As communities experience social problems that negatively impact the health and well-being of residents, there is a growing need for unique, innovative solutions to address them. Researchers are increasingly studying social problems, especially those that require localized solutions. This article introduces Social Entrepreneurial Action Research, a research process that uses social enterprises to advance an iterative cycle of research insights leading to business innovations. Social Entrepreneurial Action Research (SEAR) is driven by community stakeholders, grounded in research, and focused on ongoing societal transformation. This article describes the SEAR process and its theoretical foundation, and demonstrates its application using a case study that provides illustrative examples from a social enterprise as it went through the stages of the process. Social Entrepreneurial Action Research is a method that can be used to address social problems with localized solutions that are community-based, long-lasting, and that result in societal transformation.