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Understanding Business Model of Social Entrepreneurship in Indonesia

Bevaola Kusumasari
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Bevaola Kusumasari: Department of Public Policy and Management Faculty of Social and Political Sciences Gadjah Mada University, Indonesia

Abstract of Economic, Finance and Management Outlook, 2016, vol. 5, 4

Abstract: Social entrepreneurship is distinguished as a business field oriented to fulfilling basic human needs which existing markets or institutions have failed to provide. In this study, the base of social entrepreneurship principle is developed by observing business models that attempt to cope with a number of social issues. To face the variety of social missions with the social values created in organization being studied, the design of the analyzed business model is consequently more emphasized on three aspects - value proposition, value creation and value capture. This study was conducted in 30 social entrepreneurship organizations located in several cities in Indonesia, including Yogyakarta, Bandung, Bali and Jakarta. The result of the study showed that, in terms of the value proposition in business model of entrepreneurship, all organizations are established 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 humanism-based program, capacity building and holding education and 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 social entrepreneurship will be.

Date: 2016
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