KARIN JESUIS

(Joubert-Rheeder)

UM58587BBU67597

Seminar Administrative Development I

In part fulfillment of Masters in Business Management

“BUILDING SOCIAL BUSINESS:

THE NEW KIND OF CAPITALISM

THAT SERVES HUMANITY’S MOST
PRESSING NEEDS”
Muhammad Yunus

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2
TABLE OF CONTENTS

Introduction.............................................................................................................................................................4

Synopsis: Mahommad Yunus and Building a Social Business.............................................................................4

Definition of Social Business................................................................................................................................... 4

Principles of Social Business................................................................................................................................... 5

Grameen Bank developments...................................................................................................................................6

Benefits of Social Business.......................................................................................................................................7

Conventional Business Model vs Social Business Model........................................................................................ 8

Social Entrepreneurship Today and Will it Shape the Future?..........................................................................10

Social Entrepreneurship – an Introduction........................................................................................................... 10

Synopsis of: Building Social Business................................................................................................................. 10

What is a social business?..................................................................................................................................... 10

Social business as an innovation in business models.......................................................................................... 11

Step 1. Challenging conventional wisdom............................................................................................................. 12

How did the Grameen Bank innovate the banking/microfinancing industry to benefit the poor?....................... 13

Step 2: Finding suitable complementary partners.................................................................................................13

As per illustration: Grameen Bank and Telenor partnership..........................................................................14

Step 3: Willingness to strategically adapt and Experiment................................................................................... 14

Step 4: Favoring social profit-oriented shareholders............................................................................................15

Step 5: Specifying social profit objectives clearly................................................................................................. 16

The social business profit model...........................................................................................................................16

Conclusion.............................................................................................................................................................17

Bibliography...........................................................................................................................................................18

Works Cited............................................................................................................................................................20

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INTRODUCTION

Our modern economic models might bring prosperity to developing counties with emerging
markets, but it leads to a growing unequal distribution of wealth. The circumstances which
triggered the start of the Grameen Bank in 1976, has not much changed. Millions of people
are still deprived of economic opportunities, are submitted to unfair employment practices
and wages, and lack access to basic services. The formation of the Grameen bank pioneered
micro-financing and created more than 20 businesses designated to alleviate poverty. The
Grameen Bank has become an expert in developing models for social businesses, by
changing the existing value propositions and profit formulae.

In the efforts to solve the social and economic injustices more and more social businesses are
formed, but unfortunately these efforts often follow a short-term approach which lacks the
necessary vison, resources and knowledge for high impact and sustainability. They fail to
create local capabilities and capacity to support the communities that are at risk of social and
economic exclusions, over the long term.

This assay will look at the pioneering efforts of Muhammad Yunus by establishing the
Grameen Bank, the lessons learned and how to adapt new models to be sustainable in the new
technology era.

The assay will give a short synopsis of the book, Building Social Business: the New
Capitalism that Serves Humanity’s most pressing needs, exploring the expansion of
businesses on this model, a critique and lessons learned, to enable the author to present some
options to a solution that will suit a larger part of the economic marginalized.

SYNOPSIS: MAHOMMAD YUNUS AND BUILDING A SOCIAL BUSINESS

DEFINITION OF SOCIAL BUSINESS

Yunus defined a social business, in his book, as a business: (Yunus M. , Creating a World
Without Poverty: Social Business and the Future of Capitalism, 2009)

“Created and designed to address a social problem. A non-loss, non-dividend company, i.e.

It is financially self-sustainable and

Profits realized by the business are reinvested in the business itself (or used to start other
social businesses), with the aim of increasing social impact, for example expanding the

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company’s reach, improving the products or services or in other ways subsidizing the social
mission.”

