Innovations are the term that follows mankind from its very beginnings until today, from the discovery of fire, tools, agriculture, industrial revolution, and up to the technological advancement of the 21st century. Innovation is considered to be the application of a new or significantly improved product process, a new marketing method, or a new organizational approach to business practices, job organization or external relations. Innovations are the main key growth and business performance of every business, including the economy itself. Social innovations are the foundation and basic tool in "struggle" with negative aspects of social influence of capitalist and purely economic and profitoriented behavior of all micro, small, medium and large enterprises within all world economies. Social innovations represent all the ideas, organizational forms, processes, strategies, products and services that improve their social environment and protect it and also encourage the development of a healthy green economy. Entrepreneurship is the foundation of the country's construction and prosperity. The economic, social and institutional development of a country depends primarily on entrepreneurial development in that country. Social entrepreneurship is a relatively new term in economics, and the main difference between this form and other forms of entrepreneurship is precisely the goals on which social entrepreneurship is based. These goals are based on the fulfillment of social tasks, helping those groups in society who are at risk of social exclusion, aspirations to sustainable development, and with the aforementioned profit realization. Social entrepreneurship plays an important role in stabilizing the labor market as socially-owned enterprises employ the most marginalized groups of workers such as mothers, elderly people, people with physical or mental disabilities, non-educated workforce, and so on. Social innovations and social entrepreneurship are still insufficiently known and accepted in the way of thinking and acting in the economy and on the Croatian market. There are not many social innovations, and most of those implemented are not original innovators of the implementer, but the copies seen in other markets and economies. Innovations in general represent a weak point and a major challenge for the Croatian economy. The reason for this is based on insufficient investment in research and development activities and branches.