Value proposition includes the basic arguments regarding the reason someone should buy the product/service. Social Enterprises are related to the possible social value and depend on it. Realistically, a social enterprise cannot be sustainable only by generating social value. Since it is also an enterprise it will generate commerce value simultaneously with the social value. Both values have many aspects in common.
Value Proposition creates value for customers including a mix of their needs. In the case of social enterprises, the needs may have a social dimension and usually the customers are not the direct target group that benefits from the product/service. Values may be quantitative (e.g. price, speed of service) or qualitative (e.g. design, customer experience) and below there are the types of value proposition:
Newness: Some Value Propositions are referred to a totally new type of needs that since today nothing similar existed. For instance, it can be a new mean of transportation for people with disabilities.
Performance: An extremely common way of creating Value is the improvement of the current performance of the product or service. In social enterprises, this kind of value proposition may occur a conflict between the desired performance levels and the social mission.
Customization: Is the way of designing products or services aligned with a target group’s needs. Lately this type of value proposition has become more and more popular. In the case of a Social Enterprise, it can be a specialization of a product in a group of people who are disadvantaged, and this specialization will make their lives easier and more convenient.
“Getting the job done”: This type of Value Proposition can help simply to implement a specific job to a target group which faces inequalities or lacks social inclusion.
Design: Designing value is one of the most difficult values to measure. This value is usually more desired in fashion sectors. In case of a Social Enterprise, value can be referred to a product that is designed with a specific purpose to help people who are moving in a wheelchair, to easily navigate in their houses or in the streets.
Brand/status: This value aims to ‘add’ specific characteristic e.g. wealth to the person using the product. This category is not usually proposed to social enterprises’ products or services.
Price: Many products offer the same qualities or benefits as others but in lower price. This category is usually not applicable in Social Enterprises, because the aim of the enterprise is social and does not apply cost reductions etc. and generally anything that could negatively affect the social value.
Cost reduction: Another value proposed can be the value of helping people to reduce their costs. For example, people with chronic diseases pay huge amounts monthly in their medication. Many of them are not able to work so they face difficulties in accessing their medication. Social pharmacies offer free medication.
Risk reduction: This kind of value proposition can help people from reducing risk levels for a specific reason. For instance, people who belong to vulnerable groups are helped to reduce the risk of remaining unemployed.
Accessibility: This kind of value propositions aims to create products and services which are available to people who previously were unable to access them. For example, refugees lack to access higher education in the country of their hosting country. Via a fast-paced course of the speaking language, they can easily access higher levels of studies in the field of their interest.
Convenience/usability: Making things more convenient or easier to use can create substantial value.
Here are some examples of questions that can be asked to fill this block:
Which social problem do we try to solve?
Which social needs’ do we cover?
How visible or prominent is our impact value proposition? Who values and would pay for our impact value proposition?
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
Which job are we helping the customer get done?
Which customer needs are we satisfying?
What bundles of products and services are we offering to each Customer Segment?
