Research Models for Financing Social Business: Theory and Practice

Abstract

In the establishment of social enterprises with further functioning, there exists the problem of accessing investments. Therefore, theoretical and managerial aspects of the models formation of financing social entrepreneurship in the global economy are discussed in the article. The purpose of this research is consideration in financing methods of social enterprises for competitiveness in provision of the highest quality services and improvement of living standards. In order to achieve this purpose, methods of logical analysis, expert assessments, comparison method as well as systems analysis, synthesis, induction, deduction and analogies were applied.

Moreover, the literature review on problems of social entrepreneurship development were analyzed. The approaches of social entrepreneurship definition and its disparity from charitable organizations and traditional businesses were highlighted. Furthermore, comparative analysis of the European and American models of financing social business was provided. The results are presented in five tables. The discussion of financial support for social enterprises is more active at all levels of government compared with the United States. In conclusion, the investment transparency of such enterprises with open accounting system should be driven by future development of social entrepreneurship. In view of this, conditions for the formation of social-financial market can be created.

Keywords: Economics, Business