ABSTRACT

Hybrid social enterprises design their business models to address particular social or environmental issues. They combine both profit and purpose in their operation, regardless of their funding sources or legal structures. This chapter considers the advantages of hybrid social enterprises, the challenges they face, and the structural options they can use to balance profit and purpose. These include single-entity legal structures such as low-profit limited liability company (L3C) and benefit corporation, and combination structures such as non-profit with a for-profit subsidiary and for-profit with a non-profit subsidiary. Clear definitions and examples are given for each type of structure. This chapter concludes with a new type of hybrid social enterprise pioneered by Scott Boyer. When he decided to address the global issue of undiagnosed and untreated epilepsy, he bypassed traditional structures for social enterprises and created what’s called a tandem hybrid social enterprise.