The model of social enterprise

Šarūnas Šalkauskas, Ignas Dzemyda


Social enterprise is an organization, which is carrying out social activities in order to support commercial activities. Three main dimensions of social business are the social mission of economic activity and innovation. The social mission of the organization’s choice includes social injustice, problem identification and solution. Innovation is the practical application of creativity, some adaptation to organizational goals, and in this case innovation is a social mission and the linking of economic activities, which form the synergistically effective combination. Economic activity is the organization’s commercial activities undertaken in order to be autonomous and to provide social services or benefits. Because of its multiple nature of social business, organizations can use the revenue sources available to different sectors and organizations, which can very flexibly respond to market changes and effectively carry out the social mission. The business model is a simplified view of reality, which shows the basic idea of the organization, value creation logic, demonstrating how the organization makes money and creates value. The business model can take place in a three-pronged organization, depending on the chosen level of analysis. It can exist as a mediator between strategy and operational level, to be the strategy as a means of detailing or as a means to transform the operational level of a long-term strategy.
There is a number of social business models highlighting different social aspects of business. However, they are either too conceptual and more like a general strategy, or a very detailed and essentially contradictory business model, focusing on the idea of simplifying the operation level in the simplified approach, reflecting the organization as it creates value, structures, which enable it to create value, and the environment, in which the organization operates.
The proposed social business model consists of three parts: the logic of value creation, internal architecture and external environment. The social value-creating business logic consists of three dimensions of social enterprise: social mission, innovation and economic activity. The internal architecture consists of a structure (organizational structure, legal status and ownership), resources (social, economic and human capital) and the value chain. The external environment components are related to the stakeholders: beneficiaries, customers and business partners.


social enterprise; innovation; business strategy; social capital

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"Business Systems & Economics" ISSN online 2029-8234