ABSTRACT
This chapter provides direction for social entrepreneurs in defining the specific capital needs of their ventures with the goal of achieving financial sustainability while balancing social and economic considerations. It presents investment selection criteria and due diligence processes. By considering investors as partners in the creation of meaningful impact rather than just funding sources, social entrepreneurs can build more scalable and effective enterprises. Compared to more traditional capital seekers, social entrepreneurs face an everexpanding set of funding options but must also address some distinct challenges. Crowdfunding often takes the shape of a hybrid decision form in which decision-making is supported by extrinsic cues germane to traditional investment as well as intrinsic cues germane to prosocially motivated acts of helping others to create a social impact or for the pure joy of giving. The chapter ends with a case study that outlines some challenges to achieving financial sustainability.
