In spite of the growing interest of investors and donors in social entrepreneurship, funding for new, early-stage and growing ventures remains difficult to secure, leading some entrepreneurs to make decisions that may not align with the core mission of their organization.
Fundraising can have substantial implications on management decisions as well as organizational culture depending on the type of capital that is being sought and whether the organization is structured as a for-profit, nonprofit or hybrid.
To understand what these implications may be, let’s first have a look at the main types of capital – grants, debt and equity — that are currently available to social enterprises.