Business models in social entrepreneurship: elements and value creation capabilities

Abstract

In the article the approaches to allocation of components of a business model are considered. Modern ideas about the business model are based on four main elements: what (the proposed value), who (target consumers), how (the mechanism of creating and proposing value to the consumer) and why (the mechanism for extracting and assigning income from the realization of value to the consumer). The strategic and operational models that reflect the nature of the decisions of the firms were allocated. Within the framework of the first model, the main elements such as a value proposition, consumer segments, key resources, key activities are derived. Within the framework of the second model, an operational model is displayed: logistic, marketing support of activity and sources of commercial effect. The principal scheme of the business model is developed through the prism of the concept of social entrepreneurship in the context of target groups. This approach combines the simplest model scheme consisting of 4 elements and an inclusive approach to social entrepreneurship, reflecting the role of target groups in the model. The authors noted that the peculiarity of designing business models in social entrepreneurship is that the basis of any model is the theory of social impact. This concept places the creation of a social effect the center of any organization and its reception is considered a value equal to the economically created value.