Research Reports
The Evaluation of Business Models and Betterment Alternatives
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AuthorOh, Naewon
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Publication Date2011.11.30
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Original
This is the second year report of the two-year collaborative research entitled 'A study on alternatives promoting social enterprises for vitalizing rural community and creating jobs in rural areas'. This study consists of four sub-research subjects. This is the report of business models for social enterprises in rural communities.
This report suggested the betterment alternatives of social enterprises in rural enterprises through critically reviewing situations and experiences of leading social enterprises in the fields of general care, education and medical treatment, agricultural partnership projects, and regional development. In particular, we scrutinized them in the context of the balances between markets for the continuity of business and the pursuit of social goals.
The summaries of findings are as follows: First, the market of general care is enlarging it's volume resulted from the increase of welfare demand and policy expansion based on the aged society, but competition becomes tough with private companies. A complex welfare service system based on human life cycle must be established in order to be competitive. The high quality of services will be able to be provided via business management assuring the development of client-fit-service and employee's labor right in both policy and private markets.
Second, the unmet fields which the public cannot provide because of the decrease of rural population and public finance will be increased in the fields of education and medical treatment. However, private market cannot meet this demand. Accordingly this sectors will be a field of social enterprises in the rural areas. In this case, a wide range of supply system is needed because these fields need professionality and the scale of economy. For example, the supply system of professional teachers can be possible in the wide range of supply system.
Third, delivering, processing, and farming supports about environment-friendly products which small and mid farmers produce are very important to vitalize regional and community economy. However, a large portion of social enterprises cannot ensure profits. Partnership between social enterprises and regional agricultural entities such as village farming organizations and farming cooperative associations should be connected. Also, professionalized business items should be established.
Fourth, the market related to regional development projects such as eco-tourism, cultural industry, and returner connected are still not settled down, even if it has potential. A strategic approach is necessary in this field. In particular, cultural industries such as the preservation of traditional culture and performing arts need supports from the regional social economy and local governments. Because this fields needs long period of time to be self-supported.
Fifth, the fields of recycling of resources and cleaning are very competitive and lower grown-up field. However, these field is meaningful in terms of the amelioration of regional environment, working opportunity for the disadvantaged, and the assurance of employee's working rights. Accordingly, it is necessary that local governments establish protective markets for social enterprises.
Sixth, social enterprises formed by disabled groups cannot be continued if they depend upon a protective market and produce lower quality goods. The success of these social enterprises is basically dependent upon the production of high quality goods.
Lastly, the advancement of social enterprises' ability is needed through networking among social economy. The role of social economy is very great in terms of the identification of regional problem, the education of personnels, capital, market, and regional policy. Even if the establishment of business model in the level of a single social enterprise is important, the networking among regions and business items and the effective intermediary organization are more important.
Researchers: Nae-Won Oh, Chang-Ho Kim
Research Period: 2011.1~2011.10
E-mail Address: naewonoh@krei.re.kr
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