In an article titled “In Search of the Hybrid Deal”, the researchers examine hybrids and the specific challenges they face with regard to legalities, financing, etc.
It also explores emerging solutions to these challenges for those seeking to combine the “value-creating potential” of for-profits and non-profits.
“Hybrid organisations will require innovations in legal status, professional training, and capital financing, so that they do not need to make constant trade-offs between social and economic goals,” the article said.
“The development of this ecosystem… will require the creation of new systems by elected officials, policymakers, social impact investors, educators and consumers.”
The researchers said they don’t believe all corporations are likely to become fully integrated hybrids.
“But for many entrepreneurs, integrated hybrid models offer a promising vehicle for the creation of both social and economic value,” they said.
“Hybrid organisations offer a bold, sustainable infusion of humanitarian principles into modern capitalism… The promise of hybrids is very real, but much work lies ahead.”
Larissa Robertson, who operates for-profit business SCO Recruitment, also heads up Spectrum Community Focus Ltd (SCF), which trades as Trim and Proper Property Services.
SCF is a not-for-profit that aims to alleviate poverty by providing employment and training opportunities for the socially disadvantaged, long-term unemployed and indigenous Australians.
The two organisations have a shared management team and a shared board, which, according to Robertson, enables SCF to access resources without having to pay for them.
For entrepreneurs looking to add a non-profit arm to their business, Robertson says clarity is key.
“You need to be really clear on what you’re doing and why you’re doing it, and make sure there is some sort of synergy between the two,” she says.
“For example, both of my businesses are focused on employment.”
