Combating Unemployment through Social Entrepreneurship in the European Context

Сonsideration of the dynamic changes from the socio-economic environment, social entrepreneurship plays an essential role in the labour market as it creates new jobs, contributes to the improvement of the economic and social position of vulnerable groups in society, and stimulates economic development. The financial crisis from 2008 and the current health crisis, which generated a significant economic crisis and the specific social context existing in each member state, constitute the leading causes that led to a slow convergence rhythm of the labour market at the European Union level. Unemployment and non-employment have a significant impact on the people affected by poverty and the disadvantaged people. A coherent, systematic and sustainable approach to social entrepreneurship is required to generate significant change at the European level. Innovative solutions to current economic, social and environmental challenges are needed since the private or/and public sectors do not fully meet the communities' existing needs. The aim of the paper is to analyze how social entrepreneurship contributes to the reduction of the unemployment rate, by meeting the objectives set out in the Europe 2020 Strategy, to create a sustainable and inclusive social market economy, and to improve social cohesion. The quantitative method, based on the data found in various international journals, statistical reports and electronic databases, was used by the authors to accomplish the objective of the paper. The paper illustrates that social entrepreneurship is a complex process in which resources are used in an efficiently and effectively way, new skills, competences, and knowledge are accumulated, which turn into social and economic innovation, having a positive impact on productivity and the creation of highly skilled jobs, as well as maximizing the opportunities which lead to social change.