Case Study

The advantages of the Business Model Canvas compared to other business models are that it can be prepared quickly, expanded in content, flexibly shaped and, most importantly, that it can be effectively applied to social enterprises.

There are many websites and videos to help you to get to know and use the model, and the canvas can be downloaded for free: free download here.

A good example is the Homoki Varázskert  Szociális szövetkezet (Sand Magic Garden Social Cooperative) that relies on the model in its operation. The main activity of the cooperative is the cultivation of spices and herbs, as well as the production of handicraft products. In the workshop of the cooperative, special teas, spice mixtures, gels and cereal bars are made by hand from dried fruits, dried herbs and other natural ingredients.

The launch of a social cooperative, given that it is a fairly special form of organization, is determined by business planning. A good cause or a noble goal alone will not be enough for a successful business. Solely because we are lovable, we will not have regular costumers. Starting a social cooperative is a rather resource- and time-consuming task.

When making canned products (jam, syrups), the creating of conditions for production is less investment intensive, however, a competitive advantage must be provided by some other resource. Whether it is a food engineer working out very creative, surprising flavour combinations, a more efficient, economical production technology or very innovative packaging.

Also, from the point of view of the sustainability of the social cooperative, it is important to assess and identify the needs.  The Sand Magic Garden Social Cooperative produce additive-free healthy products often using local ingredients. Therefore, it is important to know, WHO do we want to address with these products; FOR WHOM does it represent value? Are they for families with young children living in an urban environment, with an average or above-average income for whom it is important to buy chemical-free raw materials and have adequate solvency to do so? Or are they for consciously living customers? If we want to address conscious customers, a mall or a supermarket is not the optimal place for them, but if people living in big cities are our primary target group, we have to approach filling out the model with a different logic.

Apart from needs assessment, another element of the model is customer relations, which also depend on the activities of the social enterprise. In the case of Sand Magic Garden Social Cooperative, direct contact with the customers can be built up when selling on different markets. If the cooperative does not have such an area of service, it is necessary to think in different business steps than in the previous case.

It is recommended to continuously evaluate and update the model as the business develops. For example, Sand Magic Garden Social Cooperative contributes to the goals not only through direct job creation, but also indirectly. Disadvantaged, low-educated or even homeless people, after successfully completing vocational training in the canning industry, are provided with a continuous, declared and legal employment by the social enterprise. Another 10 families earn additional income thanks to the social cooperative by becoming suppliers of fruit and vegetable raw materials for the social enterprise. Years later, by integrating new suppliers and developing product that responds to market needs, the social cooperative will already be a key employer contributing to solving local social problems.

The flexibility of the business model is a distinct advantage during the pandemic period. The pandemic made it clear that the Canvas model needs to be kept under continuous review. With regard to the changed economic and competitive environment and other variables, social enterprise is forced to come up with a completely different value proposition, which on the one hand helps them to survive or, in the long run, may even lead to higher profits. For example, additive-free products that promote health came to the fore, and online commerce began to flourish.

VIEW MORE IN CASE STUDY PAGE