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Defourny et al. (2001) summarize the basic description of social entrepreneurship using examples

of the new things that arise from social entrepreneurship. These include:
• New products or new quality of products – social entrepreneurship reacts to the

needs of society, and this reaction often leads to the creation of new services or
products.

• New methods of organization and/or production – within social entrepreneurship,
cooperation between various categories of partners takes place, i.e. between paid
employees, volunteers, supporting organizations, local entities, etc.

• New production factors – a combination of paid employees and volunteers is utilized.
One of the specificities of this type of entrepreneurship is the ability to acquire
volunteers.

• New market relationships – in a number of countries, some activities were carried out
exclusively by public providers or via informal methods (family, neighbors, etc.). At

times, the demand for certain services/products to a certain degree remained
unsatisfied. However, the situation is changing, and space for new quasi-markets is
emerging; services are provided not only by public institutions.

Social entrepreneurship is inherently linked to social innovations. Social innovations can concern
a change in a concept, process or product; organizational change or changes in financing; and
also new relationships with stakeholders and territories.

Social innovations look for new answers to social problems via (a) identification of new services
that improve the quality of life of individuals and communities, (b) identification and
implementation of new processes of integration into the labor market, new job opportunities, and
new forms of participation such as the particular elements that contribute to improving the position
of individuals in the workforce (LEED, 2011). The terms social entrepreneurship and innovation
are often seen to be indelible, and the differences between them are blurred. Nonetheless, these
differences exist. Social entrepreneurship focuses on solving problems via own economic activity,

while social innovation plays a prominent role in the process of social entrepreneurship.

Circular economy

Circular economy is not a new term. This concept has long existed in society, but its potential is
not being fully utilized. The growing significance and application of the principles of the circular
economy are linked to the growth of the global population, growth of the economy and dwindling
natural resources. This leads to an increase in pressure on economic entities in terms of self-
sufficiency and the development of new products, processes or services (Weetman, 2021).

Contrary to a so-called linear economy, a circular economy attempts to prevent the creation of
waste. Ideally waste is never created, and resources circulate in the highest possible quality and

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