Doing good while making profits: A typology of business models for social ventures
Open access
Date
2024Type
- Journal Article
ETH Bibliography
yes
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Abstract
Research SummaryBuilding on business model research and the social entrepreneurship literature, we conceptually develop a set of business model choices for social ventures. These choices specify the scope of venture beneficiaries, the extent that customers and beneficiaries overlap, and how social meaning is attached to the venture's value proposition. Concurrent configurations of these choices give rise to four types of social business models: (1) Social Stimulators, (2) Social Providers, (3) Social Producers, and (4) Social Intermediaries. We illustrate this typology using data from seven social ventures and formulate propositions about the implications these business model choices have for a venture's value creation and value capture potential. We then discuss contributions to the literature on social ventures and social entrepreneurship, and the literature on business models.Managerial SummaryIn this article, we propose a framework outlining key business model choices for social ventures. These choices include the scope of target beneficiaries of the venture, the degree of overlap between customers and beneficiaries, and how the venture communicates its social mission through its value proposition. By combining these choices in different ways, we identify four distinct types of social business models which we call Social Stimulators, Social Providers, Social Producers, and Social Intermediaries. To bring this framework to life, we have examined data from seven real-world social ventures, offering concrete examples to illustrate each type. For each of these four types of social business models, we have also formulated propositions about how the business model choices impact a venture's value creation and value capture potential. Show more
Permanent link
https://doi.org/10.3929/ethz-b-000672350Publication status
publishedExternal links
Journal / series
Strategic Entrepreneurship JournalPublisher
WileySubject
business models; conceptual; configurational perspective; social ventures; typologyMore
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ETH Bibliography
yes
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