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Peterson Speaker Series – Hybrid Organizations | December 3, 2015

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Social enterprises are organizations that have a dual goal of generating profit and creating positive social change.

They strive to address social and environmental issues while also generating revenue to sustain and expand their operations. This unique model makes them a hybrid organization, as they combine aspects of both traditional for-profit businesses and non-profit organizations. The way in which social enterprises function as a hybrid organization is what sets them apart from other types of businesses.

One key characteristic of social enterprises is that they use business strategies to create social value. They often have a clear social or environmental mission at the core of their operations and use innovative business models to achieve it. For example, a social enterprise may aim to reduce unemployment in a local community by training and employing disadvantaged individuals in a sustainable business venture. In this way, they are not solely focused on making profits for their stakeholders, but rather using their profits as a means of creating positive change in society.

Another way in which social enterprises function as a hybrid organization is through their funding and revenue streams. They often rely on a combination of traditional business methods, such as selling products or services, and non-profit methods, such as donations and grants. This allows them to have a steady income while also being able to reinvest their profits back into their social mission. This flexibility allows social enterprises to operate with a long-term vision and not be solely driven by short-term financial gains.

Moreover, social enterprises also have a hybrid management structure. They typically have a leadership team that combines business expertise with knowledge and experience in the social or environmental issue they are addressing. This helps to ensure that both the financial and social aspects of the organization are given equal importance. Additionally, social enterprises often involve the community they are serving in decision-making processes, which creates a sense of ownership and accountability for their mission.

One of the primary benefits of this hybrid model is that it helps to create sustainable solutions to social and environmental problems. By operating as a business, social enterprises are able to generate their own income and not rely solely on external funding, making them less susceptible to changes in funding or donations. This allows them to continue their efforts to address societal issues, even during economic downturns.

Furthermore, as socially responsible businesses, social enterprises can also attract a new generation of customers, investors, and employees who are looking for more than just financial returns. Millennials and Gen Z generations, in particular, are increasingly drawn to companies that have a positive impact on society and the environment. By choosing to support social enterprises, they can feel like they are not just making a purchase, but also contributing to a larger cause.

In conclusion, social enterprises function as a hybrid organization by combining the business strategies of for-profit companies with the social mission of non-profit organizations. This model allows them to tackle social and environmental issues in a sustainable and financially viable manner. With their unique approach, social enterprises have the potential to create lasting positive change and inspire others to do the same. As consumers, investors, and business leaders, we should all support and promote the growth of social enterprises in order to create a better and more equitable world for everyone.