Application of the Business Model Canvas in Designing Sustainable Social Enterprises

Abstract

Social enterprises have emerged as a powerful organizational form that combines entrepreneurial practices with the pursuit of social and environmental objectives. Unlike traditional profit-oriented businesses, social enterprises seek to create social value while maintaining financial sustainability. Designing an effective business model that balances these dual objectives remains one of the most significant challenges faced by social entrepreneurs. The Business Model Canvas (BMC), a widely used strategic management tool, offers a structured framework for visualizing how organizations create, deliver, and capture value. However, its application in the context of sustainable social enterprises requires careful adaptation. This research paper examines the application of the Business Model Canvas in designing sustainable social enterprises. The study adopts a conceptual and exploratory research design based on an extensive review of existing literature, policy reports, and secondary case evidence. The analysis explores how each of the nine building blocks of the Business Model Canvas can be aligned with sustainability goals and social impact objectives. The findings indicate that while the traditional Business Model Canvas provides strategic clarity and coherence, social enterprises require modifications to incorporate social value creation, beneficiary-centric approaches, hybrid revenue models, and multi-stakeholder partnerships. The study concludes that an adapted Business Model Canvas can serve as an effective tool for enhancing the long-term sustainability, scalability, and impact of social enterprises.

Introduction

The text examines how the Business Model Canvas (BMC) can be applied and adapted to support the sustainability of social enterprises. It begins by highlighting growing global social and environmental challenges and the limitations of traditional government- and charity-led solutions. In response, social enterprises have emerged as hybrid organizations that pursue social or environmental impact while generating revenue through market-based activities. This dual mission makes effective business model design essential.

Unlike traditional businesses focused on profit or non-profits reliant on donations, social enterprises must balance financial viability with mission integrity. The study argues that many social enterprises fail due to weak business models, unclear value propositions, and overdependence on external funding. The BMC, with its nine interconnected components, offers strategic clarity but requires adaptation to address multiple stakeholders, including non-paying beneficiaries.

The literature review discusses social entrepreneurship, the evolution of social enterprises, and the multidimensional nature of sustainability—economic, social, and environmental. It emphasizes that poorly designed business models are a major cause of failure and that structured frameworks like the BMC can help align operations, value creation, and sustainability goals.

Using a conceptual and exploratory methodology based on secondary data, the study analyzes how BMC components can be modified for social enterprises. Key adaptations include broadening the value proposition to include social and environmental impact, recognizing dual customer segments (customers and beneficiaries), adopting hybrid revenue streams, and emphasizing partnerships with NGOs, governments, and private organizations.

The findings show that an adapted BMC enhances strategic planning, resilience, and scalability of social enterprises. The study offers managerial, policy, and academic implications, while acknowledging limitations such as the lack of empirical data, sectoral and geographical diversity, and the simplified nature of the BMC. Finally, it outlines future research directions, including empirical validation, sector-specific studies, integration with impact measurement frameworks, the role of technology, comparative organizational analysis, and policy support for social entrepreneurship.

Conclusion

This study set out to examine the application of the Business Model Canvas in designing sustainable social enterprises, with the objective of understanding how a widely used business framework can be adapted to suit mission-driven organizations. Social enterprises represent a critical response to contemporary social and environmental challenges, yet their long-term success depends heavily on the strength and clarity of their business models. The study demonstrates that while the traditional Business Model Canvas offers a valuable structural foundation, it requires meaningful adaptation to capture the unique characteristics of social enterprises. Elements such as value proposition, customer segments, revenue streams, and key partnerships must be reinterpreted to include social impact, beneficiaries, and sustainability considerations. The findings emphasize that sustainability should not be treated as an external or secondary objective, but rather embedded within the core logic of the business model. Furthermore, the study highlights the importance of hybrid revenue models, stakeholder collaboration, and impact-oriented value creation in ensuring the long-term viability of social enterprises. By providing a structured yet flexible framework, an adapted Business Model Canvas enables social entrepreneurs to align mission, operations, and financial strategy in a coherent manner. In conclusion, the application of the Business Model Canvas in designing sustainable social enterprises offers significant potential for enhancing strategic clarity, operational effectiveness, and scalability. This study contributes to existing literature by extending a mainstream business framework into the domain of social entrepreneurship and sustainability. While further empirical research is required, the insights presented herein provide a valuable foundation for social entrepreneurs, policymakers, academics, and impact investors seeking to build resilient and impactful organizations.

References

[1] Sparviero, S. (2019). The Case for a Socially Oriented Business Model Canvas: The Social Enterprise Model Canvas.– Presents a Social Enterprise Model Canvas tailored for mission-driven organizations and addresses challenges like mission drift and governance. (EconPapers) [2] Vial, V. (2021). A Business Model Canvas for Social Enterprises.– Proposes modifications to the traditional Business Model Canvas to better fit social enterprises given resource constraints and triple bottom-line goals. (sainshumanika.utm.my) [3] Balakrishnan Nair, P. (2022). Embracing Hybridity: A Business Model Innovation for Sustainable Social Enterprises.– Discusses the need for business models that balance financial sustainability and social impact, and proposes a tailored business model canvas framework. (Unimas Publisher) [4] Yudha, M. G., & Sudhartio, L. (2019). Social Business Model Canvas Development and Forming an Entrepreneurial Ecosystem for Waste Banks to Achieve Sustainability. – Case study demonstrating how a Social Business Model Canvas was developed for sustainable waste management enterprise and implications for entrepreneurial ecosystems. (Atlantis Press) [5] Ridwan, W. & Rachmani, N. N. (2025). Business Strategy Analysis Using the Social Business Model Canvas Approach (SBMC) on a Renewable Energy Enterprise. – Shows application of Social Business Model Canvas to strategy formulation in a sustainable energy social enterprise. (Ejournal UPI) [6] Geissdoerfer, M., Bocken, N. M. P., & Hultink, E. J. (2018). Sustainable Business Models: A Review.– Although not specific to social enterprise, this provides a strong theoretical foundation on integrating sustainability into business models, useful for conceptual grounding. (arXiv)

Copyright

Copyright © 2025 Dr. Nitin Ganorkar, Avinash Rajesh Lahote. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.