I have searched the web about the benefits of creating new entities, creating new entities vs Customizing existing entities etc. but I did not find anything which strongly supports the things and very specific where to use custom entity or where to create new entity in C#.
I have some points in my mind which I want to share with you and want your feedback and the supporting link for that.
Advantages of creating new entities are you can define your own class and use it as an entity. It allows you to avoid partial keyword in class type definitions. Not using partial keyword will help to compile your application faster by reducing its processing overhead. The other benefit of not using partial that we do not get more than one implementation of the same function by mistake, as we can avoid this using inheritance.
Secondly, sometimes modifying the thing is more typical than implementing it from scratch.