The Joys and Burdens of Multiple Legal Frameworks for Social Entrepreneurship. Lessons from the Belgian Case
AbstractIn the last two decades, several innovative legal frameworks for social entrepreneurship were developed across Europe. The differential success of these innovations raise certain questions. Is the intrinsic design of these legal frameworks optimal for social enterprises? Secondly, is the attractive capacity of these legal frameworks high enough to attract both new as existing social enterprises? And lastly, have these new legal frameworks reached full maturity? If this is not the case, these changes may well impede rather than encourage the development of social enterprises. In this paper, we look at the Belgian situation where an innovative framework was introduced and where multiple legal frameworks for social entrepreneurship coexist. By means of a multi-disciplinary approach involving law and economics, we investigate the joys and burdens of having numerous legal frameworks for social enterprises. We provide an introduction to the Belgian legal environment for social entrepreneurship, and argue that the current institutional design is suboptimal. Finally, we conclude with lessons that can be learned from the Belgian case relevant for other countries and contexts.
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven, HIVA, Cera Centre for Co-operative Entrepreneurship in its series Working Papers on Social and Co-operative Entrepreneurship with number 0903.
Length: 68 pages
Date of creation: Jul 2009
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legal design; social enterprise;
Find related papers by JEL classification:
- K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
- K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-02 (All new papers)
- NEP-EEC-2009-08-02 (European Economics)
- NEP-ENT-2009-08-02 (Entrepreneurship)
- NEP-LAW-2009-08-02 (Law & Economics)
- NEP-REG-2009-08-02 (Regulation)
- NEP-SBM-2009-08-02 (Small Business Management)
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- Luca BAGNOLI & Simone TOCCAFONDI, 2011. "Reporting frameworks for social enterprises: a European overview," CIRIEC Working Papers 1109, CIRIEC - Université de Liège.
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