The Law of Social Enterprises: Surveying a New Field of Research

Abstract

Social enterprises are becoming increasingly popular across the globe. They are seen, particularly by younger generations, as an exceptionally promising organizational model. More recently, the idea to tackle social challenges with entrepreneurial means has also been met warmly by policymakers. However, the legal framework for social enterprises remains poorly developed and legal analysis of the subject matter in academia is only slowly gaining momentum. Against this background, this article outlines the multifaceted, real-world phenomenon of social enterprises in business practice and management research, whereby different patterns of thought in Europe on the one hand and in the United States on the other can be identified. It then introduces the (corporate) law of social enterprises, especially the development of new organizational forms, and takes stock of this gradually emerging field of research in Germany, Europe, and the United States. Furthermore, it addresses research perspectives and open questions in the new field of social enterprise law, highlighting, inter alia, that one should distinguish more strongly than before between different models of social enterprises and organizational forms when considering a new legislative creation.