The Funding Gap

Source: Michael Chertok, Jeff Hamaoui, Elliot Jamison. The Fund Gap, (Spring, 2008) Standford Social Innovation Review. (44-51)


Chertok M., Hamoui J., Jamison E. (2007). The Funding Gap. Stanford Social Innovation Review. 43-51. This paper discusses the challenges that social enterprises face in trying to obtain funding and attract investors. The notion of hybrid enterprises, that is, an enterprises that consist of two distinct but related organizations (one for-profit and one nonprofit), and the advantages and disadvantages of this structure are examined, along with examples of how a social or hybrid enterprise can raise money. This paper also discusses the distinction between direct investors and intermediary investors and the various roles these people and institutions play in raising capital for social enterprises.

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