Business Modelling for Social Enterprise Guest speaker – Assaf Weisz, Executive Director, Young Social Entrepreneurs of Canada (YSEC) Theory: What models exist for social enterprises? How do these models inform the structure and operations of the social venture? What are the key issues, tensions and considerations that make these models applicable to specific contexts? Practice: How can business model development be applied to the development of a social enterprise? http://www.socialentrepreneurship.ca/entr4800/

1. ENTR 4800: Social Entrepreneurship
Class 3: Business Modelling for Social
Enterprise
Monday, September 27, 2010
Instructors:
Norm Tasevski (norm@socialentrepreneurship.ca)
Karim Harji (karim@socialentrepreneurship.ca)
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Agenda
• Centre for Social Innovation
• What did we learn – Last Week?
• What are the components of a business model for
social enterprise?
• Talk – Assaf Weisz (ED, Young Social Entrepreneurs of
Canada)
• What did we learn – Today?
• Next week
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Last Week – What did we learn?
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6. Business Modelling for Social
Enterprise…
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A Caveat…
“Business “Business
Model” Plan”
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A Second Caveat…
When we business model for social enterprise, we
focus on the “business”, not the “social”…
But don’t worry, we will come back to the “social”
later…
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A Third Caveat…
We’ll be designing business models for…
…and…
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user networks!
franchising!
freemium! web ads!
etc…etc…etc…!
licensing!
retail! micro-finance!
subscription! loyalty!
open-source!
nonprofit (donation)!
solution shops!
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Some Definitions
• “A business model describes the rationale of how an organization
creates, delivers and captures value – economic, social, or other
forms of value”
Wikipedia
• “A description of the means and methods a firm employs to earn the
revenue projected in its plans. It views the business as a system and
answers the question, “How are we going to make money to survive
and grow?”
BusinessDictionary.com
• “A business model describes the specific way the business expects to
make money. While a business plan is on paper (lots of paper!) a
business model should be small enough to stay in the heads of the
owner and staff. If a business model is on paper, it should be one
page, and it would be more clearly shown as a diagram than as
words.”
AudienceDialogue.net
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What you need to care about is…
– Customer “Pain”
– Customer Segmentation
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Who are Grameen Bank’s customers?
What does their Empathy map look like?
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What you need to care about is…
– The “value” you are creating for customers (in terms of products/services), and
the “pain” you are alleviating
– Customer Utility
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Quick…
What is the last thing you bought?
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What is Grameen Bank’s value proposition?
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What you need to care about is…
– Customer “touch points”
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How does Grameen Bank “touch” its customers?
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What you need to care about is…
– Customer acquisition and retention
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What relationships has Grameen Bank made with its
customers?
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What you need to care about is…
– Cash!!! (specifically, how cash flows into the enterprise)
– Pricing models
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How does Grameen Bank bring in cash?
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What you need to care about is…
– Assets…
– …and how these assets create value
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What are Grameen Bank’s key assets?
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What you need to care about is…
– Actions (specifically, the actions you plan to take to generate value)
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What are Grameen Bank’s key activities?
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What you need to care about is…
– How you partner
– What you partner on
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31. What makes a good partnership?
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Common A
Vision! Commitment
to Invest in
the
Partnership!
Same Core
Values!
Discreet
Missions!
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Who does Grameen Bank partner with?
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What you need to care about is…
– Fixed costs, variable costs, economies of scale…
– …basically, all the stuff you learned in Finance class
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What does Grameen Bank’s cost structure look like (in
simple terms)?
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37. So…how
does your
Business
Model for
Grameen
Bank
compare???
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&!
Le nding g!
tin nal!
C ollec Perso
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rn-! $$!
Gove Micro ! !
ment
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s
eneur
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-Branche !
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-Bran al! B ranch
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-Cap
le!
- Peop st!
ital I ntere
-Cap ! !
s Rates
cost
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Tip…
• Be a Business Model “Alchemist” – You need to go
through the business model process many times in
order to figure out which model best fits
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40. Break
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Assaf Weisz…
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What did we learn?
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Next Week
• Hedvig Alexander – Have Questions Ready!!
• Deliverable: The “revenue” side of your business
model (and your motivations, mission, vision and
values)
• Readings
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Notes
– The business model template and process presented
herein is based in on Alexander Osterwalder’s Business
Model Canvas (www.businessmodelgeneration.com)
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