Re-Inventing the Social Business Model

Abstract

The recent global economic crises and the decline of the traditional welfare state are challenging the development of third sector organisations involved in the provision of public services. With the support of the Italian case and the experiences of different Italian third sector organisations, this contribution highlights how organisational survival and growth require reinvention of the business model, commencing with the concept of social, economic and environmental sustainability. The scope of third sector organisations depends on the type of government, the stage of economic development, the model of civil society, the existence of philanthropic traditions and the law and regulation. All these variables affect the business model of third sector organisations. This chapter contributes to the third sector knowledge in Italy and concludes with a discussion on solutions that are able to incentivize the use of entrepreneurial principles, stimulate networking, cooperation and growth while maintaining the relationship with the territories.