Abstract

The way in which social value is created through entrepreneurial ventures varies considerably and is therefore often difficult to compare. From an economic standpoint, value creation through social ventures requires financial resources and activities that lead to expenditures. The sustainability of social ventures differs depending on how these expenditures are financed. This article analyzes the various financing forms of social ventures by developing a general framework in which social business models can be analyzed and categorized. Using a gallery of real-life case studies, we illustrate how social business models can be ordered according to the degree to which they monetize social value creation and the level of generated market revenues in excess of expenditures.

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