In June 2017, a journalist was preparing a major news story about Lumni Inc. (Lumni), a company that he wanted to profile in the next issue of his Mexico City-based magazine. Lumni's mission was essentially a social one: to improve the conditions, access, and quality of higher education for young students, especially in Latin America. However, although its mission was originally non-profit, Lumni was not considered a non-governmental organization since it worked with a financially sustainable model and did not depend on donations or government funding. As the journalist investigated this business model, he learned that some experts referred to it as a hybrid business model. Although he had been gathering research on Lumni for some months, he still was unsure whether his report should promote hybrid business models as viable alternatives to traditional business models.

A hybrid business model incorporates the social responsibility interests of a non-profit organization with the economic objectives of a for-profit company. This note explains the fundamental organizational activities that drive a hybrid business model and provides examples of successful hybrid business models currently in operation. This note can be used as a companion document to Lumni Inc.: Improving Society in a Sustainable Way, product no. 9B18M011