Management & Marketing (2009) Vol. 4, No. 3, pp. 19-34. SOCIAL ENTERPRISE AND COMPETITIVENESS Anca BORZA, Razvan NISTOR, Catalina MITRA, Ovidiu BORDEAN „Babes Bolyai” University, Cluj-Napoca Abstract. This article seeks to sustain the social entrepreneurial phenomenon by providing a theoretical and an empirical background of the way that a NPO can increase the level of efficiency and efficacy. Social entrepreneurship increasingly plays a major role in the progress of society in the same way that entrepreneurship promotes progress in the economy. Because NGOs are related to the social entrepreneurship phenomenon, our research was conducted into this type of organization, highlighting the case of „Ajutorul Familiei Fondation” an independent socially oriented organization that focuses on community development at the regional level in Cluj county, Romania. This article reviews a variety of academic and popular sources in social entrepreneurship, nonprofit and business management, as well as public policy. Keywords: social enterprise, competitiveness, strategy, social mission. 1. Conceptual demarcations of Social Entrepreneurship Since ancient times have been organizations focused on helping those in need. These organizations, sustain their activity based on the income sources and the help given by: donations (goods or financial), benefits from the government (tax exemption, taxes, grants), voluntary acts, which almost all the time is not enough. Therefore, depending on the possibilities and the areas of coverage, these organizations were involved also in commercial transactions. For example monasteries promoted trade with wine and cheese, schools requested education taxes, hospitals requested taxes, prisons were involved in community projects working against cost, etc. Even if the term social entrepreneurship is new, we can say that the phenomenon is not new at all and it was manifested in all sectors. Numerous organizations with social goals appeared in various forms such as day centers for adults, kindergartens, social housing, training and placement centers, rehabilitation services, elderly care, ambulatory services for those with mental problems, alternative education for those rejected from schools, training centers, private prisons, universities in the private sector (Nicholls,2000). Social entrepreneurship is a very controversial phenomenon that raises many questions. There are a large number of definitions of entrepreneurship awarded each highlighting different aspects of the entrepreneurial process, some with distinct