Transformations  in
Business & Economics

A CASE STUDY OF THE EVOLUTION MECHANISM OF SOCIAL ENTERPRISE BUSINESS MODELS: FROM "LIVING ACCORDING TO THE SITUATION" TO "EXPANDING TERRITORY"¹⁰
Xueying Tian, Yufan Wang

ABSTRACT.
BACKGROUND: With the rapid development of the economy and technology, the business environment of enterprises has changed greatly and become more uncertain. In this case, the appropriate business model has become a favourable way for major enterprises to compete with each other. The rise of social enterprises provides a new way to solve social problems and promote social governance.
OBJECTIVE: In order to deeply study the dynamic relationship between business model elements of social enterprises, interpret the development path and evolution logic of the business model, and promote the theoretical research of the business model of social enterprises from the core level.
METHODS: In order to explore the development path and evolution mechanism of the business model of social enterprises, field investigation and formal interview are adopted, and further data and information are collected through interviews, enterprise websites and research reports etc.
RESULTS: Based on the characteristics of business model elements in different stages, the development path of the business model in the growth stage, which takes the product or service interface as the core, drives the development of customer interface, asset management interface and financial interface; The core of the business model in the expansion stage is the customer interface, which leads to the development of the product or service interface, the asset management interface and the financial interface. From the start-up stage to the growth stage, the business model is driven by products or services from nothing to be "adapted to the situation", and the enterprises shift from the pure creation of social value to the simultaneous realisation of social value and economic value, customer demand drives the development and innovation of business model "expanding territory", and the social value and economic value of enterprises change from synchronisation to integration.
CONCLUSIONS: The research reveals the regular characteristics of the sustainable and healthy development of social enterprises, expands the research on the design and innovation of business models for social enterprises in the context of China, and has guiding value for the exploration of the development path of social enterprises. Non-profit organisation's transformation of social enterprises requires innovative business models. Social Enterprises need to stick to the dual mission to realise the dual value of win-win cooperation. 

KEYWORDS:  social enterprise, business model, development path, evolution mechanism.

JEL classification:  M14, M19, M10, P2.

¹⁰Acknowledgements:  M14, M19, M10, P2.