Abstract:

By fusing business methods with social mission goals to generate long-term benefit for communities, social entrepreneurship has emerged as a significant paradigm for tackling societal issues. With an emphasis on their growth inside the European Union, this article examines the operational frameworks and historical history of socially conscious enterprises. Early charitable and community-focused endeavours, including medieval guilds and nonprofit organizations that aimed to address local economic security challenges, are where the idea of social responsibility originated. These early methods developed throughout time, leading to institutionalized approaches to social enterprise that currently combine business operations with a major emphasis on community impact and social welfare. Within the European context, social entrepreneurship has been significantly shaped by policy developments, legal frameworks, and strategic initiatives designed to foster inclusive, sustainable growth. The paper contributes to the socially responsible organizations and social entrepreneurship theory by giving an overview of the development of socially responsible organizations and social entrepreneurship and separating and clarifying the concepts of social entrepreneurship and social enterprise. Finally, the development of the strategic and legal framework of social enterprises in the European Union is presented and potential challenges and lacks of further development identified. Ultimately, this paper underscores the critical role that social enterprises play in filling gaps left by traditional market and public sector approaches, leveraging innovation and community-centred strategies to address pressing societal needs and contribute to sustainable economic development.