BUILDING SOCIAL BUSINESS YUNUS PDF
Building social business: the new kind of capitalism that serves humanity's most pressing needs /. Muhammad Yunus with Karl Weber. p. cm. Includes index. Editorial Reviews. Review. CHOICE, September “In nine short, well-written chapters, Yunus provides genuine insight into global poverty and a unique. Building Social Business: The New Kind of Capitalism that Serves Humanity's Most Pressing Needs [Muhammad Yunus] on ecogenenergy.info *FREE* shipping on .
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PDF | Grameen bank, founded in , has both pioneered the development of micro-finance, and Muhammad Yunus, Bertrand Moingeon and . ﬁts our main purpose eof studying the building of social business models. Building social business: the new kind of capitalism that serves humanity's most pressing needs / Muhammad Yunus with Karl Weber. Pcm,. Includes index. Muhammad Yunus, Thierry Sibieude and Eric Lesueur, «Social Business and big business: innovative, promising idea is to help invent and develop new markets and economic .. Innovation from the inside ecogenenergy.info
The major goal of the Grameen program is to eliminate poverty, provide high returns to the people through their businesses, and also maintain a sustainable economy.
When the people pay back the loans, the profits gathered are invested back into the company. The organizations of Grameen are specifically aimed at promoting social business through charitable organizations as well as non-profit groups.
The Grameen Telecom is currently providing energy as well as the Grameen well-being services to the poor people which are also another form of providing aid to these people. Grameen in coordination with Pfizer have provided a program to provide health care that is affordable to the poor people through village clinics.
These are some of the concepts discussed by Yunus which can greatly help in the development of any business. The ideas could be applied to the poor and even the rich countries considering the fact that there is a population of poor people in each country Maresca, The book is extremely simple to read and the concepts and strategies discussed are simple to understand as well.
Despite the fact that Yunus begun his life as an educator, he does not at all provide his compositions like a simple scholar. Instead, his book is filled with handy illustrations, experiences, strategies, and thoughts, most especially in the chapter of how to launch a social business, where he over and over again discusses the importance of social businesses to be managed in the same way as any other profit-maximizing business.
Yunus additionally gives so many looks of the genius who is very convincing and who established the Grameen Bank, who alongside Yunus also acquired the prize of Nobel Peace in the year Yunus is adroitly aware of the ideas he has discussed as well as their quality, most especially to partners in substantial corporates.
Yunus sees extremely limitless outcomes and always empowers every individual he comes across. He was among the first people to see the capability of the people living in the poor societies that were not discovered.
Building Social Business
However, the book additionally accesses the genius who argues that each long excursion begins with a little stride Leonard, Yunus calls for making of an option economy of organizations which are aimed at providing aid to the underprivileged people. The way he imagines it, these organizations would be operated as proficiently as the revenue driven assortment.
Not at all like foundations, the organizations would profit to act naturally maintaining. Be that as it may, they would put extra cash in growing their philanthropic endeavors as opposed to paying profits to shareholders. As predicted by Yunus, individuals will be highly pleased to make organizations for benevolent purposes. Seminar Administrative Development I A Review and Critique His experience with large corporations says otherwise.
It makes small loans to the impoverished without requiring collateral. The purpose of this essay is to provide a summary and narrative synopsis of the book, highlighting the social business model, the two types of social business, the seven principles, and the lessons learned from social businesses that were established for the poor of Bangladesh.
The next part is a critique and review of social business itself, the concept,methods, and structure. A balanced perspective will be presented in praise and in criticism of the concept propagated by Yunus. There will be a brief discourse on the value of individual social responsibility, altruism, and pro-social behavior as precursors to structured charitable acts.
It is an enterprise that expounds on the selflessness of individuals. It is dedicated to solving social problems that tormented mankind for the longest time — poverty, hunger, disease, homelessness, ignorance.
He posited that if a small amount made such a big difference, then he should do it more often.
Today, Grameen Bank has a nationwide reach, serving 8 million borrowers in every single village in Bangladesh, and with a collective savings balance of half a billion U. Yunus believes that poverty is not created by the poor, but rather the systems that were built, the institutions that have been designed, and the subsequent concepts formulated.
Every human being is born fully equipped to take care of himself. Therefore, poverty represents an artificial and external imposition on a person, and as such can be eradicated.
It is with an optimistic note that Yunus envisaged that social business can bring about a fundamental change in the architecture of the predominantly capitalist economy, the fundamental flaw of which is the misrepresentation of human nature. Social business purports to free society from this flaw. Human beings though motivated by selfish objectives can also be influenced by an inherent selfless nature. In the field of economics, this nature has no room at all.
