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The purpose of this study is to identify how the value dynamics of the freemium business model (BM) play out in a social enterprise.

We draw on a multiple case study of two social enterprises –one nonprofit (Aravind Eyecare) in Asia and one for-profit in Latin America (Biodent)– to analyze the implications of applying the value architecture of a freemium BM to social enterprises.

The freemium BM departs from standard practice when applied in social enterprises. Meaningful differences include the feasibility/desirability of converting free users to paying ones, the presence of significant variable costs –which requires balancing the ratio of free and paying customers– and the use of nontraditional pricing schemes to enhance value capture. The social freemium BM can increase scalability, value creation and value capture. Under this model, “beneficiaries” can be more than passive recipients of value and contribute to a venture's success in various ways –such as lowering its operational costs or enhancing its value proposition toward third parties.

While in the past years commercial enterprises have been disrupted by the emergence of freemium platforms, the social enterprise field has barely taken notice. We extract lessons and implications from this paradigmatic change for the theory and practice of business model innovation in social enterprises, of particular relevance to Latin America, where social and environmental disequilibria remain a recurring feat.

Identificar cómo el modelo de negocio freemium impacta el desarrollo de un emprendimiento social.

realizamos un estudio de caso múltiple de dos emprendimientos sociales –uno sin fines de lucro (Aravind Eyecare) ubicada en Asia y el otro con fines de lucro ubicada en América Latina (Biodent)– para analizar las dinámicas qué genera el modelo de negocio freemium en la arquitectura de valor de los emprendimientos sociales.

Cuando el modelo freemium se aplica a un emprendimiento social, surgen diferencias respecto de la práctica estándar en empresas comerciales. Estas diferencias incluyen la viabilidad/conveniencia de convertir a los usuarios gratuitos en clientes de pago, la presencia de costos variables significativos –que imponen la necesidad de equilibrar la proporción de usuarios gratuitos y clientes de pago– y el uso de esquemas de precios no tradicionales para mejorar la captura de valor. El modelo freemium social puede contribuir a facilitar la escalabilidad, así como la creación y captura de valor de un emprendimiento social. Bajo este modelo, los “beneficiarios” pueden ser más qué receptores pasivos de valor y contribuir al éxito de la empresa de diversas formas –por ejemplo, reduciendo sus costos operativos o mejorando su propuesta de valor.

En las últimas dos décadas, varias industrias sufrieron grandes disrupciones por el surgimiento de modelos de negocio basados en plataformas, como el freemium. Sin embargo, hasta ahora el campo del emprendimiento social parecía no haber tomado nota de este cambio paradigmático. En este artículo, extraemos lecciones e implicaciones de este cambio para la teoría y la práctica de los emprendimientos sociales. Nuestros hallazgos son particularmente relevantes para América Latina, en donde subsisten profundos déficits socio-ambientales.

This paper aims to explore the intersection between service and social innovation, using a service-dominant logic (SDL) ecosystem approach to analyze how service innovations cocreate transformative value for individuals and communities.

A case study, with different data sources, is used to understand different innovations in a program that provides financial training to women in poverty in Colombia.

In the program’s service ecosystem, actors worked in tandem to develop dialogical service innovations. These service innovations transformed into social innovations, cocreating transformative value at different levels of the service ecosystem, including beneficiaries, families and communities.

First, this study illustrates how, during service value cocreation experiences, a dialogical innovation path occurs with the simultaneous participation of different service entities. Second, it uses transformative value cocreation to integrate service and social innovations conceptually. Third, it reveals how service innovation cocreates transformative value at different levels of the service ecosystem. Fourth, it shows how technology in its material and immaterial forms, working as an operand and operant role, respectively, facilitates service innovations.

This study illustrates how a wider service focus including all actors involved, in addition to a holistic view of beneficiaries, can prompt service and social innovations.

Service and social innovations have been seen as parallel fields. This study uses SDL to integrate these types of innovation processes and outcomes by applying the concept of transformative value.

Fundraising plays a critical role in the success of non-profit organizations (hereafter NPOs). This study aims to propose to analyze fundraising from a service-dominant logic, specifically from a service ecosystem approach, to understand the different entities and interactions involved in this activity, as well as the types of value that emerge from them.

A cross-case study was developed using three health-care Brazilian NPOs. Data collection methods were performed to build each case, including observation of NPOs’ telemarketing staff interaction with donors and long interviews with their marketing managers. Data analysis involved applying the service ecosystem framework to each NPO and contrasting them.

First, the findings revealed the way in which religious, political and child-rearing institutions integrate into citizenship ideals that permeate both NPOs’ and donors’ attitudes and behaviors. Second, five different fundraising interactions (emotional, religious, political, influencer and empathetic) in which NPOs and donors pool their resources to co-create value are presented. Third, how the outcomes of fundraising interactions manifest for NPOs in the form of financial (money and time) and social value (social legitimation) and for teleworkers and donors in the form of emotional value (joy and relatedness) are identified.

This paper used a service ecosystem approach to analyze a new service context “fundraising,” which has been scarcely discussed in the literature. The findings show how macro-level institutions work together for fundraising. Five different fundraising interactions were identified, linking the communication with the service experience literature. Finally, the findings identify fundraising’s different value outcomes extending traditional approaches for evaluating this activity.

