Social entrepreneurship is considered a new, innovative business model for entrepreneurs, although it is a term that has been developing for centuries. That is, although it can be considered that the beginnings of this term were visible several centuries ago, social entrepreneurship did not develop intensively until the 21st century. It is a type of entrepreneurship that is very different from the traditional understanding of entrepreneurship, especially for the reason that social entrepreneurship does not aim to achieve profit exclusively in business. Social entrepreneurship is based on the realization of a wide range of goals, which ultimately have a positive impact on the social community and the environment, based on which it is possible to emphasize that this form of entrepreneurship directly contributes to the sustainable development of the economy. Social entrepreneurship in the Republic of Croatia is primarily related to entrepreneurship in the non-profit sector, for example associations or social cooperatives. Although there is a large number of associations, a smaller number of them act as social entrepreneurs, which indicates that there is room for further development of social entrepreneurship in associations in the future. It is possible to point out that the state encourages the development of social entrepreneurship, especially through certain incentives for the employment of people with disabilities and, for example, encouraging business relations with social entrepreneurs. Despite this, social entrepreneurship in the Republic of Croatia is not significantly developed, and there is room for its significant development in the future.