The term “hybrid business” may refer to an enterprise which does not only make use of traditional methods of distribution, but also makes use of internet technology in order to easily expand its market and make the product or service more accessible.
One of the benefits that hybrid businesses offer their clients is increased convenience for the completion of transactions. The customer is no longer required to travel a long distance or go through a tedious process in order to make payments, because such businesses have already set up an online payment system. This benefits the customer while also allowing the business to save money on staffing and other related expenses. At the same time, the inflow of cash becomes more immediate.
Hybrid businesses have flourished very quickly with the advancements in technology over the past couple of decades. Today, e-commerce, which brings the marketplace to people’s homes, is an important part of the operations of many large businesses. As such, more and more traditional enterprises are becoming hybrid businesses in this sense. Furthermore, advancements made have also made online transactions more secure, thus increasing consumer confidence and boosting commercial activity online. Hybrid businesses are therefore able to expand the scope of their businesses and expand more quickly than ever into international markets.
On the other hand, the term “hybrid” can also be used to describe businesses which are geared towards socially-beneficial goals as well as the generation of profit. While it may initially seem to be difficult to combine these two objectives, some enterprises, such as microfinance agencies, are able to do this.
Reviewed by Ryan Hammill