Interaction of social enterprises and state in Bulgaria

The study considers social enterprises and social entrepreneurship as an example of a sustainable business model driven by both social and economic goals. The research analyzes different types of Bulgarian social enterprises providing social, medical, educational and training services and presents their main characteristics. The concept of social economy is explained, and its basic functions (social, economic, social and political ones) are identified. The author concludes that social economy takes a certain amount of space between the state (with its defense mechanisms) and the market (with its economic efficiency and focus on capital-based profits). The larger is this space, the greater is the need for social economy able to meet the challenges that cannot be addressed by existing institutional practices.