What are the Influences on Scalability for the Social Business Model in Denmark? – The Case of Bybi and KBHFF: How do they Structure their Organizations? How do they Motivate their Members?

Abstract

This thesis is going to investigate the social business models scalability in Denmark. The research is a case study into the social business model based on two examples in Copenhagen, Bybi and KBHFF. Bybi is producing honey in the city with a social purpose directed towards socially vulnerable groups. KBHFF is a food collective with a social purpose directed towards empowering their members to live a common set of values. The Danish Ministry of Business has a clear focus toward facilitating scalability in the social business industry in Denmark. They believe that if a social business scale, their social purpose will scale as well. Therefore the thesis frames the research question towards illuminating how and why Bybi and KBHFF scale. The empirical findings consist of an initial open interview with the Danish Ministry of Business, which led the research to two semi-structured interviews, complementary participatory observations and secondary data from Bybi and KBHFF. The research was undergone as a qualitative approach and the data collected was used to determine the influences on their ability to scale. The main theories are scalability, empowerment and motivation, and organizational types, which provided an exploratory lens to gage the empirical findings. The two social businesses of Bybi and KBHFF were found to have a hybrid model with a dual goal towards both a social and a business purpose. They have both managed to create a strong organizational structure, which creates an intrinsic motivation and an empowering effect in their members. Both of these factors have facilitated their scalability. However, they do not scale the way the Danish Ministry of Business expects them to and the reason lies within the nature of the social business model and could validate further research into the disconnect between the two on a political level. The findings provide answers to the research question and have contributed to the field of social businesses and scalability in Denmark.