EVALUATION OF THE EFFECTIVENESS OF THE SOCIO-ECONOMIC MECHANISM FOR THE DEVELOPMENT OF COOPERATIVE ENTERPRISES

Abstract

The article investigates the theoretical and methodological foundations of evaluating the effectiveness of the socio-economic mechanism for the development of cooperative enterprises. The study emphasizes that cooperative enterprises possess a dual-purpose nature, combining economic efficiency objectives with social outcomes for their members and local communities, which necessitates a fundamentally different approach to performance assessment compared to conventional business entities. The essence and structure of the socio-economic mechanism are revealed, encompassing organizational, economic, social, institutional, and innovation subsystems that collectively ensure the purposeful development of cooperative formations. Scientific approaches to evaluating the effectiveness of cooperative activities are systematized, highlighting the limitations of purely financial assessment methods for enterprises with inherent social missions. The research substantiates a comprehensive system of criteria and indicators for effectiveness evaluation, organized into two principal groups: economic criteria (profitability, labor productivity, capital efficiency, self-financing capacity) and social criteria (employment levels, cooperative payments, member satisfaction, social investment intensity, membership dynamics). A conceptual model for comprehensive effectiveness evaluation is developed, which integrates sequential analytical stages from data collection through economic and social analysis to formulating management decisions. The model accounts for synergistic effects arising from the interaction of economic and social components, demonstrating that improvements in social performance indirectly strengthen the economic position of cooperative enterprises. The study identifies key challenges undermining the effectiveness of the socio-economic mechanism in Ukrainian cooperatives, including regulatory deficiencies, limited financial literacy, restricted access to capital, and weak market integration. Practical recommendations are proposed for implementing monitoring systems and digital management tools to enhance the adaptive capacity of cooperative enterprises in the context of European integration processes.