It is dedicated to a predefined social cause. (Yunus M. , Building Social Business: The new
Kind of Capitalism that Serves Humanity's Most Pressing Needs p2, 2010)

Muhammad Yunus came up with the concept of, social business, after realizing that poverty
is not created by the poor but rather through the systems that were build, the institutions that
designed and the resulting concepts that were formulized. (Yunus M. , Building Social
Business: The Kind of Capitalism that Serves Humanity's most Pressing Needs, 2010) He
guaranteed loans for the poor at no interest rate, these loans were repaid weekly in a collateral
free micro-credit/micro-finance scheme. This was the start of the Grameen Bank (1976),
which today has a borrower base of over 8 million, of which 97% are women, with a
collective savings of over US$670.27 million. (www.grameen-info.org, 2018). In 2006,
Muhammad Yunus won the Nobel Peace Prize.

PRINCIPLES OF SOCIAL BUSINESS

An underlining principle is that the loan should benefit the whole family in securing food and
education, through experience Grameen Bank had learned that women fulfill this principle
better than the men because of cultural practices. By putting the women in charge of
household finances, many of them began small businesses and became known as the
“Grameen Ladies”. Yunus refer to the ensuing change in the community as “counter culture”
where the Grameen Ladies created a positive impact on their families and community and
gave them a higher social status.

The fundamental principle of this book is that Social Businesses puts those that are being
served in the position of being an active participant in the economy by encouraging them to
be entrepreneurs, against charities that create a dependent culture.

Yunus belief that through entrepreneurship the gifts and talents that every person is born with
will benefit society at the right time, given the opportunity. Poverty strangles this potential, a
loss to the world.

Unlike traditional capitalism, social business sees people as multi-dimensional in which self-
interest exists, but the characteristics include caring for the society and world as a whole.

On page 3 of his book her refers to the 7 Principles of Social Business, these were developed
with Hans Reitz, co-founder to the Grameen Creative Lab. They are: (Yunus M. , Building
Social Business: the new capitalism that serves humanity's most pressing needs, 2010)

o 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.
o Financial and economic sustainability

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 o Investors get back their investment amount only. No dividend is given beyond
investment money
o When investment amount is paid back, company profit stays with the company for
expansion and improvement
o Gender sensitive and environmentally conscious
o Workforce gets market wage with better working conditions
o Do it with joy

According to Yunus the ground principle for a social business to be successful is that the
owners must stay committed and never take any dividend beyond the return of the original
amount they invested.

GRAMEEN BANK DEVELOPMENTS

The Grameen Bank has different types of loans – interest free, low interest, education loans,
housing loans for the poor, Micro-Enterprise loans and even loans for beggars. Other
services include: Life Insurance, deposits, pension fund borrowers.

The Grameen Group was formed in 1983 which is network linked to the Bangladeshi
Grameen Bank (Grameen means village). To date 68% of the borrowers have crossed the
poverty line. Repayment rates is 98,02% with returning a profit every year since inception,
except for 3 of the years. (www.grameen-info.org, n.d.)

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Fig 1. Source https://socialbusinessearh.org

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1) Grameen Phone Ltd.
2) Grameen Telecom
3) Grameen Communications
4) Grameen Cybernet Ltd.
5) Grameen Software Ltd.
6) Grameen IT Park
7) Grameen Information Highways Ltd.
8) Grameen Star Education Ltd.
9) Grameen Bitek Ltd.
10) Grameen Uddog (Enterprise)
11) Grameen Shamogree (Products)
12) Grameen Knitwear Ltd.
13) Gonoshasthaya Grameen Textile Mills Ltd.
14) Grameen Shikkha (Education)
15) Grameen Capital Management Ltd.
16) Grameen Byabosa Bikash (Business Promotion)
17) Grameen Trust

BENEFITS OF SOCIAL BUSINESS

One cannot expect the government and corporates (in their Corporate Social Responsibility
Programs) to tackle the question of poverty by themselves as their inherent make up is vested
interest in maximizing their own special interests and profits respectively.

Introducing Social Business into the community governments will be able to solve problems
with assistance of the stakeholders in Social Businesses. On the corporate side business
competition will be enhanced with more diversity in goods and services. The existing
economy will be revitalized as the creativity of people are stimulated and social businesses
are not that vulnerable to market fluctuations.

