Balancing profit and purpose: Differences in business model components of social and traditional enterprises

Abstract

Social enterprises exhibit distinct business model characteristics that differentiate them from traditional for-profit enterprises. Within social entrepreneurship, business models reconcile the dual imperative of balancing social impact with economic sustainability. The article examines the existing gap in research by analysing the key business model components of social enterprises, compared to traditional for-profit enterprises. The study applies content analysis of 77 business plans of social entrepreneurs, using a Buisness Model Canvas framework. The findings reveal a refined interpretation of the Business Model Canvas tailored to social entrepreneurship, showing how stakeholder complexity and mission orientation reshape traditional business model structures. This study advances theoretical and practical understanding of how social enterprises configure their business models to balance financial sustainability with social impact, contributing to ongoing debates on business model innovation, social entrepreneurship and sustainable value co-creation.