Creating Sustainability in Small and Medium Business Management by Creating Shared Value (CSV) and Business Model Canvas (BMC)

Abstract

To achieve the sustainability, apart from the additional growth of the business enterprise in the present day, it is necessary to apply the ability in making a profit, integrate with the use of resources, and the expertise of managing the business to create economic and social values at the same time. Creating shared value (CSV) is a concept that integrates social and economic values together. In other words, simultaneously creating economic values while responding to social needs, improving profits, improving environmental performance, and the society’s quality of life. The management of the process in the activity of business needs the definition of the business model to guarantee that the business will have a systematic approach. Business Model Canvas (BMC) is one of the tools that can help entrepreneurs achieve their objectives by managing the activity process in three sections: organization, supply chain, and society.

Therefore, the Business Model Canvas is about creating business opportunities and the possibility of solving social problems with the organization’s assets, according to the guidelines of the creating shared value. The corporation has the responsibility of managing every step during the process of the activities. It indicates that it is necessary to operate the business normally, with responsibility, being aware of the impact on society and the environment, and creating value for internal and external stakeholders of the organization.