This is an interpretive study, which uses grounded theory with Glaserian or emergent approach. It counts the components of Social entrepreneurship in Iran and designs a localized model. The research population was Social entrepreneurship experts and founders of Social companies. Through purposive sampling, 19 participants were selected and in-depth interviews were conducted with them. In order to analyze the data, MAXQDA was used and open, selective, and theoretical coding processes were performed. After analyzing the coding process and continuously comparing the codes with the original data, 35 concepts were extracted. Four criteria of trustworthiness, transformability, dependability, and confirmability were used to evaluate the strength of the research. In this model the followings were identified as the central category of Social value creation process: causes (needs, problems, challenges, Social and environmental crises, and the existence of Social opportunities), correlated factors or covariances (individual and Social motivations, proSocial factors, individual entrepreneurial knowledge, educational background, previous knowledge and experience, family factors, personality dimensions, and role patterns), contingencies or moderating factors (entrepreneurial and organizational skills, capital infrastructure, different types of organization, convergence of support institutions, team and networking, having a business model, training and research centers, mentors and growth centers, solving problems of Social entrepreneurs), mediating conditions (legitimacy of Social entrepreneurship, stability and comprehensiveness, attractiveness of Social entrepreneurship activities), consequences (creating values, and spiritual, Social, and economic), context or environment (socio-cultural factors, geographical factors, political factors, economic factors, laws and policies, media). This study provides new perspectives and valuable insights on Social entrepreneurship for future researchers, Iranian Social entrepreneurs, policy makers, and decision makers in this field.