Socio-economic mechanism for the development of cooperation in Ukraine: integration of economic efficiency and social mission

Abstract

This article investigates the socio-economic mechanism for cooperative development in Ukraine, examining the integration of economic efficiency and social mission objectives. Employing a mixed-methods approach combining theoretical analysis, statistical examination, and comparative assessment, the research analyzes the current state of Ukrainian cooperatives and proposes an integrated framework for their sustainable development. The study identifies key challenges facing Ukrainian cooperatives including inadequate legislative recognition, limited access to financing, weak professional management capacity, and underdeveloped social impact measurement. A novel conceptual framework is developed comprising four interconnected subsystems: regulatory, organizational, financial, and social impact. The framework addresses the dual nature of cooperatives as both economic enterprises and social organizations, drawing on International Cooperative Alliance principles and European best practices. Research findings indicate that Ukrainian cooperatives possess significant untapped potential for inclusive economic development and rural community revitalization. Practical recommendations are formulated for policymakers and cooperative practitioners regarding legislative reform, institutional innovation, and governance improvement to enhance cooperative sector effectiveness within Ukraine's European integration context.