Social entrepreneurship is characterized by business that is connected with the desire for social change. In contrast to entrepreneurship in the strict sense, where the main goal is to achieve profit, while the main goal of social entrepreneurship is to find solutions that improve the quality of life for as many people as possible. Social innovation is closely related to social entrepreneurship. Innovations mean completely new or improved products, processes, methods in business practices, workplace organizations or external relations. The goal of social innovation is to combat the negative aspects of capitalist social influence and the profit-oriented behavior of companies within all economies. The importance of social entrepreneurship and innovation is enabling businesses to achieve their own success by helping others. Social innovation and social entrepreneurship in the Republic of Croatia is a relatively new concept and an insufficiently recognized way of thinking in the economy and on the market. For this reason, this paper deals with the issue of social entrepreneurship and social innovation with reference to the Republic of Croatia.