"The Social Business Era"
It is no coincidence that social businesses, also known as social enterprises, have emerged and developed in the Networked Society. Unlike traditional businesses, these companies are driven by a social cause, putting social impact before profit to create a sustainable business model for the greater good. They are also re-thinking the way corporations work with the community. In this report, The Social Business Era, Ericsson consider the role of information and communications technology (ICT) in the emergence of social businesses, and how it enables social entrepreneurs to address global social and environmental challenges. The possible impact on traditional for-profit corporations and business models is also explored. READ MORE INFORMATION AND DQWNLOAD FULL REPORT VIA ERICSSON.COM . . .
What is social business?
Social business bridges the gap between the altruism of non-profit organizations and the financial agendas of for-profit companies. Social entrepreneurs’ primary intent is to create “good” impact, and by using revenue streams to improve financial stability, this impact is increased.
CREATING IMPACT AND INFLUENCING SOCIAL CHANGE
- Work from within the community to ensure lasting empowerment
- Adopt the right elements of for-profits to achieve social good
- Use financial stability to ensure continuous social impact
The social business model vs. traditional business
Unlike a traditional business model that revolves around maximizing profit, social businesses measure their “success” by the social impact that is created.
Profits are seen as a tool, and what constitutes the
business model of for-profits is contained within the financial
dimension of the social business model. Key differences include:
The social impact model explains the mission of the business, while the traditional value proposition defines the value a business offers its markets and customers
The financial sustainability model generates enough revenue for the social mission, while the traditional revenue model seeks to generate revenue at any cost