In the establishment of Social Businesses culture if often challenged and it often changes to
fit the new way of doing things. The Danone/Grameen Bank venture (which is done in rural
areas) a new approach led to bigger sales, the company had to train women in the community
as sales people, even if they were not a borrower, sometimes the permission of the husband
had to be sought. The outcome was that once the husband was educated in what his wife’s
business entails and the benefits it brought, the women became more comfortable and sales
increased. The criticism that these practices are culturally incentive was countered by Yunus
saying that if a culture is stagnant is belongs in the grave. Culture is dynamic and adjusts with
changing times.2

2
Yunus, Mohammad; Building Social Business: The kind of Capitalism that serves Humanity’s most Pressing
needs. 2010, p.66

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Yunus explains in his book that to be a successful social entrepreneur you must remember the
following: (Yunus M. , Banker To The Poor: Micro-Lending and the Battle Against World
Poverty, 2008) Be flexible but never lose sight of your original goal, ask for help or take any
help that you can get, keep close to the community that you intend to serve. Take advantage
of different opportunities in different market, always remember to question your assumptions,
this will broaden your perspective on economic opportunities. According to Yunus everyone
has what it takes to start his/her own social business, you need some of these essential
attributes: creativity, Entrepreneurial spirit, the desire to make the world a better place and
the ability to put the ideas into action, most of all a strong work ethic and be open to do
things in a new way.

Multinational Companies (MNC) is starting to show interest in the concept of Social

Business as the pressure of Corporate Social Responsibility and the UN Sustainability
Development Goals 3are busy to gain ground. (UNESCO, 2015) This is an active
participation by world corporate to fight poverty. Although companies preach the triple
bottom line (financial, social and environmental) the most important bottom line is financial
profit.

Some pioneering established companies are pro-active in their Corporate Social

Responsibility (CSR), and have turned to Grameen Bank for partnership. These are Grameen
Phone – a partnership with Telenor (the Norwegian telecommunications company), who
provide a phone service in their villages through the “Grameen telephone ladies”. A person
can borrow a phone for a short time, assisting them in avoiding to having made costly
handset purchases. Grameen Veolia is a co-development with Veolia Water (one of the
world’s leading water service providers), this is a simplified surface water treatment system
for rural populations. Access to clean drinking water eradicates many challenges of poor
communities. Grameen Danone is a collaboration with Danone, a health food company that
offers easily available dairy products that were developed for children. The yogurt is
developed locally and distributed door-to-door by Grameen Ladies.

“The story behind each of these ventures is of the gradual emergence of the social business
concept: a self-sustaining company that sells goods or services and repays its owners’
investments, but whose primary purpose is to serve society and improve the lot of the poor.”
The Grameen Bank has reached 300 million people in 2017. (Economic Times, 2017)

From the above one can see that concepts of capitalism and social business can be combined
for a better society.

In figure 2 below a schematic comparison on Social Business and Conventional business as

seen by the 3 collaborations between Grameen Bank and traditional MNCs.

CONVENTIONAL BUSINESS MODEL VS SOCIAL BUSINESS MODEL

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Goal #10: Reducing inequalities. To sustain income growth of the bottom 40% of the population …shared
prosperity.

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(Yunus & al, Lessons learned from Grameen Bank, 2010)

Grameen Partner Conventional Business Model

& Sector

Value Proposition Value Constellation

Telenor, telecoms Sale of monthly package (phone and Construction of a wireless network
airtime) to individual consumers Sale of package through retail

Veolia, water Maximum water quality Water treatment factories with high level
services Distributing water through taps of technology, recycling and purifying
located inside people's homes water

Danone, dairy High-end products Centralized purchasing and production

products Emphasis on lifestyle (economies of scale)
Strong brand name through Logistics towards distribution platforms
advertisement Sales through food retailers
Storage by end customer

