As a reaction against neo‐liberalism, Social Entrepreneurship has been promoted as the solution to welfare problems brought about by social change and persistent unemployment. The Social Entrepreneurship Movement (SEM) proposes the reconstruction of welfare by building social partnerships between the public, social and business sectors. Major aspects of this agenda include non‐profit organisations undertaking entrepreneurial ventures and the pooling of government welfare funding under the control of local communities.In this paper we argue that the SEM literature is based on two false premises: the failure to understand the true causes of mass unemployment, and the assumption that the government faces financial constraints in the provision of welfare services. We also argue that implementation of the SEM proposals would erode the rights‐based eligibility to universal welfare services based on the principle of social justice. We also conclude that the SEM is indistinguishable from neo‐liberalism and as such does not represent a viable solution to unemployment and the welfare needs that accompany it.

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