Business

Community-Based Business

Lea Sokol

30 Sep 2025 — 2 min read

(Papekites, 2022)

Transforming Business with Community-Based Models by Natalie Brite (2022) examines how community-centered business models can revolutionize traditional business approaches.

As a business owner or entrepreneur, your choice of business model should align with your organization's core values, mission, and vision. One increasingly popular option is the community-based business model, often referred to as a Social Enterprise. This approach is gaining attention as society grows more interested in connection, collaboration, support, and advocacy. Social entrepreneurs who adopt this model not only focus on profitability but also on making a positive impact on people and the planet.

The events of 2020 and 2021 marked a significant shift in business practices, driven by collective activism and a heightened demand for social and environmental change. Consumers are now holding businesses accountable for their role in promoting collective well-being, reflecting a desire for organizations to integrate people and the planet into their practices. Community-based business models are a powerful way to embrace this responsibility and effect meaningful change…

The primary distinction between traditional businesses and community-based enterprises lies in their end goals. Traditional business models often prioritize profit above all else, leading many advocacy-driven business owners to feel misaligned with their goals. Community-based models, on the other hand, are designed to make a genuine difference, emphasizing the interconnectedness of all things and striving to improve social and environmental conditions.

Community-based businesses are ambassadors for social, economic, and environmental change, structuring their operations to support these causes. They are not just about projecting social responsibility but actively practicing it. This shift away from traditional profit-driven models allows for a more meaningful engagement with community and environmental issues. (Brite, 2024)

Businesses that adopt community-based attributes are seen as more engaged with the community than those with traditional business models. As banks' business models tend to be more traditional than community-based models, it can seem as though they prioritize profit above all else, and their company values can get lost.

Community-based businesses focus on co-creation and collaboration. They are socially and environmentally responsible, emphasizing reinvestment in the community to strengthen it. These businesses are people-centered, valuing collaboration, partnership, and advocacy. They often function as Social Enterprises, although they can vary widely in structure.

Key Characteristics of Community-Based Businesses:

Structured around contributions to the community.

Focused on achieving social and environmental objectives.

Driven by a desire to improve life quality for people and the planet.

Success is measured by positive impact rather than profit.

Profits are reinvested into the community. (Brite, 2024)

While it may be challenging for a bank to fully become a community-based business, I think Huntington could apply some community-based characteristics; They could achieve social objectives and create a positive impact on the community. Huntington could execute this in a few ways: online communities, collaboration options, community events, and community outreach projects. Applying community-based characteristics to Huntington’s business model can be a unique and revolutionary way to change modern banking. If Huntington implements some of these characteristics into their business, it can push the company closer to their goal of making a positive impact on people and communities.