Legal framework for business with a social mission


Governments can support and facilitate social enterprises by acknowledging their special character and contribution. By officially defining “business with a social mission” as a form, the government creates a basis from which it can provide direct support for these enterprises. Defining specific legal forms is uncommon; however, doing so means the government can implement tax exemptions or reductions; provide low-cost loans; devise favorable public procurement mechanisms; expand on fiduciary duties to reflect stakeholders other than shareholders; or provide technical assistance.

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