The growing appetite for purpose-driven businesses that prioritize stakeholders over shareholder primacy is constrained in Canada by a significant policy gap: only British Columbia (B.C.) has enacted Benefit Company legislation, leaving the rest of the country without a formal legal structure for enterprises pursuing both profit and public good—social and environmental. This absence undermines the legitimacy of impact-driven businesses and limits mechanisms for long-term accountability. While previous research has called for such legal structures, little has been done to evaluate the performance and implications of the model since its adoption in B.C. in 2020. This study addresses that gap.

The objective of this research is to examine the barriers, enablers, and early outcomes of the B.C. Benefit Company legislation as a foundation for expanding the framework provincially and federally across Canada. A policy scan across Canadian provinces, the U.S., and the U.K. was conducted to identify structural differences and legislative gaps. The study draws from 32 interviews with entrepreneurs, and experts across four provinces. Most interviewees cited the model’s limited awareness, legal uncertainty, provincial inertia, exacerbated by a lack of interprovincial coordination and political caution, as key barriers to broader adoption. Conversely, most participants identified legal protection for mission-driven businesses, increased market differentiation, and growing investor interest in social impact enterprises as critical enablers of the model’s success and potential.

Based on these insights, this study proposes a set of targeted policy interventions notably (1) the development of a national legislated Benefit Company framework to ensure coherence across jurisdictions; (2) the creation of legislated transition pathways for non-profits; and (3) the establishment of a distinct legal category within corporate law complemented by tailored tax incentives and governance reforms—to support the unique needs of for-benefit businesses alongside the need for a cultural and value led shift in the role and purpose of business in the economy.

This research matters to policymakers, legal reformers, social entrepreneurs, and impact investors who are shaping the future of Canada’s economy. Without a coherent legislative backbone, the growth of credible, accountable, purpose-led business will remain stalled. Canada must act now to formalize and scale the for-benefit model through coordinated, nationwide legal reform.

Keywords: For-Benefit Business, Hybrid Social Enterprise, Legislated Benefit Company, Impact Investment Canada, Policy Innovation, Business with Purpose