Social Business Model Innovation

A paper published in 2015 in Social Business together with Clemens Mast and Stephan A. Jansen asked what constitutes social business model innovation and what is different to convential business model innovation.

The analysis was based on more than 1,000 awards for social innovations and resulted in the identification of six different types of social business model innovation.

Type of Innovation Description
Opportunity Creation Creation of new entrepreneurial opportunities for the target group
Smart Distribution Development of distribution channels to reach customers
Ecosystem Engineering Combination of initiatives to change an existing ecosystem or create a new ecosystem
Cheap Sourcing Identification of underutilized resources to support the provision of the service
Smart Pricing Use of pricing innovations to facilitate the consumption of the services
Inclusive Production Inclusion of disabled persons or persons with special skills in the production process

Financing Conflicts

The idea of hybrid finance is that different capital providers (government agencies, donors, investors) give money to a social enterprise at the same time. There are a number of arguments which support this idea but it also leads to potential financing conflicts. One paper co-authored with Ann-Kristin Achleitner and Sarah Volk analyzes the different financing conflicts which can arise due to these financing structures.

Financing conflicts