The aim of the present research is to examine the factors determining the development of social entrepreneurship and to identify the main development directions of it in Latvia. To achieve the aim, factor analysis and clustering was used. As a result of the factor analysis, two complex factors were identified that influence the development of social entrepreneurship in Latvia. Based on the clustering results, 5 clusters were identified. The research results showed that socio–economic problems are significant in all the territory of Latvia, but the approach to solving the problems is different.