| Course | MT314 Social Innovation and Entrepreneurship |
|---|---|
| Unit | Unit 5 |
| Paper type | Social venture business model summary |
| Length | About 860 words, 6 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | BS in Business Administration |
| Updated | October 2026 |
Free sample paper for MT314 Unit 5
Who Benefits and Who Pays: An MT314 Unit 5 Business Model Summary for a Car Repair Social Venture
[Student Name]
Purdue University Global
MT314: Social Innovation and Entrepreneurship
Unit 5 Business Model Summary
[Instructor Name]
[Date]
The venture, its customers and all figures are composite; the frameworks, law and sources cited are real.
Customers and Beneficiaries
The model's core distinction is between customers, who pay for a service because it is worth the price to them, and beneficiaries, whom the mission exists to help. Yunus et al. (2010) describe social business models as redesigning the value proposition and value constellation so that a business can serve a social goal while covering its costs. Here:
Customers: public and private fleet operators, which buy maintenance; and employers, which buy a repair benefit for their hourly workers.
Beneficiaries: hourly workers whose cars break down. They also pay something, for parts and a reduced labor rate, but they are not the source of the margin.
Canvas in Brief
Osterwalder and Pigneur (2010) set out nine building blocks of a business model. Applied:
Customer segments: fleets; employers; hourly workers as beneficiary-customers.
Value propositions: fleets get reliable maintenance at market rates; employers get fewer lost workers; workers get a fast, affordable repair.
Channels: direct fleet contracts; employer HR offices; workforce center referrals.
Customer relationships: contracts with fleets; annual agreements with employers; a navigator for workers.
Revenue streams: four, below.
Key resources: six bays, four technicians, a service writer, lifts.
Key activities: fleet maintenance, diagnosis, subsidized repair.
Key partners: community action agency, workforce center, parts supplier.
Cost structure: below.
Year-Two Revenue: $710,000
1. Fleet maintenance: 58 percent, about $412,000. Market-rate work for the road department and two home-health agencies.
2. Employer repair benefits: 11 percent, about $78,000. Employers pay $9 per enrolled worker per month, $108 a year, for about 720 enrolled workers.
3. Worker payments: 19 percent, about $135,000. Parts at cost plus labor at $60 an hour.
4. Grants: 12 percent, about $85,000. Routed through the county community action agency for subsidized repairs.
How the Subsidy Is Paid For
The shop's full labor cost is about $95 an hour. Fleets pay the market rate, and fleet work earns a margin of about 31 percent after parts. That margin, together with employer fees and grants, covers the $35 an hour gap between the worker rate and the full cost on subsidized repairs.
Fleets pay for the bays, employers pay for the promise and workers pay for the parts; no single group pays for the mission alone.
Why Employers Pay
Employers interviewed estimated that replacing an hourly worker costs them about $4,700 in recruiting, training and lost productivity. A benefit costing $108 a year per worker pays for itself if it prevents one departure for every 43 enrolled workers. Two employers have signed letters of intent.
Why Workers Still Pay Something
The model could offer free repairs to referred workers, funded entirely by fleets and grants. It does not, for three reasons. First, a worker who pays part of the cost has a stake in the repair and in the follow-up appointment, which the pilot showed improves return visits. Second, worker payments, about 19 percent of revenue, reduce the subsidy the fleet margin must carry, which lets the shop serve more workers with the same bays. Third, the church ministry already offers free repairs to those who can wait. A sliding scale, set by household income and capped at the cost of parts plus $60 an hour, lets the venture serve workers who cannot wait for a Saturday slot while keeping the price well below a commercial shop's rate.
The risk is that some workers cannot pay even the reduced price. The navigator can draw on the foundation grant to cover the full cost for workers below a set income threshold, so no referred worker is turned away for inability to pay.
Main Costs
Four technicians at about $52,000 each with benefits: $208,000
Service writer: $44,000
Half-time navigator: $24,000
Rent on a six-bay building: $72,000
Lift and equipment financing: $31,000
Parts for fleet and worker repairs: about $190,000
Insurance, utilities, software and other: about $84,000
Total: about $653,000, leaving about $57,000 before taxes and reserves.
Legal Form
Nonprofit. Eligible for tax-deductible donations and most foundation grants. But fleet contracts are a large commercial activity, which may raise questions about unrelated business income, and nonprofit status cannot raise equity.
LLC. Flexible and simple. But nothing in its structure protects the mission if owners change or margins tighten.
Tennessee benefit corporation. A for-profit corporation whose directors must consider a stated public benefit alongside shareholders' interests, under Tennessee's benefit corporation law (Tennessee For-Profit Benefit Corporation Act, 2015). It can take loans and equity, and it writes the mission into governance.
Choice: Tennessee benefit corporation, because the model depends on commercial contracts, and the mission needs protection that an LLC would not give.
Risks
The county road department contract is the largest single source of revenue. If it ended, fleet revenue would fall by about half. The funding strategy in Unit 7 and the pitch in Unit 9 address this concentration.
References
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: A handbook for visionaries, game changers, and challengers. Wiley.
