In my study I attempted to give a thorough picture of the terminology of social economy, of the evolution of cooperatives in Hungary and of the current situation of social cooperatives both on a national and international level. I focused on the underlying causes of the success or failures of cooperatives. The topic continues to gain importance in the ever more intense economic competition of the present, which in turn results in rapid changes in social inequalities. Intense competition on the market causes increasingly rapid appearances of ever growing numbers of the disadvantaged who no longer possess the resources to break into the primary labour markets. Social cooperatives can be a powerful means to combat these inequalities and to support the integration of their members into the labour market and into wider society. My study aims to analyse the situation of social cooperatives registered in the Northern Great Plain Region of Hungary. I used national databases to focus on and analyse the social cooperatives of the region. My goal was to present the advantages and disadvantages of social cooperatives. To date, I have interviewed the heads of 33 social cooperatives. I processed the findings of my interviews through thematic analysis. I found that considering the low membership of the few available cooperatives within the region the above method would prove the most viable. As part of my work I also aimed to investigate the state of the infrastructure, as well as the leadership, social networks, marketing techniques, financial management, future plans, and the conditions surrounding the formation of each cooperative. My empirical research uncovered a growing dependency on projects and found that working under the local government can lead to violations of principles. On the other hand, cooperation with the local government proved to be beneficial considering the small size of owned capital. Sustainability of social cooperatives is further made more difficult by the negative connotation and biases that came to be attached to the term in the country.