EFFECTIVE BUSINESS MODELS OF SOCIAL ENTREPRENEURSHIP: A MACROECONOMIC VIEW

  • Liudmyla Kot Taras Shevchenko National University of Kyiv
Keywords: macroeconomics, national economy, social enterprise, social entrepreneurship, business model, value network, consumer interface, strategic resources, socio-economic basis

Abstract

The article examines the research of typical business models used by successful global social enterprises in order to develop recommendations for improving the sustainability of domestic companies of the appropriate orientation. It is stated that the question remains relevant about how exactly in the course of the implementation of social entrepreneurship, the combination of social and economic values is implemented, and especially what role the formation of a special social network and the implementation of a resource provision strategy play in this. For the purpose of the study, several "classic" cases from different countries with diverse social and economic environments were selected to formulate common features of their business models. A macroeconomic analysis of the companies identified for the study was carried out, namely: the socio-economic basis of their activities was studied and a component analysis of the corresponding business models was carried out. It is noted that in the case of the conducted research, the business model is a business concept that forms the basis of practice. Among the main components of the relevant business models are: Value network (controlled positions or zones of predominant influence within the value Network); Strategic Resources (needs for Strategic Resources included in the business model); consumer interface (integration of Target groups). It is proved that the studied examples of successful social entrepreneurship differ significantly from each other in terms of social mission, organizational structure, as well as the economic and social environment in which they originated, but at the same time, there is a significant kinship between them. It is argued that all of them produce a social good: for Grameen, it is the elimination of poverty by rural women in Bangladesh; for Секем, it is the cultivation of natural products without the use of chemical fertilizers, as well as the promotion of cultural and social life in Egypt; for ICC, it is the creation of jobs and economic development opportunities for people who previously did not have them. It is proved that these companies owe their success to a special combination of social and economic efficiency. It is determined that the activities of all three companies are based on the division of common values of the "community", which were used for creating a supporting social network (value network); acquiring strategic resources; managing interaction with consumers ("consumer interface"). It is concluded that since the key difference between social entrepreneurship is the creation of social value, which within the business model will be primary and will determine the strategic goal of the business, it can be said that social value can be created in any of the components of the business model, and the creation of social value, according to the analysis of empirical examples, usually requires specific changes in at least two blocks of the corresponding model.

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Published
2022-07-01
How to Cite
Kot, L. (2022). EFFECTIVE BUSINESS MODELS OF SOCIAL ENTREPRENEURSHIP: A MACROECONOMIC VIEW. Scientific Bulletin of Poltava University of Economics and Trade. A Series of “Economic Sciences”, (1 (105), 148-159. https://doi.org/10.37734/2409-6873-2022-1-19