Smart cities face challenges in delivering effi cient and sustainable urban services. Traditional approaches struggle with fi nancial sustainability, stakeholder alignment, and innovation adoption. Integrating technology requires structured strategies to align services with citizen needs, secure long-term funding, and manage resources while ensuring compliance with regulations and enhancing urban living. To address these challenges, the learning unit proposes employing robust business models. These models provide a structured framework for defi ning value, ensuring fi nancial sustainability, optimizing resources, and facilitating stakeholder collaboration. They help anticipate challenges, manage risks, and drive the successful adoption of smart city initiatives to improve urban quality of life. This learning unit educates on applying business model frameworks in smart city contexts. It includes theoretical foundations, applied learning through case studies, and participatory activities such as concept matching using Business Model Concept Cards. These elements inspire practical understanding and adaptability of business models, focused on fostering sustainable urban development in smart cities.