Idea in Brief
A new type of entity is appearing in many mature economies: the “for-benefit” enterprise, so called because it operates like a traditional business in many ways, but is founded primarily to provide social benefits rather than to maximize financial returns.
For-benefits would be more plentiful
if socially minded entrepreneurs were more aware of the consequences of architectural decisions they make at the start, and if they had access to a more supportive ecosystem.
With new legislation
granting legal status to for-benefits, those barriers are falling. Specialized law and accounting practices and other resources are focusing on the challenges of blending financial and social value. Indeed, for-benefit enterprises are emerging as a whole new sector of the economy—one powerful enough to change the course of capitalism.
We are in a new era. For-profit businesses are tackling social and environmental issues, nonprofits are developing sustainable business models, and governments are forging market-based approaches to service delivery. Out of this blurring of traditional boundaries, a different model of enterprise is emerging, driven by entrepreneurs who are motivated by social aims.