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Innovative Business model addressing global challenges

Innovative Business model addressing global challenges. A comparative analysis of social venturing co-operative entrepreneurship business model vs traditional business models. Business model definition.

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Innovative Business model addressing global challenges

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  1. Innovative Business model addressing global challenges A comparative analysis of social venturing co-operative entrepreneurship business model vs traditional business models

  2. Business model definition • A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts (alexander osterwalder, pigneuryves (2010)

  3. Plotting business models in a continuum • Typology: Investor owned firm business model (IOF-bm), Traditional Co-op Business model (TC-bm), new generation co-operative business model (ngc-bm), social venturing business model (Sv-bm) • 100% profit continuum 0% Profit • IOF-bm Tc-bm not-for- NGC-bm profit SV-bm SVcE-bm

  4. Global challenges • Climate change – fossil fuel – coal, oil, & natural gas – burning of these is the cause of climate change.coal generates 40% of all global electricity, when the true cost is taken into account, renewable energy begins to look by far the best option for health & sustainable future • Weaning humanity off coal is not easy • Unsustainable use of raw materials – leads to climate change • Use of inappropriate technology – leads to climate change

  5. Global challenges cont’d • Urbanization, livelihood & food security • There is a direct relationship between industrial growth and urbanization (Daniel yet fhang lo (2010), davis & Henderson (2003), Ellison & glaser (1997) • Urban places exist largely because of some sort of agglomeration economies in production that is not present in rural environment – therefor agglomeration of economies in rural areas would spread out urbanization • The industry improves the livelihood & food security by supplying the urban dwellers with sufficient quantities and quality of both raw agro-food & agro-food products & at right time, place through an efficient & effective logistic system

  6. Differences btn business models

  7. SVCE-bm spanning sphere Primary productionSecondary level value addition orTertiary level Processing AGGREGATORS Act as Distributor/ market agent Holding equity shares & delivery rights in tertiary enterprise Specified number of smallholder farmers Wholesale co-op or Sale to co-op or open mkt Value addition enterprise Delivery rights & equity shares Retail co-op Open market/commercial or retail for excess commodity/product Act as Offer farm inputs, equipment, training, consultancy, research etc. by host individuals & institutions (philanthropist / social venturing entrepreneur/investor)

  8. SVCE-bm building blocks

  9. Thank you • The end

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