In this chapter, you will be invited to draw up an economic model for your project. In the case of social enterprises, we also speak of a "social business model". What you see on screen represents your economic model. It is a canvas which describes how the project can be implemented and deliver value, both economic as well as social and environmental. The Social Business Model Canvas is just one tool for going from the idea to the formalisation of your project. In order to work on our economic model, I have produced an adaptation for social enterprises of the canvas developed by Alexander Osterwalder and Yves Pigneur in their book "Business Model Generation" published by Pearson, which I strongly encourage you to read. I have adapted this model for social enterprises and I have had the opportunity to test it successfully at a number of workshops I run for social entrepreneurs. So to begin with, let us go through the main parts of the canvas together. The top part represents the work that you did in the previous chapters, namely defining the social need that you wish to address along with your social mission. The central part represents the products or services offered. The idea is to formulate the how: how you will address your social challenge, i.e. what product or products and services you wish to offer. In the right-hand section, you define who your project will
be aimed at: how it will be financed and what impact you are aiming for. The left-hand section will focus on the implementation of your project, namely the key activities and resources that you need, the strategic partnerships that you must strike and, of course, the costs associated with your project. To begin with, let us listen to Félix, who will explain the benefits of working on this model at every stage of your project. Hello, everyone: I'm Félix de Monts and I develop Stagiaires sans Frontières, which is an association promoting a new format of time-share internships between companies and associations with a high social impact. So for us, the business model is first and foremost a very concrete and practical tool for asking ourselves the right questions. What is our ecosystem? Who might our customers be, and what might our sources of
revenue be? What products and services can we offer? And it is really a tool that has allowed us to structure our development. So, don't think of it as a theoretical tool just for people at Harvard: it's really accessible and appeals to your common sense. So the second point is that the business model continually evolves along with your organisation. It is not set in stone. So to take a specific example, that of Stagiaires sans Frontières, we were founded on a 100% associative business model with donations, and relying solely on good will, with projects in emerging countries, and after being in business for
one year, with our project expanding of its own accord, we turned to funding from companies who are our main clients, and development that is now focussed around France. So that all goes to show that the business model evolves as we do, so the last point is don't forget to draw up-- and then take the time to revise-- your business model and strategy every 3 to 6 months. That's it. See you again soon. This chapter is also closely linked to the previous chapter. It should enable you to evolve and confirm how your social mission is spelt out and how your product or service is defined. A number of you will be forced to refine and hone these, or even start again from scratch. And this is absolutely to be expected, because this is a thinking process that takes time, and this in particular is why at the start you may feel that things are repeating themselves from
chapter 4. So for pedagogical reasons, we are going to expand on each of the dimensions to the canvas one by one. The process of drawing up and formulating your model is not a linear process, but rather an iterative one that will evolve and change over time, which will feed on your reflection, experiences as agents of change and your discussions with your stakeholders. Everything that follows goes for both entrepreneurs and
intrapreneurs. It is also valid whether you are looking to set up a company or an association. The economic model is valid for any project, whatever its status. Furthermore, it will have an influence on the choice of governance and choice of legal status for your organisation. We will address these points in more detail in chapter 6. So to begin with, throughout this chapter you will need a large sheet of paper, different coloured Post-It notes, and felt-tip pens. You may also download the social business model canevas directly from the platform so that you can fill it in directly either as you go through the videos or at the end of each sub-section. Are you ready? Let's get started.
