Rural social enterprises and social innovation during COVID-19 in Indonesia: the role of business model transformation

The COVID-19 pandemic has sparked interest in how social innovation arises during crises and fosters resilience in rural areas, particularly in the Global South. This study investigates how changes in the business model of social enterprises stimulate rural social innovation during the COVID-19 pandemic in Indonesia. Using a double case study, two villages with different social enterprises and rural socio-economic backgrounds are examined. We find that adapting business models in social enterprises helps convey their societal significance to the community. Balancing economic and social missions in the business model is crucial for sustainability and fulfilling social goals.