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The ongoing institutional changes indicate of the growing role of the social economy in the structure of the market economy of European countries. The article analyzes the challenges for the development of the social economy at the present stage, which arise both in the EU countries and in Ukraine. The author summarizes the trends of the social economy development at the present stage and substantiates the priorities for the development of the social economy in Ukraine. Author justifies algorithm of the implementation of the development of the social economy priorities. The directions of stimulating the development of the social economy in Ukraine are highlighted based on the generalization of the practice and experience of the European Union on institutional support for the development of the social economy.