The authors argue that uderstanding how social enterprises function at the sectoral level, and within which niches hybrid business models best function to complement state and mainstream business activities, is key to prioritising government and donor support. Regulation, subsidies and business support should not be indiscriminately provided to seek to achieve social ends. Understanding the type of organisation best placed to provide goods and services within a given context, at a given point in time, is key to appropriate resource allocation. Understanding the niches where social enterprise adds value should be the starting point of all support to social enterprise by government and donors.