The Hybrid Value Chain™ is a framework that enables the design, testing and implementation of innovative business models to serve low-income citizens in profitable ways. By partnering with citizen sector organizations "along the value chain", businesses can enter these markets more efficiently and provide a more integrated solution to low-income clients. On the other hand, social entrepreneurs and their organizations can develop and test new ways to significantly increase their social impact by leveraging the core competencies of businesses, while creating a sustainable source of revenue for their organizations.

The Hybrid Value Chain™ draws on each sector's relative strengths that may include technology, management systems, production capacity and logistics for businesses — and a deep knowledge of low-income consumers' needs, formal or informal local networks in underserved rural areas/urban slums, experience in introducing social change within low-income communities, and the ability to mobilize local players to provide a comprehensive solution with maximum social impact for citizen sector organizations. In the last three decades, millions of civil society organizations have emerged to create positive social change and social entrepreneurs have been at the forefront of developing innovations to serve low-income citizens. Depending on their skills and experiences, social entrepreneurs may be best suited to co-design a product or service, assume responsibility of sales and marketing, enable distribution or coordinate the different components required for a successful solution.

In sum, Hybrid Value Chain™ partnerships are characterized by the following:

• Outcome to benefit low-income communities in developing countries;
• Participation of innovative citizen organizations and private companies that have identified complementary skills and assets, with all partners being on equal footing;
• Objectives and design integrated into a company's core business;
• Operational roles for both organizations where economic value is created;
• A start-up phase based on pilot projects that have the potential to scale up to serve large markets of unserved low-income citizens.