This paper deals with the concept of social entrepreneurship, which is still a relatively new and unexplored concept in Croatia. It is precisely the aim of the work to see what opportunities or potentials are provided to young people in terms of employment through the concept of social entrepreneurship. Namely, Croatia is facing high youth unemployment. In the first part of the paper, the concepts of social entrepreneurship, the social enterprise and the social entrepreneur are delineated to facilitate understanding of the concept itself. The second part discusses the legal and institutional framework for the development of social entrepreneurship in the European Union, but also in the Republic of Croatia, which should help to present the possibilities of social entrepreneurship. The third part of the paper shows the extent of youth unemployment in Croatia and detects the most vulnerable groups of unemployed youth, but also the consequences of youth unemployment and the social policy measures aimed at youth integration into the labor market. In the fourth part of the paper, the focus is on the potentials and opportunities offered by social entrepreneurship when it comes to young people and their employment, whether it is the establishment of a social enterprise, work in an already existing social enterprise or the implementation of social entrepreneurship education. The last part mentions relevant research on the attitudes of young people towards social entrepreneurship and employment in social enterprises and cites forms of support for young social entrepreneurs who should increase their number. Finally, examples of good practice are also mentioned in Croatia and it is concluded that, among other things, it is important to educate young people about social entrepreneurship, as this segment of the work has shown itself as a part to be worked on.