Social entrepreneurship business models in the case of Georgian social enterprises (ბიზნესმოდელების ანალიზი საქართველოს სოციალური საწარმოების მაგალითზე)

Abstract

In modern business administration theories, the term “business model” is widely used to describe the process of value creation by organizations (Guo, Zhao and Tang 2013), (Amit and Zott 2001), (Chesbrough and Rosenbloom 2002), and describing the means of generating income (Stewart and Zhao 2000). (Drucker 1954). Despite the proliferation of research in the field of social entrepreneurship, which describes the concepts of business models, it should be noted that in most cases, the term “business model” is referred to simply as “fashionable definition” (Sommerrock 2010) and is used in only a few papers. (Mair and Schoen 2007), (Seelos and Mair 2007), (Yunus 2010). It should be noted that these studies are fragmentary and almost non-existent in the Georgian context. The concept of a business model used in the article is used to discuss individual cases, to identify the features and characteristics of successful models of social entrepreneurship, and to assess the quality of the unit of analysis. The article presents an example of four successful organizations working in the field of social entrepreneurship. In order to reveal the peculiarities of the formation of the basic models of social entrepreneurship, the research strategy uses a case-method. The following theoretical analyzes are discussed in the study: a) Successful social enterprises not only determine their place in the value chain in a defined sector, but also proactively form their own network of pricing with companies that share their social vision; b) Successful social entrepreneurs accurately identify the necessary resources and, accordingly, formulate a resource strategy, which is introduced in the earliest stages of the business model.