Key activities are the enabling repeatable action patterns a company must perform to deliver its value proposition (Osterwalder & Pigneur, 2010). In commercial organizations the most important function is to create value for which customers are willing to pay, achieved through the configuration of internal and external activities (Osterwalder & Pigneur, 2002). This set of internal and external activities is called the value chain (Porter, 1985). In recent years value chains have become important, as more companies look to add value. Value chain analysis has been used to evaluate a firm’s strategic activities and its impact on costs and value (Golicic & Smith, 2013). The value chain is composed by a number of interdependent activities which are connected by linkages (Porter, 1985). Some examples in a social entrepreneurship context include:
Procurement of Supplies
The procurement of supplies from disadvantaged suppliers, environmentally sustainable sources and or other social enterprises creates new sources of income for these suppliers integrating them to the economic cycle. This contributes to poverty reduction and multiplies the benefits of economic growth such as better access to education and health care (Sommerrock, 2010). In the case of tourism and hospitality industries, if the economic multiplier is strong for the destination, the SE will rely as much as possible on local supplies and provide substantial positive economic and social impacts.