Our empirical study explores how social entrepreneurs’ metacognition — awareness and regulation of thoughts and feelings — affects the entrepreneurial process of social and environmental value creation that supports positive socioeconomic change toward sustainability-as-flourishing (defined below). We use an inductive design that yields patterns across five German cases of social entrepreneurship at different levels of analysis. Findings at the individual level reveal social entrepreneurs’ metacognitive abilities facilitated awareness of discontent about social and environmental problems. These abilities included perspective-taking, empathy, suspending rushed judgment, seeing a bigger picture, and reducing ego-defensiveness. The discontent then activated a creative social entrepreneurial response. Findings at the enterprise level show how social entrepreneurs resolved conflicts with recalcitrant external stakeholders by calming stakeholders’ anxieties and negativity. At a societal level, social entrepreneurs were shown to co-create change by consciously investing in and empowering external stakeholders. We induce theory that depicts how the individual, enterprise, and societal levels interact, thus drawing a more complete picture of the social and environmental value creation process. By considering entrepreneurs’ metacognition, this study extends the predominant research focus from external, objective entrepreneurial phenomena to the internal, subjective dimension of social entrepreneurs. It offers insight into the process of how enterprises could potentially contribute to a flourishing future for humans and the planet.