The Social Ecosystem which prefers exploring entrepreneurial ideas that address social issues, enhance the environment, sustain development and transform the developing world publishes the following article by Raj Melville titled Professor Muhammd Yunus, Social Business and Future of Capitalism.

Earlier this year, Nobel laureate Prof. Muhammad Yunus was the invited guest speaker at MIT’s 142nd commencement. In his prepared remarks to the students he outlined how he started microcredit thirty plus years ago from a simple desire to free villagers near his university in Chittagong from the penalizing interest that they paid to moneylenders. Read the rest of this entry »

Follow in You Tube Dr. Muhammad Yunus’ idea on social business

Social business

From Wikipedia, the free encyclopedia

A social business is one which aims to be financially self-sufficient, if not profitable, in its pursuit of a social, ethical or environmental goal. Examples of social businesses in the United Kingdom included The Ethical Property Company, Divine Chocolate and Fair Finance. A more famous example is the Bangladeshi Grameen Bank, set up by Professor Dr. Muhammad Yunus in 1983. Dr. Yunus is a key proponent of the social business model, seeing it as a means to eradicate poverty and to influence the future of capitalism. However, his definition specifies that profits cannot be distributed to investors and must instead be ploughed back into the business or the community it serves. Definition

Definition:

Social businesses can be defined as follows:

Social Businesses seek to profit from acts that generate social improvements and serve a broader human development purpose. A key attribute of social businesses is that an increase in revenue corresponds to an incremental social enhancement. The social mission will permeate the culture and structure of the organization and the dual bottom lines – social and economic will be in equal standing with the firm pursuing long term maximization of both.<a title=”1″ Read the rest of this entry »

Cholmes writes in ‘Into The Pudding’ his thoughts on social business:

A month or two ago I came across an amazing piece by Muhammad Yunus, where he introduces the ‘Social Business’. I do hope the meme builds momentum, and I’m hoping my ‘dot-org‘ concept can grow to be the technological sector of the social business world. It’s a great narrowing of the term ‘Social Enterprise‘, which I feel has almost been too broadly adopted so as to become less meaningful. I’m looking for a more narrow focus – entities that are fundamentally both in service of a mission and operated to draw income from the market, not from charity. He articulates this better than I’ve seen before, with his full cost recovery social business – leaving behind the dependency of a charity, one enters the business world with ‘limitless possibilities’.

I especially liked his points about a Social Stock Market, that it needs to be a set of separate concepts, with different measures and media outlets. But I find his ideas on how to get there a bit weak – having a design competition that rewards the best ones with funding. He also suggests that someone soon could just hatch a Social Stock Market, and a little research found that Rockefeller is already moving to fund one. But I’m fearful that it’s too much too soon, and that a bunch of not so great social enterprises will give it a bad name. Read the rest of this entry »

In Santa Barbara Independent Richard Appelbaum noted an interview with the the man who is creating a world without poverty:

Muhammad Yunus is the winner of the 2006 Nobel Peace Prize or his path-breaking work in bringing microcredit (tiny loans for small businesses) to millions of impoverished Bangladeshis through the creation of the Grameen Bank.

The idea for microcredit began in the early ’70s, when Yunus — an economist from Bangladesh’s Chittagong University — led his students on a field trip to a poor village, where they interviewed a woman who made bamboo stools. Yunus learned that she had to borrow money at rates as high as 10 percent per week for the bamboo she used — a cost that left her with only two pennies a day as her total income. Had she been able to borrow under fair conditions, she would have been able to amass an economic cushion and rise above a subsistence level. Read the rest of this entry »