Social Business Model

Value Proposition Value Constellation

Telenor, telecoms Caller borrow a phone when needed Construction of a wireless network
and pays per minute Grameen Ladies own telephones, buy
discounted airtime in bulk and sell minutes
to users as needed

Veolia, water Water quality that meets World
services Health Organization standards (rather
than US or EU standards)
Village water fountains
Prepaid card system
Construction of simplified water plant to
recycle surface water
Construction of the water supply network
towards the fountains New
distribution channel for isolated locations:
rickshaws driven by Grameen Boys

Danone, dairy Low price Local supply of raw products

products Fulfillment of basic nutritional needs Local production
Grameen brand image Direct door-to-door sales by Grameen
Ladies
Limited storage by end consumer

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SOCIAL ENTREPRENEURSHIP TODAY AND WILL IT SHAPE THE FUTURE?

SOCIAL ENTREPRENEURSHIP – AN INTRODUCTION

Social Business was defined in the assay according to Yunus, but it takes a social
entrepreneur to seize these opportunities. A social entrepreneur (SE) is someone who uses a
social problem to bring about transformation, using entrepreneurial principles with the intent
of creating social capital not essentially focused on profit alone. The focus of these
businesses is to have an impact on social or environmental goals that influences or will
influence present and times to come.

Several entrepreneurs established social businesses to bring about positive change to society,
Vinoba Bhave – the founder of India’s Land Gift Movement; Florence Nightingale - founder
of first nursing school Robert Owen – the founder of cooperative movement. These
enterprises were established in the 19th century before social business was used in
management terms. Today social businesses and social entrepreneurs are well known figures
- Muhammad Yunus, Grameen Bank; Bill Drayton, Ashoka; Jyotindra Nath - Youth United;
Ramakrishna and Smita Ram - Rang De; Nick Reder, Roozi, to name but a few. (Spruijt,
2012)

SYNOPSIS OF: BUILDING SOCIAL BUSINESS

WHAT IS A SOCIAL BUSINESS?

A Social Business can be defined as a business with a goal of addressing a social cause.
(Geissdoerfer & Vladimirova, Doroteya, 2018) The investment made by the investors is
entirely focused on contributing to the welfare of the community it wants to serve. The
investor gets his/her money back, but only the capital invested, after a certain time and cover
all the operational expenses of the organization, the primary focus is social profit.

A social business borrows from both the profit maximizing entities and non-profit
organizations, it has to cover the cost of their operations and their owners need to recover the
full amount invested. Social business is more cause than profit driven.

Muhammad Yunus’s Grameen Bank created a new system where profit making, and social
businesses exist simultaneously. Also, the social businesses are not prevented from making
profits. They are however not allowed to take dividends and reinvest the money earned as
profit in the business to scale operations and give maximum benefit to maximum people. The
concept of social business emphasizes an action-based system where the poor participates in
his / her growth.

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Diagram 1 below illustrates how social business straddles the economic field between profit
and non-profit.

Diagram 1: Long Range Planning, vol. 43, 2010, p. 313

The Social Entrepreneur creates a process that is innovative to combine resources and skills
to address or change an unequal social situation, through pursuing economic opportunities.
The center focus of these social businesses is to create social wealth rather than only profit,
the businesses can be both profit and not for profit initiatives. (Yunus M. M., 2010) Social
Entrepreneurs runs Social Businesses

SOCIAL BUSINESS AS AN INNOVATION IN BUSINESS MODELS

The concept of Social Business and Social Entrepreneur is getting more and more attention
around the world with many research papers being done. The definitions are many but in
each the elements of product/service for customers, the unique way the company is structured
to deliver its goods/services and the revenue model are common to all definitions.

Authors may focus only on one of the elements. Chesbrough and Rosembloom focus on
revenue model; Zott and Amit focus on the transaction between firm and its external
community. (Chesbough & Euchner, An Evolution of Open Innovation, 2010)

What do we offer our customer, who are they, and do they value what we offer? This is the
Value Proposition. The Value Constellation is the answer to this question – How do we
deliver this value to our customers? (Joao & Carvalho, 2015)

A schematic illustration of how the components interact is seen in Diagram 2 below.

