Social Business Model vs. Traditional Counterpart- What’s Today’s Success Mantra???

How do you use the social business model to improve customers’ experience? To do that, you need to know this business model in depth. Moreover, you must know about the enterprising social businesses making it big at this moment. 

“In today’s world, a social business model is a natural customer expectation, not an exclusive idea.” 

In connection with this often-heard angle about the social business model, I may unfold the unique insights I found after studying the social entrepreneurship angles of businesses like Grameen Bank, Netflix, Patagonia, and others. 

Easy Anecdotes of the Social Business Model You Can Follow

Want quick success in your entrepreneurship venture? The social business model may help you. The secret to mastering this model is not trying abstract social ads or juicing with more than 50% of your brand audience. 

Instead, try bringing your target customers under the same umbrella. Start socializing in a disruptive way. 

On that note, we may take a sneak peek at what Glossier did as a successful social business model. 

This makeup sensation brand started gathering traction among users when the founder started a personal blog. To my surprise, when I started reading the blogs, I found out that there are solutions to our deepest queries around beauty brands. 

If you are beating around the bush, know that you’ve thought it too. I used to think about the base ingredients in every product from each niche that is popular. 

On the flipside, I also thought about the added chemicals that may do sustained harm if I applied the product for a long time. 

The blogs had just that! So, the key is making relatable content. However, the blogs subtly hit the brand marketing funnel too. 

It creates an ecosystem of landing page mentions that will loop readers. It will also make them intrigued about one thing or another about the brand! 

What is social business? Why do you need one? 

Formally, a social business is a venture that solves one or more of the major issues affecting humanity, such as social, environmental, or economic problems. 

This means that the business could specifically try to help in an area such as homelessness, pollution, hunger, and so on. Nobel Peace Prize laureate Muhammad Yunus vouched for this thought. 

But the crux of this model lies elsewhere. It needs you as an entrepreneur to promote your social ideal. Also see whether it gels well with the target audience.

Mindmaps of Successful Social Business Models 

The example of Grameen Bank is an ideal starting point for exploring what a social business should be about. Yunus created this model around the mid-1970s. His model was a community Development Bank that gave small collateral-free loans to people. 

Grameen Bank follows a basic principle. The organization prefers loans to alms. People who take loans have a sense of ownership and responsibility. 

They now have to make a living out of the loaned money. Otherwise, they can’t pay back. Now, a lot of micro-banking companies engage in this way. 

The start of the 21^st century saw more social business enterprises start, with Grameen Danone, one of the most notable. 

There’s a reason why it started in Bangladesh first. Yunus says his inspiration was a local yoghurt dairy. It produced yoghurt with vital nutrients that impoverished children lacked. 

This organization is bent on avoiding loss-making. At the same time, shareholders get no profit shares either. 

As we look across the planet, we can see other examples, such as TOMS Shoes. This for-profit company is based in California. It is operating since since 2006. The firm’s main goal is to provide simple footwear for every child who needs it. 

The company uses a popular one for one model. You buy a pair of shoes for them, and they give out another pair in charity.

We must also take the name of Patagonia. Firstly, their main focus is corporate ethics. They also focus on trading ethics. In the end, they also have an eye out for sustainability. 

The role of leadership

The examples we’ve looked at so far confirm the importance of leadership in social business models. These are the people who have to drive the vision forward and inspire others to take action. 

Leaders in this area are also required to ensure that the business continues to stick to its original model as it grows and becomes more powerful. 

Recent blog posts by business leader Ehsan Bayat show how high-profile people can help to show us key issues that not everyone is aware of. 

Posts covering areas such as rising food insecurity in Afghanistan reveal worrying trends that require action to be taken. 

Meanwhile, other posts about technology, such as agrotech and aquaculture, reveal some of the ways that help could be provided to those most in need.

The impact of technology on social enterprises

The previous point shows us how emerging technology is one of the most important elements of the social business model. 

In many cases, it’s the arrival of some new type of technology that allows inspiring business leaders to find a way to finally solve a major problem while adhering to the social model we’ve been looking at here.

Takeaways from This Model

One of the most interesting developments in recent years has been in the way that there’s growing belief that the blockchain and smart contracts can help to drive the social business sector forward in a new direction. 

It has long been viewed as a way of providing access to financial products and services, such as payment processing, for the unbanked population. 

However, it’s also worth bearing in mind that the blockchain automatically increases transparency and trust, as all the transactions are publicly available and can’t be altered.

This looks at how a social business model works. It is revealed that it’s a way of helping others that should continue to grow and prosper. 

With inspiring business leaders and emerging technology to help drive it forward, this way of doing business ethically should prove to be ever more sustainable and worthwhile.