Tennessee For-Profit Benefit Corporation Act, Tenn. Code Ann. ยง 48-28-101 et seq. (2015).
Yunus, M., Moingeon, B., & Lehmann-Ortega, L. (2010). Building social business models: Lessons from the Grameen experience. Long Range Planning, 43(2-3), 308-325. https://doi.org/10.1016/j.lrp.2009.12.005
What the MT314 Unit 5 assignment asks for
In Unit 5 students summarize how a proposed venture will make and spend money. The summary should distinguish customers, who pay because the service is worth it to them, from beneficiaries, whom the mission serves. Instructors often expect a business model canvas or similar framework. Revenue should be projected by stream with percentages and amounts. The summary should explain how any subsidy is funded and why each paying group pays. Main costs should be listed. Many prompts ask students to compare legal forms, such as nonprofit, LLC and benefit corporation, and choose one with reasons. Risks to the model, especially concentration, should be noted. A one-page canvas and a revenue table usually support the written summary.
Inside the MT314 Unit 5 example
The sample opens with the customer and beneficiary distinction, citing Yunus and colleagues. The canvas section applies all nine blocks. Four revenue streams are projected for year two with amounts. A section explains the cross-subsidy, under the highlighted line that fleets pay for the bays, employers for the promise and workers for the parts. The employer case uses a $4,700 replacement cost. A section explains why workers still pay something, through a sliding scale with a grant-funded fallback. Seven cost lines total about $653,000. Three legal forms are compared, ending with a Tennessee benefit corporation. The risk of the county road department contract closes the summary.
Where the points sit in the MT314 Unit 5 rubric
Business model summaries are usually assessed on the clarity of who pays and why, the realism of projections, the logic of the subsidy and the reasoning behind legal form. Graders reward summaries that separate customers from beneficiaries. Revenue projections should be specific and add up. The subsidy mechanism should be explained, not assumed. Each paying group should have a reason to pay. Costs should be complete enough to show whether the model breaks even. Legal form should follow from the model. Frameworks and statutes appear in APA 7. Summaries that list revenue streams without amounts, or that rely on grants for most income without explaining why the venture is not simply a charity, tend to score lower.
MT314 Unit 5 help from the desk
Business model summaries often list many revenue ideas without saying how much each would bring. Another common weakness is failing to explain why customers would pay, especially when the beneficiary is someone else. Some students choose a nonprofit form without considering how commercial revenue would be treated. Costs are frequently incomplete. Before drafting, write down every group that would pay the venture and finish the sentence "they pay because..." for each one. If a sentence is hard to finish, that revenue stream is probably the weakest part of the model and needs more evidence before it appears in the projection. Checking that the revenue streams add up to the costs is the final test.
Get an MT314 Unit 5 example written to your instructions
Pass along the venture from your earlier units, the business model template your section uses, if any, and the rubric. The summary returns within 24-48h with customers and beneficiaries separated, revenue streams shared out, costs listed in full and a legal form chosen for a reason. A first custom sample is not invoiced, and it follows your own instructions. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
More MT314 papers and BS in Business Administration samples
- MT314 Unit 1: Social Venture Discussion Post
- MT314 Unit 2: Greyston Bakery Venture Analysis
- MT314 Unit 3: Social Problem Definition Brief
- MT314 Unit 4: Social Venture Theory of Change
- MT314 Unit 6: Seminar Reflection
- MT314 Unit 7: Funding Strategy Memo
- MT314 Unit 8: Impact Measurement Plan
- MT314 Unit 9: Pitch Presentation
- MT314 Unit 10: Venture Proposal
- MT313 Unit 5: Double Materiality Assessment
- MT304 Unit 5: Distributed Team Leadership Plan
- MT302 Unit 5: Job Characteristics Analysis
- MT300 Unit 5: Information Systems Vendor Comparison
MT314 Unit 5 questions, answered
Is the Business Model Canvas required?
Only if your section requires it. The canvas is common in MT314 because its segments make the customer and beneficiary split visible, and some sections use the Social Business Model Canvas, which adds impact boxes. The sample uses the template your prompt names, and falls back on prose with a revenue table if none is specified.
What legal form should a social venture choose?
It depends on how the venture will be funded. Nonprofits can receive tax-deductible donations but cannot sell equity; benefit corporations can raise investment while chartering a public purpose; LLCs are flexible but protect mission only by agreement. The example picks a benefit corporation because it must borrow. Your funding plan should drive the choice, and the sample explains the tradeoff.
Is B Corp certification required for a benefit corporation?
No. A benefit corporation is a legal form set by state statute; B Corp certification is granted by the nonprofit B Lab after verification against its standards, which it revised in 2025. A company can be one without the other. The example defers certification because fees and verification time outweigh the gain before the venture has any track record.
Where can I find a free MT314 Unit 5 sample paper?
The complete MT314 Unit 5 business model summary is on this page, showing how fleets, employers and workers fund a repair venture.
Why do employers pay in the MT314 Unit 5 sample?
Replacing an hourly worker costs them about $4,700, so a $108 yearly benefit pays off if it prevents one departure per 43 enrolled workers.