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Diagram 2: Interaction of Value Proposition, Value Constellation and Profit Equation in Social Businesses

As for any capitalist business the social business’s own value chain has to fit and work like a
well-oiled machine with the network of suppliers and partners, this is the crux of whether the
venture translates into a positive profit equation. How is the value captured from the revenue
generated through the Value Proposition and how is the costs structured and the capital
employed in the Value Constellation equals the Profit?

As illustrated in Table 1, the Grameen Bank, building a Social Business requires a new value
propositions and new value constellations had to be developed to translate into a positive
profit equation.

How to build social business models

Innovation of a business model requires that one generates a new source of profit by finding
innovative value proposition/value constellation combinations.

STEP 1. CHALLENGING CONVENTIONAL WISDOM

When building Social Business extra care needs to be taken in making sure that the following
critical characteristics/thinking processes are possessed by the Social Entrepreneur.

The similarities between Conventional Business and Social Business are:

Challenging conventional wisdom and basic assumptions. (Grant, 2008) The establishment of
the Grameen bank had at the heart the very questioning of the established wisdom. Sufiya
Begum, a woman making bamboo chairs, were the first lender of the $27. This amount was
recuperated within 6 weeks.

Finding complimentary partners (Astebro & Serrano, , 2015)

Undertaking a continuous experimentation process. (Chesbrough, Business Model Innovation:

Opportunities and Barriers, 2010)

Specifics of social business models

Giving shareholder with a social profit an option to invest.

Be very clear about what the social profit objective is.

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HOW DID THE GRAMEEN BANK INNOVATE THE BANKING/MICROFINANCING INDUSTRY
TO BENEFIT THE POOR?

Value Proposition: making small loans sufficient to finance revenue generating businesses
like rice, husking, purchasing of rickshaws, buying milk cows, repairs to machines, cloth, etc.
very low interest rates are charged on these loans.

Value Constellation: Bureaucratic control is kept to the minimum. The local Grameen Branch
Manager visits the village to identify the prospective clientele, who has to form groups of 5.
The system works as follows: only once the two principal borrows begin to repay the loan
with interest within 6 weeks, can the rest of the group borrow. The principles that makes the
repayment rate almost 100% is based on group support, peer pressure, self-interest and the
motivation of borrowers. (Argyris & Schon, 1993)

Unlearning conventional wisdom is referred to as “double loop learning” (Hwang & Wang,
2016) The conventional banks could not unlearn standard banking assumptions, which
includes that a loan needs a collateral and that poor people do not possess the skill of
entrepreneurship.

STEP 2: FINDING SUITABLE COMPLEMENTARY PARTNERS

The success of Social Business depends directly on the amount of impact it has in the
community it wants to serve. The change has to be positive to the status quo. It is therefore
imperative that the Social Business is scrupulous as to the choice of business partners. In
these relationships the emphasis must be on cooperation and collaboration. (Alliances and
networks, 1998) The benefit is that partners can leverage resources, skills and knowledge,
to have a positive impact. The goal is to foster long-term relationships. (Brugmann &
Prahalad, 2007)

Social contact between people, groups or organizations creates a network of understanding

the challenges facing that specific community. These networks have a value when social
businesses need to be started. It has been proofed that these social networks also referred
to as Social Capital lead to increased productivity in individuals, teams and organizations,
this in turns lead to more confidence, fulfillment and positive relationships. World Bank
believes that social capital when utilized properly can enhance the efficacy and sustainability
of projects. (Adveenko & Gilligan, 2014) This in turn leads to prosperity, greater
transparency and increases overall accountability.

