The Business Model of Social Entrepreneurship in Indonesia
Abstract: The purpose of this
study is to develop a conceptual setting in which the business models of social
enterprises can be analyzed through value proposition, value creation and value
capture. This study employed a method of qualitativeresearch through in-depth
interviews of 30 social entrepreneurships in Jakarta, Yogyakarta, Bandung and
Bali. The result of the study showed that, in terms of the value proposition in
business models of entrepreneurship, all organizations areestablished in
response to discriminations suffered by marginal communities. Regarding the
aspect of value capture, it seems to appear through a series of activities such
as conducting humanity-based programs, capacity building and holding
educationand training on the environment.
Value creation is found in cases where the more benefits the community
gains from program implementation, the more successful and sustainable the
social entrepreneurship will be. This research proposes a new typeof business
model that aims to categorize and explain business model innovations for
sustainability, provides mechanisms to assist the innovation process for
embedding sustainability in business models and defines a clear agenda for
business modelsfor sustainability. Based on the empiric data, this study
successfully identified four types of social entrepreneur models in Indonesia
which are based on the mapping results found in all of the organizations aiming
to resolve social, economic, andenvironmental issues in Indonesia. This study
successfully identified four types of business models: Mixed-based Model,
Sharia-based Model, Volunteerism-based Model, and Cooperation-based Model.
Author: Bevaola Kusumasari
Journal Code: jpadministrasinegaragg150056
