Highlighted in Forbes, at the New York Stock Exchange, at the White House for economic impact, and in the Business & Management Review for socially responsible innovation in financial technology, SourceFunding.org is at the forefront of a new era of hybrid social enterprises: organizations that pursue social missions that are fueled by market-based business models, integrating social and economic objectives.
"The development strategies and plans evolving from our previous work with the Community Benchmark Program in 2015 helped build a strong foundation for the successful national expansion of our hybrid social enterprise business model," said SourceFunding.org CEO W. Michael Short (SU '10 & SU Engagement Scholar '11). "We're grateful for the opportunity to build on that successful collaboration."
As noted by Huffington Post, in an article highlighting the involvement of SU in the early development of SourceFunding.org with social entrepreneur W. Michael Short, the number of social enterprises in the U.S. has more than doubled since 2006.
“The social innovators leading the hybrid movement have advanced efforts to increase accountability of both for-profit and nonprofit social enterprises by combining the best attributes of each,” writes Chris Miller, CEO of the Mission Center L3C Incubator, in the Stanford Social Innovation Review. “It seems safe to assume that the vanguards of the millennial generation and hybrid movement, respectively, will continue to seek more authentic, transparent, and accountable mechanisms for changing the world.”
Specifically, university, foundation, and investor-backed SourceFunding.org expanded nationally in the U.S. to provide a trusted, transparent, & low-cost alternative to the growing number of predatory online small business lenders that are increasingly using deceptive tactics, misleading fees, and hidden costs to take advantage of entrepreneurs nationwide.
As noted by the U.S. Treasury Department, big banks cut down on their small business lending following the 2008 financial crisis & online FinTech firms stepped in to fill the unmet demand for credit. As a result, the industry boomed and is on track to lend $90 billion a year by 2020. However, according to Opportunity Fund, FinTech loans come at a substantial price with annual percentage interest rates (APRs) reaching from 94% to as high as 358%.