Hybrid organizations combine elements of well-established, institutionalized structures and thereby move away from conventional organizational practices. The present research reveals that when hybrid organizations develop their operations, they are faced with challenges that are unique and unexplored and which are often grounded in their hybrid structure. Social business hybrids were chosen as an ideal setting for the study of organizational hybridity based on their unique organizational structure, which is characterized by a mix of commercial for-profit and charity logic.