Hybrid Value Chains - now more than ever

This week's reading on "the Funding GAP" by Michael Chertok, Jeff Hamaoui, and Eliot Jamison provided a compelling case for the creation of hybrid enterprises and the complexities as well as the risks associated with establishing a for-profit and not-for-profit organizations within one coherent structure.

While disadvantages such as time, money, and legal constraints exist, it seems that this structure is needed now more than ever, particularly in developing communities. Hybrid value-chains that stem from these ventures could significantly lead to poverty reduction, improve local technologies, allow for healthcare provision, and equip low-income families to sustain their livelihoods and improve their own quality of life. I don't think hybrid value chains are "the" solution but certainly an important piece of the foundation in mitigating the societal issues that have been subject to temporary solutions and have consequently existed for decades.

Ashoka, a prominent global organization initiated in India in 1981, invests in social entrepreneurs, promotes networking among them, and creates access to social financing as well as other infrastructure to foster "a global network of changemakers," by bridging the public and private sectors. I think the organization has an interesting value-chain model that explains the gains and core assets of business partners and citizen oriented organizations. While the atmosphere has become increasingly competitive, there are advantages for both sides. Companies can enter new markets and citizen oriented organization can pull in revenues and expand in capacity and scope.

While there may be barriers to hybrid formation and an potential loss in the short-run, the long-term impacts for growth are promising.