benefit for people then one is speaking of social business – innovative ... Prize
Laureate Professor Muhammad Yunus developed the social business idea and ...
Short Presentation of Social Business, Professor Muhammad Yunus and Grameen Creative Lab
The model of Social Business
Social Business - Businesses that simply do good ³,DPSURSRVLQJWRFUHDWHDQRWKHUNLQGRIEXVLQHVVEDVHGRQVHOIOHVVQHVVWKDWLVLQDOORIXV,DPFDOOLQJLWVRFLDOEXVLQHss.´ Professor Muhammad Yunus Business rethought and done another way: if entrepreneurial undertakings do not seek maximum profits but rather maximum benefit for people then one is speaking of social business ± innovative business models that are consistently focused on finding solutions to social problems. In short: businesses that simply do good. Nobel Peace Prize Laureate Professor Muhammad Yunus developed the social business idea and elucidated his concept by summarizing it through a presentation of seven basic principles.: 1. Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which threaten people and society;; not profit maximization 2. Financial and economic sustainability 3. Investors get back their investment amount only. No dividend is given beyond investment money 4. When investment amount is paid back, company profit stays with the company for expansion and improvement 5. Environmentally conscious 6. Workforce gets market wage with better working conditions «GRLWZLWKMR\
The model of Social Business
His concept is not the product of drab theory but rather of life experience. Grameen Bank in Bangladesh, which was founded by Prof. Yunus, provided the poor with a new outlook on life by giving them small loans on fair conditions. It is properly referred to DVWKH³PRWKHU³RIDOOsocial businesses: financially independent, economically sustainable, and successful in pursuing its social purpose A success story that started with $27 The story begins: a bank for the poor The success story of social business in our times began with a truly insignificant amount of money ± equivalent to only $27. In the middle of the 1970s Prof. Muhammad Yunus loaned this amount to 42 basket weavers in the village of Jobra in Bangladesh, in order to free them from the local loan sharks and to enable them to establish an independent economic existence. Prof. Yunus, who had studied in the United States and had received his doctorate there, had just returned to the newly founded and profoundly impoverished Bangladesh. He recognized that the theories he was teaching in his role as an economics professor did not provide a solution that would relieve people from their misery and therefore looked for more practical solutions. The successful business model of the Grameen Bank GHYHORSHGRXWRI3URI
