Iryna Verkhovod

Type of the article: Research Article

Russia’s full-scale military aggression against Ukraine has profoundly transformed the defense-industrial complex (DIC), which as of 2025 includes more than 800 enterprises with over 300,000 employees. The social welfare needs of defense-related populations have intensified: 1.56 million veterans, 3.7 million internally displaced persons (IDPs), and their families require support exceeding the capacity of existing protection mechanisms. Social entrepreneurship (SE) and the defense industry have been studied in isolation, while the potential of their interaction lacks theoretical substantiation. The purpose of the article is to theoretically substantiate a conceptual model of the SE ecosystem within the social welfare system of Ukraine’s DIC under martial law conditions. The study employs a systematic literature review, comparative analysis of theoretical approaches to SE (Earned Income, EMES, WISE), and secondary data analysis on the defense sector and target groups. Synthesizing the ecosystem approach, hybrid organization theory, and work integration models, the authors develop a conceptual model encompassing a three-tier architecture (macro, meso, micro levels), a five-group stakeholder interest matrix, four types of resource flows, and a five-level maturity indicator system. Comparison confirmed the highest applicability of EMES and WISE to the defense sector. Diagnostics revealed critical gaps: IDP unemployment stands at 17%, temporary housing occupancy reaches 90%, and one-third of IDPs lack earning opportunities. The developed indicators place the ecosystem at an initial-basic maturity level. The findings substantiate the ecosystem approach to SE in the defense sector and provide a theoretical foundation for specialized SE legislation, social procurement mechanisms, and entrepreneurship education for veterans and DIC employees.