Questioning the Viability of the Hybrid Social Enterprise Model

Yesterday’s New York Times reported the not-terribly-surprising news that many hybrid social ventures are failing.  The article quotes the prominent social enterprise lawyer, Allen Bromberger, as claiming that the hybrid structures “allow social enterprises to tap conventional investors interested in making profits while continuing to pursue their social missions.”  But the balance of the article tells the story of several prominent social enterprises that failed to achieve social or financial returns.  “Like Dr. Doolittle’s pushmi-pullu, the animal had trouble moving because its two heads could not agree on a single direction . . ..”   Adding injury to insult, these failed social enterprises have been very difficult to wind down because of their hybrid structures.  One wonders whether the Fourth Sector’s overall track record would be better, and the Times would be writing hagiographies, if the domestic and global economy were stronger.

TAK