FUNDING MODELS FOR SOCIAL ENTERPRISES: EXPLORING PHILANTHROPY, CSR, AND HYBRID APPROACHES

Abstract

Social enterprises play a pivotal role in addressing societal challenges by combining business practices with social impact goals. The sustainability and scalability of these organizations are heavily influenced by their funding models. This study explores three prominent funding approaches for social enterprises: philanthropy, corporate social responsibility (CSR), and hybrid models. Philanthropy, as a traditional funding source, offers grants and donations that enable social enterprises to focus on mission-driven activities. CSR funding, driven by corporate interest in social and environmental responsibility, aligns enterprise goals with business strategies to achieve mutual benefits. Hybrid funding models integrate philanthropic and commercial approaches, leveraging diverse income streams to enhance resilience and adaptability. Through a comparative analysis, this paper examines the benefits and limitations of these models, emphasizing the importance of tailoring funding strategies to the unique needs of social enterprises. Insights from case studies underscore the potential of innovative funding frameworks to foster long-term impact and financial sustainability in the evolving landscape of social entrepreneurship. The findings provide a comprehensive understanding of how different funding models can drive the growth and effectiveness of social enterprises, offering actionable recommendations for practitioners and policymakers.