In the modern conditions of a multipolar world, the relevance of the development of socially oriented structures aimed not only at making a profit, but also at providing a social creative effect in society is increasing. However, a gap remains in scientific and regulatory practice: an insufficiently developed system of institutional support, criteria and mechanisms for recognizing enterprises as social are poorly defined. The purpose of the article is to analyze the institutional conditions for the formation of sustainable development of social entrepreneurship. The methodological basis is formed based on structural, functional, and comparative legal analysis. The empirical basis is the data of the Unified Register of SMEs (10,270 social enterprises as of 2024), statistics by leading regions, legislative acts and regional regulatory documents. The main criteria for selecting data were the belonging of enterprises to the category of social, the form of ownership and participation in state support. As a result, institutional barriers were identified: the complexity of registration procedures, business non-compliance with strict criteria (for example, compulsory employment of 50% of vulnerable citizens), and limited conceptual apparatus. The authors propose to clarify the criteria, expand the list of vulnerable groups, adapt the requirements for regional specifics, and strengthen support through PPP mechanisms. These measures are aimed at reducing the administrative burden and increasing the involvement of entrepreneurs. The results can be used by authorities and the business community in the formation and adjustment of sustainable development strategies. Further development of the topic involves testing the methodology for assessing the effectiveness of the proposed measures in the context of various socio-economic conditions of the constituent entities of the Russian Federation, taking into account regional investments in human capital.