Until 2016, the only B Entity business model for a startup was a Benefit Corporation. Certification as a B Corp required at least 12 months of operations, preferably more. Benefit Corporations are, however, just that … corporations.
There is a reason why 40,000 companies are engaged in the B Impact Assessment, but less than 2,000 are certified B Corps: The certification is not easy.
B Corporations and Benefit Organizations are businesses that make a public commitment to a positive impact on society and the environment while generating shareholder returns. These businesses are held to higher standards of accountability and transparency. It is this accountability and transparency that help investors and customers see below the surface and beyond appearances into the company’s business practices.
B Entities are a relatively new business model. They represent a paradigm shift in for-profit business models, filling the expansive gap between nonprofit corporations and the traditional, profit-maximizing business. They’re really known as B Corporations or Benefit Corporations, but since certain of them can be limited liability companies, limited partnerships, sole proprietorships or corporations, I’ve taken to calling them B Entities.