Social entrepreneurship: legislative contributions

Abstract

This study evaluates whether the legal ecosystem related to the incorporation of cooperatives and IPSS, their governance models, the professionalization of their managers, and the transparency and access to funding favor or inhibit social entrepreneurship. The new rules on the incorporation of cooperatives and the provision of three models of management and supervision facilitate the development of social entrepreneurship. Investor members promote the diversification of cooperative funding sources. The Portuguese legal environment presents weaknesses in the professionalization of cooperative managers and in the transparency of IPSS. The “Portugal Inovação Social” Program, crowdfunding and social entrepreneurship funds are innovative ways of investing in social entrepreneurship. However, the regulatory framework of crowdfunding and social entrepreneurship funds suffers from some weaknesses that may inhibit the development of these instruments.