ABSTRACT

The major challenge facing social enterprises is finding the funding to carry out their mission. This chapter looks at different sources of capital for tandem hybrid social enterprises and touches on the pros and cons of each. For the business entity in the tandem hybrid, the funding options include: personal funds, borrowing from family and friends, bank loans, angel investors, impact investment firms, venture capitalists, private equity firms, crowdfunding, pitch competitions, and fellowships. Next, the chapter considers typical funding sources for the non-profit entity in the tandem hybrid, which include donations, grants, and philanthropic investments. Scott Boyer shares how he tapped into the various sources of capital to fund the business and non-profit entities in his tandem hybrid social enterprise. He offers practical advice to social entrepreneurs on what options to pursue, and more important, what funding sources to avoid.