Hybrid-Diversified Business Models in Social Enterprises: Increase Revenues with a Social Mission

Hybrid organisations combine different elements from the for- profit and non-profit domains and typically face the challenge of pursuit a social mission while being financial sustainable. If value creation processes have been largely studied, less has been done on value capture. In fact, the co-achievement of value creation and value capture represents the success of a dual mission, and increase the revenues still remain a leading challenge in hybrids. The purpose of this study is to investigate how hybrid organizations increase value captured and remain focused on the social value proposition. In the unique research setting offered by Kenyan social enterprises, we demonstrated how facing difficulties in increasing revenues, social enterprise diversifies the revenue streams. We highlight the rise of three different hybrid-diversified business models, combing extensions on social value proposition and extensions in customer targets. In this way, social enterprises have been able to assure and increase the revenue streams from customers, while not losing the focus on creating and delivering social value for beneficiaries. Our work contributes to hybrid organizations, social entrepreneurship and sustainable business model literatures, while also opening venues for studies on hybrid-diversification. Limitations and future researches are presented as well.