Business Models
A wide range of actors--small and medium sized firms, social entrepreneurs, NGOs, impact investors, international development organizations, multinational corporations--are increasingly looking to market-based approaches to deliver social and environmental benefits.
This seminar explores the emerging use of business models to promote sustainable development, defined as improving the well-being of the poor while promoting eco-system resilience. Dominant development strategies employed by both government and business focused solely on growth tend to exclude the poor and degrade natural resources.
Business models define the way that enterprises create value by generating revenues through sales of products or services. To be financially sustainable, a business model must generate sufficient revenues to cover costs and earn a surplus/profit. Business models for sustainable development engage the poor as consumers, producers, and/or suppliers of environmentally sustainable products and services.
In this seminar, we will first explore the institutional context in which sustainable business models are emerging, including the ‘impact investment’ and ‘social responsibility’ movements; and then consider theoretical and methodological issues, including an analytical framework for ‘sustainable development’, a generic methodology for the design of a business model, and metrics for evaluating financial, social and environmental performance. We will also examine the key role of finance for sustainable business models, including social impact investing and micro-finance; and the role of government policy in helping sustainable business go to scale.
The second part of the seminar examines inclusive business models in four key sectors for sustainable development—energy, agriculture, water, and fisheries—and in the emerging area of climate resilience in coastal cities. For each sector, we will consider the key sustainability and development challenges and explore a range of successful business models. We will conclude by examining the challenge of going to scale, both in terms of business growth and development strategy.
Students will work in teams of four to undertake and orally present an in-depth case study of a successful business model is one of the five sectors. Students will also work in teams of two to design a business model and, in the final part of the seminar, present it to the class as a “pitch” to investors.
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This seminar explores the emerging use of business models to promote sustainable development, defined as improving the well-being of the poor while promoting eco-system resilience. Dominant development strategies employed by both government and business focused solely on growth tend to exclude the poor and degrade natural resources.
Business models define the way that enterprises create value by generating revenues through sales of products or services. To be financially sustainable, a business model must generate sufficient revenues to cover costs and earn a surplus/profit. Business models for sustainable development engage the poor as consumers, producers, and/or suppliers of environmentally sustainable products and services.
In this seminar, we will first explore the institutional context in which sustainable business models are emerging, including the ‘impact investment’ and ‘social responsibility’ movements; and then consider theoretical and methodological issues, including an analytical framework for ‘sustainable development’, a generic methodology for the design of a business model, and metrics for evaluating financial, social and environmental performance. We will also examine the key role of finance for sustainable business models, including social impact investing and micro-finance; and the role of government policy in helping sustainable business go to scale.
The second part of the seminar examines inclusive business models in four key sectors for sustainable development—energy, agriculture, water, and fisheries—and in the emerging area of climate resilience in coastal cities. For each sector, we will consider the key sustainability and development challenges and explore a range of successful business models. We will conclude by examining the challenge of going to scale, both in terms of business growth and development strategy.
Students will work in teams of four to undertake and orally present an in-depth case study of a successful business model is one of the five sectors. Students will also work in teams of two to design a business model and, in the final part of the seminar, present it to the class as a “pitch” to investors.
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