A business structure blending aspects of both for-profit and non-profit models presents a viable definition. Such entities intentionally combine commercial activities with a social or environmental mission. Profit generation is not the sole objective; rather, it serves as a means to further a broader purpose. A social enterprise selling fair-trade goods and reinvesting profits into community development exemplifies this arrangement.
This organizational form offers distinct advantages. It can attract diverse funding streams, including investment capital and philanthropic grants. Furthermore, it fosters innovation by encouraging the application of business principles to address social challenges. Historically, these structures have emerged as a response to perceived limitations of traditional for-profit and non-profit models in tackling complex societal issues.