The purpose of writing this final paper is to explain the term and characteristics of social entrepreneurship. Social entrepreneurship is a relatively new term that signifies entrepreneurial action, whose primary purpose is not solely financial benefit or profit. The goal of social enterprises is to tackle social problems such as hunger, poverty, deprivation, to secure stable jobs, protect the environment and address other problems affecting society. Social entrepreneurship represents a new paradigm in doing business by providing solutions that would improve the entire community. This form of entrepreneurship nevertheless possesses a link with traditional entrepreneurship and that is profit. Although generating profit is not the primary goal of social enterprises it is still very significant because it ensures the financial independence and sustainability of the business mission. Therefore, the way of doing business is not significantly different from the traditional way of doing business – both, traditional and social entrepreneurs must compete on the market, seize the opportunity and satisfy the needs of customers. Traditional entrepreneurs are doing this for profit, while social entrepreneurs do it for the sake of social and economic development of their communities.