The subject of research is social entrepreneurship and its role in the economy of the Republic of Croatia. Unlike traditional entrepreneurship, social entrepreneurship strives for social impact where everything is not about profit, although profit is important for the very survival of the company. The main research of the work is reflected through a sustainable approach to the management of social enterprises, which have greatly gained in importance due to globalization and the development of technology. Global problems such as hunger, poverty, inadequate health conditions, questionable sustainability of pension funds, unemployment, global warming and environmental degradation have led governments and public institutions to difficulties in solving problems. On the other hand, the door is open to the private sector and their innovative ideas to solve the mentioned difficulties precisely through social entrepreneurship. The goal of the research is reflected through the definition of social entrepreneurship, the presentation of goals and criteria for the development of social entrepreneurship. The aim of the work is to create a SWOT analysis and a presentation of the financing strategy for the development of social entrepreneurship. Examples of good practice in the European Union will be the forms of social entrepreneurship in Slovenia and Portugal and their legislative frameworks for encouraging the development of social entrepreneurship. Examples of social entrepreneurship in the Republic of Croatia are the credit union Noa and the civil society organization ACT group. By interpreting the role of social enterprises in the world and analyzing social enterprises in the Republic of Croatia, the importance of social entrepreneurship in the economy and modern society is shown. Particular emphasis is placed on the specifics of the social, political and economic context of the development of social entrepreneurship aligned with the goals of socially responsible business. In order to exploit the full potential of the development of social entrepreneurship, it is necessary to establish clear legislative frameworks where the integration of policies, measures and strategies of the state would enable adequate financial support. The role of social entrepreneurship is taking an increasingly important place in the world and in the Republic of Croatia and is becoming a priority for the development of social well-being at the global level.