Objective: The concept of social entrepreneurship, which combines commercial competence with social impact, has recently emerged as a major driving force in the effort to overcome intractable societal problems. This research takes a deep dive into a critical analysis of legal and regulatory frameworks and how they affect the field of social entrepreneurship. Knowing these frameworks is crucial because of their impact on social enterprise development and performance. However, there are a number of difficulties created by the interplay of social entrepreneurship and legal norms. These include things like generic legal frameworks, vague terminology, competing requirements, and insufficient resources. Creating conditions that allow social companies to thrive over the long term requires overcoming these obstacles.
 
 Method: Combining comparative legal research with stakeholder engagements and impact evaluations, the paper proposes an Adaptable Regulatory Legal Design Using Collaborative Innovation (ARLD-CI). The objective of this method is to create flexible legal frameworks that can accommodate the wide range of social enterprise business models while still meeting the requirements of existing laws. The research conducted proves that specialized legal frameworks (SLF) can increase creativity, funding possibilities, and social impact.
 
 Result: Potential changes in the law and regulation are modelled using hypothetical situations to see how they might affect social businesses, stakeholders, and the ecosystem as a whole. Using this ARLD-CI method, policymakers and stakeholders can better anticipate and prepare for the consequences of proposed regulatory changes when compared to SLF.
 
 Conclusion: Based on the Sensitivity Factor, Long-Term Sustainability, Social Entrepreneurship Performance Metrics, a simulation research investigation is conducted.
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