Nobel peace prize laureate professor Dr. Muhammad Yunus is the founder of microcredit and social business. His groundbreaking work in introducing collateral free loans for the poor in Bangladesh was formalized into a specialized bank for poor in 1983 called Grameen Bank (Rural Bank) fueled by the belief the credit is a fundamental human right. his objective was to help poor people escape from poverty by providing loans on terms suitable to them and by teaching them a few sound financial principles so they could help themselves.
From Dr. Yunus' personal loan of small amounts of money to destitute basket weavers in Bangladesh in the mid 70's, the Grameen Bank has advanced to the forefront of a burgeoning world movement toward eradicating poverty through micro lending. Replica of the Grameen Bank model is being operated in more than 100 countries worldwide. today, Grameen Bank itself lends to more than 8.4 million people in virtually every village in Bangladesh.
other than the work in the field of micro finance, professor Yunus is also known as the father of social business in idea which has gone from being theory to an inspiring practical. Social business which are non dividend companies established to solve social problems are emerging as a real alternative to traditional from of philanthropy and CSR (Corporate Social Responsibility) as an effective way to effect sustainable social change.
social business following Professor Dr. Yunus's ideas have developed in Bangladesh, Japan, Germany, Haiti, Colombia, India, Albania, and many other places in the world. This business tackle poverty, access to clean water, healthcare, employment creation, nutrition, the list is endless. Many developing countries suffer from various forms of negligence deprivation and lack of opportunities to create a meaningful and decent life for themselves. There is widespread shortage of schooling, healthcare, sanitation and absences of effective mechanism for employment generation. In this modern day of science and technology and vast movement of capitals such dark holes in the society are unacceptable. in the words of Dr. Yunus it is the opportunity or lack of it that shapes a mans future.
people have unlimited capacities and only few people try to utilize their potential capabilities. Dr. Yunus says" Making more money more funny" and poor people do not look for charity instead of looking new ideas. so that social business can address the all social problem which are spread all over the developing countries. People really rely on government but government does not have enough fund to distribute poor people but private public partnership can help to establish public fund and invest for social business. Social business ideas is very well ideas to lending money for poor people without any collateral. private and public financial institution only work for dividend and it will not help to the grass root level like as poor people. Pro. Dr. Yunus already has experimented his beautiful and innovative ideas to serve poor and beggar also. More than fifty five thousands beggars have been transforming their life through social business, they there owning their business and severing as a entrepreneur. so that ideas can change the life and career of the people. if social business ideas replicated in poor places it will be better to transform the life of disadvantage as well as weaker section of the society.
In a social business, the investors or owners or entrepreneur can gradually recover the money invested, but cannot take any dividend beyond that point. The purpose of the investment is purely to achieve one or more social objectives through the operation of the business or company, since no personal financial gain is anticipated by the owners. The company must cover all costs and make revenue, but at the same time achieve the social objective. The impact of the business on people or environment, rather than the amount of profit made in a given period measures the success of social business. Sustainability of the company indicates that it is running as a business.
Principle of Social Business :
· Social Business objective will be to overcome poverty, or one or more problems like as education, health, technology access, and environment, which threaten people and society; not profit maximization
· Financial and economic sustainability
· owners get back their investment amount only; no dividend (surplus or bonus) is given beyond investment money
· When investment amount is recover, business profit stays with the company for enlargement and upgrade
· Environmentally conscious
· Workforce gets market wage with better working conditions
· Do it with joy
Significant changes are occurring in the field of social enterprise, including major developments in the flow of funding, growing but often unexploited philanthropic resources, and a shift in the role of government, as well as new social investment models and impact measurement tools. All of these phenomena are occurring against a larger framework of demographic and market change as boundaries impression among the traditional nonprofit, for-profit, and public-sector silos. Currently, the sector remains on the brink of several possible futures, including consolidation, entrepreneurial growth, and expressive experimentation.
in conclusion, social business is for the poor people who do not have adequate resources to improvement for their life. just educate the poor people and lends money without any collateral and recover after business. people would love this fantastic and funny ideas in the words of Dr. Yunus.