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When Tech Innovation Has a Social Mission

Palo Alto, Calif.

STEVE WOZNIAK built the original Apple I to share with his friends at the Homebrew Computer Club, but it was his business partner Steve Jobs who had the insight that there might be a market for such a contraption. Indeed, for decades, Silicon Valley has been defined by the tension between the technologist’s urge to share information and the industrialist’s incentive to profit.

Now a new style of “hybrid” technology organization is emerging that is trying to define a path between the nonprofit world and traditional for-profit ventures.

They’re often referred to as “social enterprises” because they pursue social missions instead of profits. But unlike most nonprofit groups, these organizations generate a sustainable source of revenue and do not rely on philanthropy. Earnings are retained and reinvested rather than being distributed to shareholders.

The new companies, like thousands of Silicon Valley start-ups before them, typically begin as small groups of intensely motivated people dedicated to the goal of building a product or service.

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