Short Presentation of Social Business, Professor Muhammad Yunus ...

64 downloads 1256 Views 401KB Size Report
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