The purpose of this paper is to explore the extent to which hope and perceived goal attainment can be developed in subsistence entrepreneurs through the right training tools.

A longitudinal study of a subsistence entrepreneurship training program in three Central American countries was carried out. Participants were divided on the basis of their exposure to training (yes, no), and of the type of training received (none, business plan, business model). The authors carried out three assessments (just before the program, six months and one year after the program) of participants’ business goals and their hope of attaining them. Information was analyzed using linear regression.

Participants exposed to training reported significant increases in perceived goal attainment and in their hope levels. Training based on the business plan affected hope agency in the short term, as predicted by the logic of causation theory. Training based on the business canvas affected hope pathways, as predicted by the logic of effectuation theory.

Given the data collection process (a non-random sample and selection of participants), the findings are not generalizable without stringent procedures and further replication.

If hope is a reliable predictor of goal attainment, it should be promoted and measured. Given the limited means of gathering data and making reliable projections that most entrepreneurs endure, the business canvas’ contribution to entrepreneurs’ “emotional equipment” ceteris paribus should be more valuable for subsistence entrepreneurs.

This is the first study comparing the short- and long-term effects of two entrepreneurial learning devices on entrepreneurs’ hope and business goal attainment.

Purpose – By analysing the experience of homelessness, this chapter aims to understand how individuals experience involuntary life changes in uncertain contexts and analyses the role of consumption, in terms of possessions and practices, along the process.

Methodology/approach – This study adopts a phenomenological approach, focusing on the homelessness experience. It involves an 18 month quasi-ethnography study in a charity that supports the homeless individuals, where interviews about their retrospective biographical accounts were performed. The data was analysed using existential phenomenological procedures.

Findings – Informants’ pathways to homelessness reveal a four-stage process of forced self-transformation (initial self, forced negotiation, transition, transformed self) which takes place across two stressful situational contexts: the triggering events for transformation (i.e. that led informants to lose their home) and the persisting state of uncertainty (i.e. further survival living in the streets).

Social implications – In the current postmodern times there is greater uncertainty surrounding individuals’ life changes. The consequences of the current economic crisis have threatened individuals to lose their homes. By having a better understanding of the way individuals experience this type of loss, the study brings new information about how to support them.

Originality/value of chapter – This study highlights contexts where Van Gennep's transformational routine may not be suitable in the current postmodern times, and provides an alternative transformational routine that takes into account the uncertainty that accompanies involuntary transformations.

Within Santiago, Chile's capital city, Barrio is a fundamental urban concept: an identity of place that defines a social space more than the territorial boundary of a designated area. Nearly 30 years of sustained, economic growth have positioned Chile, and Santiago with 40% of the country's population, as a tourist, financial and investment centre for South America. After a general decline of the inner-city area during the time of dictatorship (1973-1990), three inner-city residential barrios are being re-defined by their social and urban heritage as part of the “coolest” city of South America. These residential barrios possess the social characteristics of an urban unit within the concept of an ethical city—autonomy, conviviality, connectivity and diversity—and, in form and use, the basis of urban cultural tourism, a living heritage of residential architecture, public space and urban culture. The spatial and economic transformation of these barrios shifts the existing dynamic between the residents' social capital and the barrios' symbolic capital to the question of whose rights and interest should prevail. Through a literature review, policy review and an analysis of morphology and land use of three barrios, this article draws lessons to assist a re-thinking of the development of this urban, social-spatial unit of Chilean cities.

Access and inclusion in higher education present different problems to highly selective universities, and to unselective, demand-absorbing colleges. Also, the public policy perspective of the government has its own goals and concerns. This paper examines these differences in the case of Chile. Elite institutions face a problem they interpret as a loss of diversity due to the increasing gentrification of their student body. In the other segment of universities, students ready to work at a college level without support are a minority, and institutions attempt to change the profile of their student body through remedial courses and other palliative measures.

This paper explores the sociological, economic, and political reasons for the collapse of Venezuela's 40-year “pacted” democracy, the eight-year conflict between the country's new president and the opposition, where this conflict has led Venezuela, and what its prospects are for the near future. It proposes that the collapse of Venezuela's “ancien regime” can best be understood by an examination of the impact the rise and fall of oil prices had on its economy, society, and polity. A 20-year economic decline led to the election of Hugo Chavez, a radical outsider, who refused to play along with the country's old political class. This class, in turn, refused to accept Chavez as the legitimately elected president and launched the country on an eight-year roller-coaster ride of counter-revolution and radicalization, which recently ended with the reelection of Chavez and a massive popular endorsement for the establishment of “21st century socialism” in Venezuela. Exactly what such a project means is still unclear, but it so far involves state support for self-managed workplaces and an anti-capitalist and participatory democratic state in the midst of a still functioning capitalist economy. With the apparent defeat of obstacles that are external to the Bolivarian movement, as the pro-Chavez movement is called, such as the domestic opposition and U.S. intervention, the movement is now forced to confront its internal obstacles, such as clientelism, corruption, and personalism, if it is to succeed in the long run.