This chapter shows how a new type of cooperative – business and employment cooperative – is creating a new institutional arrangement. It presents the evolution of labour in France and how this affects the extant institutional arrangement. The chapter examines business and employment cooperatives and the method used to study them. Globalization and digitalization are some of the changes that destabilize labour and the institutional arrangements regulating it. The first business and employment cooperative (BEC) was created in 1995 in the French city of Lyon by a group of public and private for-profit and not-for-profit organizations. To tackle unemployment, policy makers have developed specific legal statuses and adapted tax rates to encourage people to set up their own business. From a new-institutional approach, BECs rely on three different institutional orders: the market, the state and the social economy. Important dimension of the creation of the new institutional arrangement is the cooperative principle of education, training and information.