Business Models and Business Model Innovation in Social Entrepreneurship

Sammanfattning: Social entrepreneurship experienced a significant rise in the past two decades. Yet, research on how companies in social entrepreneurship organize their business model is still rare. Therefore, this thesis aims to investigate how these companies combine social and economic value creation. More precisely, it is analysed how they design, organize and innovate their business model. First, a content analysis is applied to examine and verify the social business model taxonomy identified in the literature with evidence from 126 companies is Germany and South Africa. Second, based on 7 cases social business model innovations are identified that allow these companies to generate income while following their social mission and increasing their social impact. It is argued that the established business model taxonomy is not just a theoretical framework, but can be applied to firms engaging in social entrepreneurship in Germany and South Africa. Hereby, four distinct social business model types offer explanation for different mechanisms and logics how firms engaging in social entrepreneurship combine social and economic value creation. Moreover, it is argued that the identified social business model innovations are key facilitators that allow firms to spread their social mission in a more vital and sustainable manner.