Corporate Legal Structure for Social Enterprise: The Case of Wales, United Kingdom

Sadaf Shariat*, Tayiba Hussain, Zahra Madjlesi Taklimi, Zahra Khamseh

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review


This chapter delves into the intricate relationship between legal structures and the performance of social enterprises (SE), a topic that remains inadequately explored despite the increasing global prominence of social enterprises in addressing socio-economic challenges. This study focuses on selected Welsh social enterprises, unveiling a profound and often overlooked connection between legal structures and the attainment of crucial objectives, such as securing financial resources and shaping business models.

Through the analysis of specific case studies, this research makes a notable discovery: Limited Liability Partnership and Company Limited by Shares structures emerge as standout performers, displaying superior financial resilience and sustainability. This research underscores the potential of LLP structures in fostering flexibility in both mission and profit, opening avenues for further exploration and innovation within SE. Equally significant is the challenge posed to prevailing stigmas associated with profit-maximizing approaches within the social enterprise sector, as the findings demonstrate the viability and sustainability of CLS structures.

The research advances the profound influence exerted by legal structures on the financial sustainability and performance of SE, providing invaluable guidance for stakeholders within the sector. It encourages the adoption of approaches which harmonize social and economic objectives, thereby enhancing the impact of SE. These findings not only contribute to the existing body of knowledge by shedding light on the impact of legal structures on the success of SE but also offer actionable insights for decision-makers. This will broaden understandings of the SE field in the region and bridge the gap between social enterprise literature and legal corporate scholarship.
Original languageEnglish
Title of host publicationCreating New Roles for a Sustainable Economy
Publication statusAccepted/In press - 11 Jul 2023

Publication series

NamePalgrave Studies in Governance, Leadership and Responsibility
PublisherPalgrave Macmillan
ISSN (Print)2662-1304
ISSN (Electronic)2662-1312


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