80-108-117Keywords:
social entrepreneurship, social enterprise, human capital, social inclusion (veterans, vulnerable population groups), post-war recovery, social security, social impact, social innovation, Social Return on InvestmentAbstract
Social entrepreneurship (SE) in the context of Ukraine’s post-war recovery is one of the key instruments for restoring employment, revitalizing local economies, and promoting the social integration of vulnerable groups. However, under the conditions of Russia’s ongoing war against Ukraine, traditional methods for assessing social return on investment, in particular the Social Return on Investment (SROI) approach, require adaptation to the wartime context. The classical SROI methodology, which is widely applied to evaluate the impact of social enterprises in peacetime [10], does not take into account specific factors associated with the loss of human capital, business relocation, infrastructure destruction, and the increased social value of basic needs during wartime.
This study proposes a new impact assessment method—War-Adjusted Social Return on Investment (w-SROI)—which enables the calculation of an integrated indicator of social return on investment that incorporates adjustment coefficients reflecting war-related risks and economic losses.
Under the current conditions in Ukraine, a combination of necessity-driven and opportunity-driven entrepreneurship is emerging, with the social mission increasingly defining the content and direction of entrepreneurial activity. This provides a foundation for considering social entrepreneurship as an essential mechanism for restoring human capital, fostering local community development, and strengthening the economy in the post-war period.
Social entrepreneurship represents a crucial instrument in Ukraine’s post-war recovery, contributing both to economic growth and to the resolution of social challenges. Supporting this sector is imperative for ensuring the country’s sustainable and inclusive reconstruction.
Accordingly, to better understand and assess the impact of social entrepreneurship under wartime conditions and during post-war recovery, the author proposes complementing the classical measurement approach with an adjusted indicator — War-Adjusted Social Return on Investment (w-SROI).
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