10/26/2010 02:48 pm ET | Updated May 25, 2011

Does The Hybrid Model Work For Social Enterprises?

Social enterprises like GlobalGiving, World of Good, Pura Vida Coffee are struggling to prove the hybrid business model a success.

The model, The New York Times explains, blends business and nonprofits and emerged in the past decade with the intention of helping nonprofits overcome financial hurdles and expand their reach. But many of these ventures have collapsed as boundaries blur, and the need for profit overwhelms the noble aims of social enterprise.

Kevin Doyle Jones, of Good Capital investment firm, explained to The Times:

"This conjoined structure really has problems. Embedded in it is an inherent risk that individuals are profiting from donations that were made for public benefit."

Read more about how these companies are tweaking their models to stay afloat at The New York Times.

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