Early-Stage Business Model Development in a Social Enterprise: The Case of “Light Of Hope Philippines”

Abstract

A social enterprise succeeds when its business model enables both social impact and financial viability. Responding to recent calls for more research on social enterprise business models, this study examines how the founder of the social enterprise Light of Hope Philippines (LOHP) developed a suitable business model for his enterprise. LOHP provides solar-powered devices and services to off-grid island communities in the Philippines, improving lives in an environmentally sustainable way. The study is based on a semi-structured in-depth interview with LOHP’s founder. Although not statistically generalizable, the findings suggest that: (1) Business model development in early-stage social enterprises begins before an enterprise is founded and typically continues for a few years after the founding. (2) This process is shaped by factors such as founder motivation, beneficiary needs, market conditions, support systems, and external influences. (3) To succeed, founders must continuously adapt and refine their business models. A practical implication is that social enterprise founders should work to improve their business models both before and after launching their ventures. This study provides a description of multiple factors impacting the early-stage business model development process in a recently-established social enterprise in the Philippines.