Social entrepreneurship becomes more important subject on the labour market. It is clear that social entrepreneutship could be the key solution for essentials problems such as social problems, health care, education or ecology. The European Union acknowledged the existence of social entrepreneurship years ago and today it's celebrating its development. In spite of The European Union support, member states have some problems with the understanding of the concepts of social entrepreneurship and they are not so interested in working on their policy in order to promote its benefits. Frameworks of social entrepreneurship are hardly shaped and the result is difficult way to make it easier to access to those who wants to engage in social entrepreneurship. This working paper disseminates development and definition of social entrepreneurship, the main differences between social and commercial enterpreneurs and good practice guides. This paper also analyzes legal and institutional framework of social entrepreneurship and lack of it. Social entrepreneurship doesn't have the corresponding legal framework in Croatia. Although the experts emphasize its big role in society, the government usually neglects them. There should be much more treatises and paper works about social entrepreneurship in order to explain the concept of it and to support its developing because it is obviously that social entrepreneurship could be one of the best answers to state development.