Hybrid Business Models

Wednesday January 07, 2009,

1 min Read

The hybrid business model (nonprofit with a profit-earning arm) is a central figure as a certain type of social enterprise, and is a topic of discussion by SocialEdge and books such as “The Power of Unreasonable People” or “How to Change the World: Social Entrepreneurs and the Power of New Ideas.” The Christian Science Monitor covers this movement and uses the example of Industree Crafts in Bangalore to show how there can be two branches of one organization:

Industree has split into two organizations: Industree Crafts Private Limited, a for-profit company that’s opening a new line of stores and products called Mother India; and Industree Crafts Foundation, a nonprofit group that accepts charitable grants to help it train more artisans.

The CSM article also discusses the advantages and challenges of such a model. Nonprofits which face a crunch for resources may be able to sustain themselves through their associated for-profit. At the same time, striking the balance between the social mission and generating profit is always a challenge.

Feel free to share information about other successful examples of hybrid models in India, such as Industree.