Abstract
Every enterprise makes use of a business model either explicitly or implicitly. A business
model is an abstract of a business plan and is complimentary to the firm’s business strategy.
It shows linkages within a business process as it transforms inputs into outputs, and how the
enterprise creates and delivers value to its customers. Through a case study research two
business models used by South African auto-body repairers were developed and analysed.
One is for auto-body repair shops that are recognised by the South African Insurance
Association, the panel system, and the other is not. The business models are presented as
causal loop diagrams. Design parameters used to describe the architecture were content,
structure, governance and complimentaries. These business models were used to explain low
margins experienced in this sector. The business model helps small enterprise
entrepreneurs, stakeholders in the automotive sector and policy makers to understand the
logic of auto-body repair shops.