Center for Sustainable Enterprise and Regional Competitiveness

College of Management

Hybrid Organizations

Hybrid organizations have been called Fourth Sector, For-Benefit, Mission Driven, Benefit Corporations, and Social Enterprises. We use the term hybrid organizations because it is emerging as a dominant term and reflects their tendency to develop business models that are a hybrid of what is traditionally considered for-profit and nonprofit (and they can be registered as either). Hybrid organizations generate income in ways that are often consistent with a for-profit model, but they abide by substantial social and environmental missions that have historically been associated with nonprofit models. Hybrid business models have been termed “sustainability-driven,” because they are designed with the specific intention of alleviating a particular set of sustainability issues while remaining economically viable.