The concept of social entrepreneurship and social enterprise has gained in prominence in the last two decades, in particular, although the roots of the concept can be traced in XVIII and XIX century, with the development of the industrial capitalism. However, the major traits of the concept and the policy ramifications thereof are still subject to vigorous debate among the scholars, practitioners, and policy maker. The article purports to add some clarity to that debate by offering a critical analyses of the major schools of thought purporting to define the concept. Chapter I outlines issues to be dealt with in the article. Chapter II discusses two major schools of thought in defining social entrepreneurship and their policy ramifications. Chapter III deals with the major features of social enterprises and institutional forms in which they operate. Chapter IV details policy activities at the European Union level seeking to promote and strengthen social entrepreneurship.