Global recession in which the world financial system found itself on the verge of collapse a decade ago has sparked numerous discussions regarding sustainability of profil-oriented entrepreneurship, social values, and social sensitivity. The newly formed situation consisted of changes when it came to ethical and moral values, as well as social differences became more noticeable. Moreover, to solve the reduce of social gap, new concept of social entrepreneurship has been introduced, based on a very different form of business goals as compared to the goals of the previous predominant market economy. Social entrepreneurship presents a form of business led by social goals primarily, as opposed to the previous profit companies whose main goal was to maximize profit. The main focus of the new social entrepreneurship is to achieve positive changes and to create balance in the society. Its work affects development of the society in a lot of areas such as ecology and environmental protection, education, poverty reduction, increase of production, unemployment reduce as well as reduce of social inequality. Throughout the thesis, terms such as social entrepreneunship and inovation recognized in Republic of Croatia and the world will be mentioned along with the activities that are of high importance for achieving the full potenital. European Union has recognized the importance of social entrepreneurship as a crucial factor in terms of overcoming current economical and social problems as well as its activities which encourage its development among european members. In the current thesis, basic concepts of social entrepreneurship and social inovation were explained in details and important examples from practice are used to explain which spheres of society it is related to as well as in what way it changes the community.