Social entrepreneurship is a specific type of entrepreneurship based on the principles of social, economic and environmental sustainability, and its profit is invested in the creation of social capital for the benefit of society. Its potential is great in dealing with new risks and forms of social needs with which is difficult to bear for public policy and society today. In order to fully exploit its potential it is important to really understand what this form of entrepreneurship represents, in which forms it occurs and in which areas is specifically applicable. In order to do that, this paper is moving from the start, the occurrence and development of social entrepreneurship, through its theoretical definition, stating its specific characteristics and those that distinguish it from traditional entrepreneurship. Then we look at its development on the example of Croatia, on the scientific and institutional level, and ultimately we are introduced to concrete examples of social entrepreneurship in practice, principles, mission and vision by which its lead.