The Business Model of Social Entrepreneurship in Indonesia

Abstract. The purpose of this study is to develop a conceptual setting in which the business models of social enterprises can be analyzed through value proposition, value creation and value capture. This study employed a method of qualitativeresearch through in-depth interviews of 30 social entrepreneurships in Jakarta, Yogyakarta, Bandung and Bali. The result of the study showed that, in terms of the value proposition in business models of entrepreneurship, all organizations areestablished 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 humanity-based programs, capacity building and holding educationand 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 the social entrepreneurship will be. This research proposes a new typeof business model that aims to categorize and explain business model innovations for sustainability, provides mechanisms to assist the innovation process for embedding sustainability in business models and defines a clear agenda for business modelsfor sustainability. Based on the empiric data, this study successfully identified four types of social entrepreneur models in Indonesia which are based on the mapping results found in all of the organizations aiming to resolve social, economic, andenvironmental issues in Indonesia. This study successfully identified four types of business models: Mixed-based Model, Sharia-based Model, Volunteerism-based Model, and Cooperation-based Model. Keywords: business model, social entrepreneurship, sustainability Abstrak. Tujuan dari studi ini adalah untuk mengembangkan konsep bisnis model yang diaplikasikan pada organisasi kewirausahaan sosial dengan penitikberatan pada tiga aspek yaitu preposisi nilai, penciptaan nilai dan tangkapan nilai. Metode penelitian kualitatif dipilih dalam studi ini dengan melakukan wawancara mendalam terhadap 30 organisasi sosial yang berada di Jakarta, Yogyakarta, Bandung dan Bali. Dari hasil riset ini, model bisnis organisasi kewirausahaan sosial yang dilihat dari aspek preposisi nilai menunjukkan bahwa semua organisasi memulai aktivitasnya dariadanya perlakuan diskriminatif yang diterima oleh kelompok marginal. Aspek penciptaan nilai diwujudkan oleh organisasi sosial entrepreneurhip dalam berbagai kegiatan yang memihak pada kemanusiaan melalui serangkaian penguatan kapasitas, pendidikan dan training bagi kelompok sasaran, sedangkan tangkapan nilai dilihat dari keberhasilan implementasi dan keberlangsungan program. Riset ini pada akhirnya menemukan empat kategori model bisnis organisasi yang bergerak untuk memecahkan masalah sosial, ekonomi dan lingkungan di Indonesia yaitu model bisnis campuran, model bisnis syariah, model bisnis sukarela dan model bisnis koperasi. Kata kunci: model bisnis, keberlanjutan, kewirausahaan sosial