While many signs point toward the emergence of a fourth sector, a fully developed supportive ecosystem for fourth sector enterprises (legal structures, capital markets, technical assistance, etc.) is not yet in place. Consequently, “hybrid” entrepreneurs have little choice but to operate within the constraints of the three existing sectors. This often requires them to compromise their objectives, complicate their organizational structures, and invent new processes that distract their focus and deplete resources.

The plain fact is that the infrastructures that have come into being to support the three main sectors are not ideal for these hybrid enterprises. The track record of recent years has delivered a mixed message. On one hand, the private, public, and social sectors do have a certain amount of “give,” as evidenced by the considerable amount of organizational evolution that has taken place. 

 

However, their boundaries are pretty inelastic. As pioneering organizations in each sector implement new strategies and innovations in their attempt to meet the expectations of their stakeholders, they often find themselves pushing outside the boundaries of their respective sector. Often, they are unable to take these strategies as far as they would like because they are impeded by legal, capital, and other constraints. In the worst cases, they encounter significant obstacles and lose competitive advantage vis-a-vis their more traditional counterparts by straying too far from the standard rules of the road for their sector.

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What is required in the short term are multi-sector consortiums and over time supportive infrastructure developed specifically to meet the needs of fourth sector organizations.