The social economy and social entrepreneurship are relatively young concepts of social sciences. It is difficult to find a consistent definition of these concepts, though they are so intuitively understandable that virtually everyone is able to identify many different examples of this type of projects. Many organizations in the social economy sector have been functioning for decades, although the very concept of social entrepreneurship or social economy has been recognized by scientists only in the 90s of the twentieth century. In addition, to these concepts also occur, such as the third sector, NGOs, or non-profit organizations, etc., that are identically different, although they have much in common with the social economy. All that complicates the precise handling concepts in the area related to the social economy.
Before the concept of social economy became popular mainly was used a concept of the third sector, by which meant primarily charities or non-profit organizations - mostly associations and foundations. In this way, today the third sector is understood in the United States. In Europe, however, this term also conceals all not-for-profit organizations, like the entire cooperative sector. Such a broad understanding of the third sector in Europe meant that it was necessary to extract conceptually organizations engaged in business activities, but not profit-maximizing or allocating it to achieve social goals - social economy entities.
The social economy is a concept difficult to define and still have not gained widely accepted definition. Sometimes is simply called as "chaotic concept", although it really is a patchwork of many attempts to define what is and what could be the social economy. In defining this concept not very well suited to give institutional and legal framework, as we are often surprised by social entrepreneurs activities in the following legal forms - previously typical first or second sector of the economy. Therefore easier is to define the concept from the objectives and methods of operation.