Towards a Better Understanding of Business Models of Social Enterprise in an Uncertain Institutional Environment

Abstract

Social enterprises, like other organizations, need to change their business models under uncertain institutional environment, to sustain. All organizations engaged in the social sector are not social enterprises. The difference is important because to social enterprises, the aim is not only value creation and sustainability but also empowerment of its customers and the local community. This chapter demonstrates how social enterprises survive in uncertain institutional environments through a continuous adaptation of their business models through comparative case studies of two organizations working in the social sector trying to address infrastructure gaps of poor access to electricity and open defecation. It also aims to show the difference in the business models of social enterprises and social businesses that gets revealed when organizations are faced with a dilemma.