Article
The Rise of Benefit Corporations and Social Entrepreneurship
The growing recognition of social and environmental challenges has reshaped traditional conceptions of entrepreneurship and corporate purpose. Benefit corporations and other hybrid organizational forms have emerged as legal and institutional innovations designed to align profit-making with public benefit. These entities challenge the shareholder primacy model by embedding social and environmental objectives into corporate governance structures. This paper examines the rise of benefit corporations in the context of social entrepreneurship, analyzing their legal foundations, governance mechanisms, accountability structures, and economic implications. It explores how benefit corporations seek to resolve tensions between financial performance and social mission while offering entrepreneurs legal protection to pursue impact-driven goals. The paper argues that benefit corporations represent a significant evolution in corporate law and entrepreneurial practice, though they also raise concerns regarding enforcement, mission drift, and regulatory coherence. The study concludes that benefit corporations play an increasingly important role in promoting sustainable and socially responsible entrepreneurship, provided that legal frameworks continue to evolve to ensure transparency, accountability, and legitimacy.