Social entrepreneurship and its policy in the European Union and Lithuania

The purpose of this chapter is to analyse the situation of social entrepreneurship in Lithuania, emphasizing its policy and practice in the EU context, striving for sustainable development. The current situation raises the need in deeper scientific research and discussion in this field. Methodology. In the chapter social entrepreneurship and its policy in European Union (EU) and Lithuania moving towards sustainable development is analysed. The analysed object requires special attention of interest, especially in such country as Lithuania, because it might be the key to the country’s economy growth and competitiveness. In the chapter the arguable aspects of social entrepreneurship concept are presented. The complexity and meaning of phenomena is discussed. Later, the main political initiatives and legal documents concerning social entrepreneurship in EU and Lithuania are analysed. Some practical evidence about Lithuanian enterprises implementing social activity is presented and overall recommendations how to improve situation revealed, including political initiatives, state financial support, social entrepreneurship’s education and culture development. Findings. Analysis of social entrepreneurship, its concept complexity and its policy in EU and Lithuania revealed some main conclusions. Firstly, it should be emphasized that the role and meaning of social entrepreneurship in economy is not arguable, but some discussion about the concept issues, terminology still remains in research works. Social dimension of entrepreneurship develops fast integrally with environmental and economic, is more broadly discussed and assumed as more understandable and gaining added value. Recently social entrepreneurship became “respectful theme” for analysis in top scientific journals. In Lithuania we lack research works in this field more than in other more developed economically Member States with greater social entrepreneurship practice Secondly, social entrepreneurship might be treated as essential consisting part of sustainable entrepreneurship and overall sustainable development supported in EU Member States. In the newest Lithuanian strategic documents the emphasis was also put on entrepreneurship and sustainability as main drivers for smart and growth economy. Thirdly, Lithuania has rather poor practice in realising social entrepreneurship practically. Some main reasons for that might be distinguished: 1) Lack of finances, especially for SMEs; 2)Weak actions in political level; 3) Poor culture of CSR and social dimension of business; 4) Lack of interest from business side; 5) Insufficient educational programmes promoting social entrepreneurship and its culture. Conclusions and Recommendations. Solving all these mentioned problems could help successfully develop entrepreneurship in Lithuania. Especially, attention should be paid to educational and training institutions providing programmes for young people about entrepreneurship and sustainable development. Lithuania lacks successful innovation leaders