Social entrepreneurship is a business model whose primary goal is not increasing profit but improving social standard and promoting social sensitivity.Social entreprises provide services and products to endangered social groups,thus trying to improve their life standard and protect them from being excluded from society.The relativety new business model is increasingly applied,both in Croatia and the world.It offers local solutions to some social issues like unemployment,hunger and poverty.With incentives in the form of state legal legislatures,dissemination of information about the model and investing in forming and maintaining individual entreprises social entrepreneurship has plenty of potential.In the Republic of Croatia,which almost tops the EU'unemployment percentage charts (among young people),a long- term solution is required to reduce that percentage.Should the Government create a favorable foundation for the establishment, development and maintenance of social entreprises and should the public become more informed about social entrepreneurship,such business models could eventually become optimal in resolving social problems and improving life standard for a large number of people.