In finding a partner for Social Business emphasis should be placed on partners that will
bring/foster positive Social Capital as well. A negative example is Monsanto donating their
genetically modified seeds for agricultural projects for the rural poor, making the community
totally dependent on Monsanto for seeds, as the crops do not produce viable seeds to keep for
next harvest. (Simpson, 2016) Social Capital has 5 elements that has to be present for it to
have a positive effect, namely:

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1. Groups and Networks

2. Trust and Solidarity

3. Collective action and Cooperation

4. Social Cohesion and Inclusion

5. Information and Communication 4

AS PER ILLUSTRATION: GRAMEEN BANK AND TELENOR PARTNERSHIP

Grameen had no experience in the building of a wireless phone network and Telenor no
experience of developing world markets, especially in rural, poor areas. The partnering
created a strong barrier against new entrants. Such partnerships between businesses and not-
for-profit organizations can be highly productive and low in risk, as they take place between
partners who are not in direct competition with each other. (Andreasen, 1996)

STEP 3: WILLINGNESS TO STRATEGICALLY ADAPT AND EXPERIMENT

As in any business strategy is critical, but even more so with Social Business as the business
is geared toward remedying a social ill and not worsen it. It is usually best strategy to start
small and expand, corporate management tools and research can assist in finding new
outcomes. Some experimentation will be necessary at some or other point as the corporate
management tools and research have not always encountered the challenges of the issues
being addressed. Experimentation does not mean intuition, but it means to have the ability
(intention) to make changes when needed.

Figure 2 (Doris, 2011)

Is a summary of the strategically adaptability of the Grameen Bank and its partners.

Building a Social Business

Step 1: Challenge Conventional Wisdom Step 2: Finding partners Step 3: Willing to

strategically adapt &
experiment

4
www.managementstudyguide.com/socialentrepreneurship-article.htm 2017

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 Basic Assumption New way of doing

Grameen Phone Buying power in the The handset can be Telenor Grameen phone
developing countries is too rented, rather than extended network step
low to build a profitable owned by step
wireless network

Grameen Veolia IN developed countries
water is treated in High
tech factories so as to be
sage and is distributed
inside people's home
Water has to reach Veolia - global leader in Finetuning of the model
minimal WHO standard; it water distribution in Goalmari
can be distributed in
public fountains

Grameen Danone A yoghurt can only be Local production and Danone - one of world First plant in Bogra -
affordable if produced in door-to-door distribution leaders in health foods serving families in 30km
large quantity and leads to availability and radius
distributed through retail affordability

STEP 4: FAVORING SOCIAL PROFIT-ORIENTED SHAREHOLDERS

Grameen Danone is the world’s first multinational consciously designed social business, it
has a social mission, but the financial goal is for profit.

More and more multinationals are keen to work closely with development countries to
execute their CSR but even if the projects are small, the corporate still need funds. Danone –
to build a factory, Telenor – discount in handset and airtime, Veolia – construction of water
purification machines and ducts to village fountains.

Shareholders and owners expect the highest profit, to reduce profit so that a social issue can
be addressed might leave owners and/or shareholder with a feeling that they can do better
somewhere else.

“Corporate social responsibility could be viewed as corporate financial irresponsibility unless

financial profit-oriented shareholders can be shown that the incurred costs will turn into a
positive cash flow in the medium or long term. This leads to introducing shareholders to the
social business model and gain their acceptance. In building social business models, the value
proposition and the value constellation must be constructed through innovative links between
all stakeholders, including shareholders.” (Bryan, 2015)

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STEP 5: SPECIFYING SOCIAL PROFIT OBJECTIVES CLEARLY

As with any business the vision and mission should be established and everyone as a
shareholder, stakeholder and employees should understand and buy into the strategy to get
there. Over time in any collaboration differences can occur, as in the case of Grameen
Phone and Telenor. The Grameen Group’s vision was to convert Grameen Phone into a
social business by giving the poor the majority of the shares so that they could benefit from
the huge profits, but Telenor refused to sell its shares. To avoid this risk Grameen Danone’s
mission was developed in detail and established in the beginning of the project.
(Communities, 2009)

