Too many young people are rebelling themselves against our capitalist system that seems to only make rich people richer. The assumption of independence between profits and nonprofits endeavors are gradually fading away. Consequently, we have seen the rise of hybrid social venture; organizations that combines the social welfare logic of a nonprofit and the commercial logic of a for-profit business states Michael Blanding (e.g: L3C or Low-profit limited liability company in the United States, Community interest company in UK, and Flexible purpose corporation in California). Hybrid organizations give an avenue to solving enduring social conundrums in manners that harness the strengths of both for-profit and nonprofit sectors. It pushes us not only to focus on commercial revenue, but also to figure out ways to add social value while maximizing on profits. Unfortunately, hybrid organizations still face many challenges ranging from legal structure to financing methods. Due an outdated legal framework, the access to capital is limited and they tend not to benefit from our tax code. Furthermore, traditional methods of funding used by venture capital industry are not suited to social venture in general.
In reality, the development of this ecosystem will not be the work of any heroic individual or organization; rather, it will require the creation of new systems by elected officials, policy makers, social impact investors, educators and consumers who lift up generation of hybrid organization their managers” states Julie Battilana, Matthew Lee, John Walker, & Cheryl Dorsey.
Supporting this new system will add value, incentivize people to think and act innovatively and finally, help organizations become more self-sustaining and less dependent on donors/grants.
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