The paper analyses the peculiarieties of social economy, focusing the scientific attention to social enterprises and their environment in EU and, especially, Lithuania. The research problem of the paper lays upon revealing the situation and development of social entrepreneurship and social enterprises in EU and Lithuania, especially emphasizing rural areas and their peculiarities. The aim of the paper is to disclose the role of social economy and the importance of social enterprises in it, especially concentrating on the environment analysis for such business in Lithuanian rural areas. In the research paper, there were analysed social economy context and importance, legal, economic and social environment of social enterprises in Lithuanian rural area, and social enterprises in Lithuania in terms of latest statistical data. Main findings of the fulfilled research are following: social economy remains very important in EU countries, but the exposure of it is quite different in various countries. Lithuania is trying to implement the principals of social economy in the policy of the country. Now the attention is focused on social entrepreneurship and social enterprises as the unused potential for economy boost in the country. Environement analysis of social enterprises, especially focusing on rural areas of Lithuania, revealed that situation is getting better, but there are a lot of things to be improved for successful development of social business in the country. The improvement should start from public institutions and their focused activity to improve conditions for social enterprises. Otherwise, intentions from business actors are very important also. The further guidance of this research could lead to deeper analysis of social entrepreneurs' intentions due to starting up social business gathering primary data from the potential and existing entrepreneurs. Rural areas remain as unexplored area for social business creation, especially when additional financial support is planned for them.

The paper aims to analyse the situation of family farms in Lithuania regarding essential problems and challenges. Family farming in Lithuania remains new phenomena in a period after gaining independence after the 1990s. Family farms are very important for Lithuanian rural areas as they create the main job places and income for the citizens. The need to analyse the situation about family farms in Lithuania remains on the problems disclosed in the research. It could be named as lack of legal acts concerning family business, poor managerial traditions of family farming comparing with other EU countries, lack of financial resources for innovative growth, poor family business including family farming culture and lack of values keeping families together, lack of interest of family farmers in diversified activities including social entrepreneurship in rural areas. The grounded solutions and suggestions how to improve situation in rural areas for family farmers are needed. One of the suggestions in this paper about the situation is diversified family farms activity with additional innovative activities and deeper involvement of young farmers in the family business. Social entrepreneurship could be a possible solution for family farms in rural areas.