Business Model Generation for Social Enterprises · Prof. Dr. Klaus Deimel Business Model...

University of Applied

Sciences

Business Model Generation for Social Enterprises

Prof. Dr. Klaus Deimel

CENTIM –

Center for Entrepreneurship, Innovation and Medium Sized Enterprisess

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Prof. Dr. Klaus Deimel

Professor of Controlling, Entrepreurship and Medium Sized Companies

Curriculum Vitae

1980-1986 Studies of Business Administration at Westfälische Wilhelms

University Münster, Germany

1986-1991 Research Assistant at University of Essen, Essen, and University of

the Saarland, Saarbrücken, Germany

1991-1999 Controller and General Manager at RAG Aktiengesellschaft, Essen,

Germany

1999-2012 Professor of Accounting at the Bonn-Rhein-Sieg University of Applied

Siences

2011- 2016 Dean and Vice Dean of of the Department of Business Administration

at Bonn-Rhein-Sieg University of Applied Sciences

Since 2016 Managing Director of CENTIM (Centrum for Entrepreneurship,

Innovation and Medium Sized Enterprises)

Since 2016 Member of the Supervisory Board of Bonn-Rhein-Sieg University

Since 2016 Member of the Supervisory and Investment Board of Digital Hub

Region Bonn AG (Incubator and Venture Capital Fond)

Profile

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Expertise

10 years of expertise in Mediums Sized Enterprises and as an Entrepreneur

Research on Entrepreneurship and Medium Sized Enterprises

Lectures in Social Investment, Business Modelling, (Social) Business Plan

Development

Social Business Plan Award (Member of the Jury)

Evaluation Board ( NRW-Gründerstipendium/Founders Stipend)

Scientific Board (Neues Unternehmertum Rheinland)

Supervisory Board / Investment Board Digital Hub Region Bonn AG

Profile

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

4

Agenda

Defining Social Entrepreneurship1

(Social) Business Model Canvas2

Recommendations3

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

5

Agenda

Defining Social Entrepreneurship1

(Social) Business Model Canvas2

Recommendations3

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

A quick animated

history of Social

Investment

Social Entrepreneurship

Introduction

Ben & Jerry

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Social investment is where capital is provided for social

benefit as well as financial returns. It includes

investment in organisations whose purpose is to create a

positive change in society, such as charities and social

enterprises.

Social investors are motivated to invest in projects that

will achieve positive social outcomes as well as financial

sustainability, and investors are often willing to trade off

the level of financial return they usually seek based on

the scale of social impact.

Social Impact Financial Profit

Social (Impact) Investment /Social Enterprises

Source: c.f. Local Government Association: An Introduction to Social Investment.

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Social enterprises are hybrids between purely philantrophic and purely commercial

organisations.

Source: Christine K. Volkmann • Kim Oliver Tokarski (Ed.): Social Entrepreneurship and Social Business,

Wiesbaden 2012, p. 20

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Taxonomy of social businesses comprises a broad hybrid spectrum of activities.

Source: Christine K. Volkmann • Kim Oliver Tokarski (Ed.): Social Entrepreneurship and Social Business,

Wiesbaden 2012, p. 22

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

10

Agenda

Defining Social Entrepreneurship1

(Social) Business Model Canvas2

Recommendations3

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

The process of social entrepreneurship means creating opportunities worthy of

serious pursuit in a two step procedure.

Source: Guclu, A.; Dees, J.G.; Anderson, B.B.: The Process of Social Entrepreneurship: Creating Opportunities

Worthy of Serious Pursuit , Center for the Advancement of Social Entrpreneruship, Nov. 2002, p.2

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Business Model

A business model describes the business idea and comprises three different elements.

Value Proposition (Social Impact Theory)

Is a business statement that summarizes why a consumer should buy a

product or use a service. This should convince a potential consumer

that one particular product or service will add more value or better solve

a problem than other similar offerings.

Value Creation Model/ Value Architecture (Operating Model)

Describes the firms or organizations position in the value chain and

how to execute all steps of the value creation process

Revenue Model (Ressource Strategy)

Describes how the revenues are generated, the cost structure, the

capital expenditure and the targeted profit margins.

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

The business model canvas helps to develop the business model of a (social) venture.

Source: Christine K. Volkmann • Kim Oliver Tokarski (Ed.): Social Entrepreneurship and Social Business,

Wiesbaden 2012, p. 115

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Porters generic value chain

Source: Porter, Michael E. : Competitive Advantage: Creating and Sustaining Superior Performance. New

York 2013.

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Source: Guclu, A.; Dees, J.G.; Anderson, B.B.: The Process of Social Entrepreneurship: Creating Opportunities

Worthy of Serious Pursuit , Center for the Advancement of Social Entrpreneurship, Nov. 2002, p. 8

Operating model of STRIVE workforce development process

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Business model canvas template

Source: Osterwalder, A.; Pigneur, Y.: Business Model Generation, Hoboken, New Jersey 2010

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Business model canvas for social businesses - template

Source: http://www.socialbusinessmodelcanvas.com/

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

18

Agenda

Defining Social Entrepreneurship1

(Social) Business Model Canvas2

Recommendations3

Prof. Dr. Klaus Deimel

Recommendations

1. Recommendation

Develop a comprehensive meticulous

business model!

Describe the business model in a way

that even a laymen can understand it!

Prof. Dr. Klaus Deimel

Recommendations

2. Recommendation

Describe exactly your:

Value Proposition (USP)

as well as

the social impact

of your project.

Prof. Dr. Klaus Deimel

Recommendations

3. Recommendation

Define your target groups carefully

in terms of

customers

and

beneficiaries

of your project.

Prof. Dr. Klaus Deimel

Recommendations

3. Recommendation

Talk to your:

customers

and

beneficiaries.

Prof. Dr. Klaus Deimel

Recommendations

5. Recommendation

Plan your the value chain of

your project carefully.

Which are your core

ressources?

Prof. Dr. Klaus Deimel

Recommendations

6. Recommendation

Build your network.

Avoid problems other founders

made before!

Prof. Dr. Klaus Deimel

Recommendations

7. Recommendation

Develop a well thought financial planing.

Revenues/Income

Capital expenditure

Costs

Prof. Dr. Klaus Deimel

Recommendations

8. Recommendation

Think big

Start small

Scale fast

Prof. Dr. Klaus Deimel

Recommendations

9. Recommendation

Prof. Dr. Klaus Deimel

Recommendations

9. Recommendation

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Elevator Pitch

Elevator Pitch

Beispiel: Elevator Pitch

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Textbook

Christine K. Volkmann • Kim Oliver Tokarski

(Ed.): Social Entrepreneurship and Social

Business, Wiesbaden 2012

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Recommendation:

Osterwalder, A.; Pigneur, Y.:

Business Model Generation,

Hoboken, New Jersey 2010

Prof. Dr. Klaus Deimel

Business Model Generation for Social Enterprises

Entrepreneurship Innovation Mittelstand

Forschung – Lehre - Transfer

CENTIM –

Kontakt

+49 (0) 2241 865-453

info@centim.org

Ihr Ansprechpartner für Entrepreneurship, Innovation und

Mittelstand in der Region Bonn – Rhein – Sieg

www.centim.org