To build a social business with a business model where social/cause profit is the focus is only
possible when shareholders are involved which is of the same mindset. The project is
complex as it not only focusses on financial profit but profit for all stakeholders. Grameen
Danone’s mission statement reads as follows:

“to bring daily healthy nutrition to low income, nutritionally deprived populations in
Bangladesh and alleviate poverty through the implementation of a unique proximity business
model” (Yunus M. , A WORLD OF THREE ZEROS The New Economics of Zero Poverty,
Zero Unemployment, and Zero Net Carbon Emissions, 2017)

A few facts from the Grameen and its partner businesses as a social business:

1. Businesses becomes fully sustainable – cover operational costs

2. BusiNutritional profit – Shoktidoi yoghurt naturally contains calcium and proteins.
3. Employment profit – one person farms, factory workers, distribution network
4. Grameen Danone – will create 3 000 micro farmers
5. Bogra factory – uses local labour instead of machinery
6. Grameen Ladies – collect loan repayment and interest, selling Grameen phone
time, distributing the yoghurt.
7. Grameen Danone – the cup is biodegradable in the local climate, the rikshaws use
for distribution use no natural gas or oil.

THE SOCIAL BUSINESS PROFIT MODEL

Taking the Grameen Group’s experiences in building Social Businesses and the profit models
they developed one can identify the change of mind that has to occur to achieve success. It
follows that:

The value proposition and constellation are not solely focused on the customer but on all the
stakeholders.

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The desired social profits have to take into consideration the total business resulting in a
social profit equation.

It is important to remember that the profit equation targets not financial profit maximization
but only full recovery of operational cost and of capital sum invested.

These changes are illustrated by Figure 3

Social Business can also be applied to environmental issues such climate change to water
shortages

CONCLUSION

The Pioneer of Social Entrepreneurship: Mohammad Yunus 5 has shown the world on a
grand scale that Social Businesses are profitable according to the Triple Bottom Line and
impact the communities in which they operate in a positive way. The Grameen Bank alone
has impacted the lives of 300 million people by 2017.

The world needs Social Business and Social Entrepreneurs, they are primarily focused on
actualizing social value and social good and promoting social welfare.

Social Businesses create opportunities for income generation lifting people out of
poverty. Social Businesses are sustainable as operating costs and repayment of only
capital amount invested are covered from the business, the balance is reinvested into the
business.

5
Nobel Peace Prize in 2006, and his book Banker to the Poor and Creating a World without Poverty has
become a best-seller. Mirpur Two, DHAKA 1216, Bangladesh. E-mail: yunus@grameen.net

17
The latest edition of the World Economic Forum in Davos, had as its central theme the
responsibility of business towards social good and welfare outcomes. 6

Although the world is on the brink of destruction the building of Social Businesses is only in
the infancy stage, the rehabilitation of environment, the restoration of dignity to people,
building of infrastructure and services of clean water, air and good healthcare are only some
of the challenges mankind faces today. The topic has raised considerable actions from world
leaders, corporate giants and common citizens alike, from UNESCO’s 2030 agenda to
Mohammad Yunus, Richard Branson, Elon Musk, all putting social business resolutions on
the agenda.

The world needs more Social Businesses and Social Entreprneurs. There is hope.

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Yunus, M. (2008). Banker To The Poor: Micro-Lending and the Battle Against World Poverty. New York: Public
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Affairs.

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Needs p2. New York: Public Affairs.

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New York: Public Affaris.

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New York: Public Affairs.

Yunus, M. (2017). A WORLD OF THREE ZEROS The New Economics of Zero Poverty, Zero Unemployment, and
Zero Net Carbon Emissions. New York: Public Affairs.

Yunus, M. M. (2010). Microfinance. Long Range Planning, 43 , 325.

Yunus, M., & al, e. (2010). Lessons learned from Grameen Bank (Vol. 43). Kolkatta: Long Range Planning.

21