Exploring integration of non-economic goals into business models of small regional food enterprises: embedded value creation

Purpose - Small regional food enterprises (SRFEs) are important in developed and developing nations, with a policy (agribusiness) focus on them as potential growth engines and contributors to healthy local economies. But their survival is increasingly threatened by the globalisation of large retail food value chains. Thus this paper seeks to explore how the value creation component of SRFE business models can be enhanced to maintain their viability. Design/methodology/approach - Conceptual paper. Findings - The growth of alternate food networks (AFNs) creates a potentially attractive market segment for SRFEs, whose participation in farmers markets, box schemes and other forms of direct selling to consumers who value locally produced food has grown over the past decade. While the strategic management and marketing literatures suggest that competing effectively requires a tailored and coherent business model, little of the business model literature on small and entrepreneurial firms addresses this distinctive sector. As such, there is an opportunity for a renewed approach to enhancing SRFE business models. Originality/value - We take particular account of a well-established characteristic of many SRFE enterprises – priority placed on non-economic goals (NEGs), on par with or even ahead of economic ones such as growth and increasing profitability. Some business model frameworks indicate that this will have an effect on approaches to value creation and delivery, but the mechanisms are not well developed. We therefore aim to initiate and develop the concept of business models for SRFEs further by focusing on integrating non-economic personal goals of owners with value creation in their business models