Penalty or Reward? The Role of Hybrid Identities in Social Enterprises’ Resource Acquisition

Abstract Resource acquisition is important for social enterprises’ resilience. Prior studies have explored social enterprises’ hybridity and resource acquisition outcomes, but have ignored funders’ heterogeneity. This paper examines how the identities of both social enterprises and financial resource providers are associated with financial resource acquisition. We specifically study how social enterprises’ social and financial identities are related to the acquisition of financial resources. Using an international entrepreneurship database (2014–2019), we find that social enterprises receive financial support from equity investors in a similar way as pure for-profits, while social enterprises receive less support from philanthropic donors, compared to pure nonprofits. We discuss the implications for social entrepreneurship research and practice.