Entrepreneurship: Social Business Model Canvas – Create an Impact

social business model

A Social Business Model Canvas or SBMC is different from a regular BMC in the sense that the focus is on the impact that the social business is creating rather than earning profits. The SBMC is structured into four segments: market; social value proposition; implementation and finance.

Social Business Model Structure

1. Market

The market is further broken down into three segments. These include:

  • Customer Segments

You need to determine how you will work with the people that buy your product or service. And also identify which segments of people will benefit from the sales of your product or service. The audience for which your business model will try to meet the needs of is the most basic question for which you need to have clarity. There will be direct beneficiaries of your social business as well as indirect beneficiaries who may receive an unintended benefit. Externalities exist and you have to try to maximize the positive externalities while minimizing the negative externalities.

  • Competitors

You need to complete an analysis of the other key players in you space and define what sets you apart from them. This will allow you to identify the major problems that your social business model will face and work towards minimizing them by determining their causes. This will also allow you to spot any unexplored opportunities that your social business model could capitalize on.

  • Macro-economic Environment

You need to study and explore the changes that are taking place that affect your respective market right now and in the future. This includes economic changes, social changes, and technological changes. Your social business model may also be subject to seasonal, environmental, and legal constraints. These are all things you have to question before moving forward.

2. Social Value Proposition

social business model

The social value proposition is the difference you are making. This also includes the social impact measures that you will use to measure your achievement. But first you need to specify what value exactly you are offering. Whether you are offering products or service; whether your business model will work by products or be streamed; whether you will offer intangible products; whether the services will be produced directly at the user’s place, or whether your product or service will be primary or secondary.

3. Implementation

volunteers needed

Implementation is further broken down into three segments. These include:

  • Delivery

You need to specify the activities you engage in and which resources your business owns. Delivery is the bridge between the future products and services generated by your business model and your different target segments. You will need to determine how the benefit you are offering will arrive in the hands of your users, and if there is a way for them to return your products.

  • Partners

Your partners include all the entities that help you to deliver your activities. Because you will most likely not own all the resources required to carryout business, you need to make sure you have reliable partners. Volunteers can be very beneficial and cost effective. If there is a scope for integrating volunteers, then that should be utilized.

  • Sales and Marketing

You need to have a clear and strong sales and marketing plan, as well as an idea of how you plan on reaching your customers. How users will learn about your business model products and services is very important and you need to use appropriate mediums to make sure information is conveyed to your users.

4. Finance


Finance is further broken down into three segments. These include:

  • Cost of delivery
  • Revenue
  • Surplus

Once you have determined how many financial resources you need for investment and funding working capital, you will need to figure out how you will obtain those financial resources. You may obtain them through revenue, grants, investors, sponsors, or other donors.

The last question you need to answer is how you will know if your social business model has been successful. This includes determining a way to measure immediate results as well as the long term impact created by your social business model.



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