The aim of the study was to explore leadership in social enterprises. It examined how leaders in social enterprises operate by considering insights in their experiences and opinions on the importance of motivation and empowerment of employees. Qualitative data have been gathered using interviews with the leaders of five Swedish social enterprises and research observations. The result shows leaders motivate employees by giving them responsibility, indicating that they are needed and their opinion matters and increasing their self-confidence. Leaders in social enterprises construct a democratic empowering leadership that is context related and adapted to the qualifications of the workforce. They empower employees through delegating duties, supervising them when it is needed; supporting them by giving feedback and encouraging them through open communication, participation and team work. Research on leadership in social enterprises can contribute to the literature by providing an alternative model of successful leadership that empowers employees and seeing the person behind a situation. Leadership descriptors and how succesful leaders function is a vital ethical issue for the development of a democratic participatory leadership. The developed model can be useful for the sustainable development of Social Enterprises, the creation of value for stakeholders and to increase the welfare of the society. For future studies comparative research from the perspective of employees and social enterprises in other countries is suggested to observe aspects important and relevant for the empowerment of employees.