Fredrik Björk, Malmö University

Where should the focus be?

The Social Entrepreneur (US/Harvard BS) The Social Innovation (US/Stanford – EU

commission) The Social Enterprise (EU – EMES/European

NGOs) Business models and business plans in

general related to ’Social Entrepreneur’ perspectives

But today increasing interest in developing sustainable social enterprises/social innovation

Social Enterpreneurship and social innovation – a developing field

Bornstein & Davis (2010)Three generations: The Heroes Professionalization of management Global grassroot movement –

facilitation/informal networks (building platforms for collaboration)

Business models for SE

PCDO (Austin et al) vs Brooks: Similarities and differences?

(PCDO actually by Sahlman (1996); Austin et al uses it to compare SE to commercial E)

PCDO Framework (Austin et al)

People

Context

Deal

Opportunity

• People – internal/external

contributors: skills/expertise– ”The whole person”

• Context– Elemements outside of

control; structure/environment

• Deals– Transactions/value creation

• Opportunities – Possibility of making a

change (investment for future return)

”Dynamic fit” between the dimensions above

Brooks:Business model components for SE Core mission

(activities/values and goals/innovation) Strategic resources

(Unique competences/resource acquisition)

Partnership/network(Donors/volunteers/collaborators etc.)

Service interface(connection with beneficiaries – target clientele/community/staff)

Business planning

What has business plans to do with entrepreneurship?

What about: Leadership Entrepreneurship ManagementDifferences – and similarities?

Business planning Benson Honig: Why do

entrepreneurs make business plans?

Isomorphic pressure! Does business plans lead to better

chance of survival? No Increased profitability? No Other factors much more

important: Business network, previous knowledge of customers etc.

Honig: Business planning ”New organizations plan because they are

reacting to how they are expected to plan, because they imitate other successful organizations in their fields that plan, or because they are told to plan”

”Writing plans may hamper the organization’s ability to act on new opportunities” (planning as a way to avoid uncertainty)

Conclusion – A business plans is no guarantee for success. Questions about how, why and what a business plan should be!

Brooks – BP components Summary Description of the enterprise

(Idea, mission statement, innovations etc.) The Team

(Management, board, advisors etc.) Market & Industry

(expected position and market share) Marketing and fundraising

(Strategies) Financial plan

(Cash flow, investments) Goals and objectives; timeline

(Success criteria etc.) Risk assesment

(Realistic) Supporting documents

Brooks

External and internal audience Getting personal Anticipate risk and problems Dedication Where is the enterprise right now? Why is this enterprise (this team)

uniquely suitable?

Osterwalder

” The Business Model Canvas works best when printed out on a large surface so groups of people can jointly start sketching and discussing business model elements with Post-it notes or board markers.

It is a hands-on tool that fosters understanding, discussion, creativity, and analysis.”

Business models vs business planning tools BM tools – could be used as an

analytical framework to understand social enterprises

BP tools – could be used to develop, set up or communicate a social enterprise

Suggested readings Arthur Brooks: Social Entrepreneurship: A

Modern Approach to Social Value Creation (2008)

Davis & Bornstein: Social Entrepreneurship. What Everyone Needs to Know (2010)

Benson Honig & Tomas Karlsson: ”Institutional forces and the written business plan”, Journal of Management 30: 29, 2004

Alex Osterwalder:Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers (2010)