Time, energy, and money are spent on catering to the needs of for-profit businesses. Economics should serve both the selfish personal gain and selfless helping others intentions of the human being. A social business must be self-sustaining and generates income to cover the cost of its operations.
The investors can have a return only up to the money they have invested, but nothing more. The company can make a profit but no one takes the profit. The objective is to achieve social goals and no personal gain is desired.
The success of the business is measured on its impact to the people and the environment rather than on the amount of profit gained in a period of time. One may be skeptical on where the money will come from. From his experience, Yunus believes that people are happy to give money from their own pockets; also their talent, creativity, technological prowess, and time. In , Grameen partnered with the French dairy company Danone, for the purpose of reducing malnutrition among the children in rural Bangladesh.
The company Grameen Danone became a global role model and attracted the attention of the world. The Grameen Veolia Water Company delivered safe and cheap drinking water to the villages of Bangladesh where the water supply was contaminated with arsenic.
BASF of Germany via a joint venture agreement manufactured chemically-treated mosquito nets that dramatically reduced the incidence of malaria and other mosquito- borne diseases. Grameen Intel on the other hand, provides information technology services to remote areas, such as providing connectivity to facilitate healthcare services and diagnosis. Another German company, Otto GmbH, partnered with Grameen to set up a garment factory in Bangladesh for the economically-marginal people.
Being driven by humanitarian purposes rather than profit, social businesses have the freedom of maximising its scope with no pressure to earn from the owners.
Technology can also be maximised to enhance the solutions for social problems. Initiatives are proliferating in Europe and Japan to create social businesses, to provide equity or loans.
The source of pride in creating successful social businesses is not in the amount of money one amasses but from the pleasure of helping solve difficult human and social problems.
It gives everyone an opportunity to take part in creating and seeing a world that they want to see.
The role of governments cannot be over stated: Type I: A non-loss, non-divident company dedicated to solving a social problem, and owned by investors.
All profits are re-invested in expanding and improving the business. Type II: A profit-making business owned by the poor people who are the beneficiaries themselves. The business objective is to overcome poverty, or one or more problems that threaten society — not to maximise profit. The company will attain financial and economic sustainability. Investors get back only their investment amount.
No dividend is given beyond the return of the original investment. When the investment amount is paid back, profit stays with the company for expansion and improvement. The company will be environmentally conscious. The workforce gets market wage with better-than-standard working conditions. Do it with joy! The business types are summarized in the following table and contrasted with what a social business is: Foundation No specific Create social Governed by a Charitable ownership benefits board of organization E.
Building Social Business
A foundation is not self- sustaining and does not generate any income, unlike a social business. Non-governmental organizations Owned by a Often with a Relies on Non-profit, NGOs board or a socially charitable charitable group of relevant donations to organization; E. It treats its beneficiaries with a lot more personal dignity and autonomy. A social business differs vastly — it expands the market by giving options to consumers and entrepreneurs, gives a new dimension to the business world, and a renewed social awareness.
Here, Yunus makes a strong and important pronouncement: Common human decency forbids us to pursue this objective. The only right thing to do is to give poor people the means so they can extricate themselves from poverty.
Once they are no longer poor, by all means profit can be gained. Social business is about totally differentiating itself from the traditional definition of a business, to shun the priorities created for us by capitalism.
The developing nations are the foremost beneficiaries of a well-run social business. Having the systemic lack CIS Everyone is encouraged to start a social business from a simple idea, even if it means lifting only five people from poverty. It is about planting a seed and letting it grow a million times. The role of government and society Social business is sometimes mistaken for an ideology that is akin to communism or socialism.
It is far from it — social business offers options to investors and citizens to take on the responsibility that is traditionally the role of the government. Competition and freedom of choice is enhanced when people are given a wide range of options for goods and services. People have more control over their careers as social businesses may be created depending on the kind of organization structure as the owners deem fit.
Investment opportunities are greatly raised from diverse sources. It is a pittance that governments of poor countries are subject to self-serving parties, corruption, and conflicting interests.
Privatization efforts did not have considerable success due to influential individuals who serve only to gain from new holdings. Social business is a way of bringing hope and giving fruit to the idealism of helping humankind in its quest for quality of life.
It is an outlet to creative problem solving and an opportunity for spiritual renewal, framing an otherwise bland existence, or simply improving the planet. A multi-faceted individual is somebody with depth and dimension, not lost in the drone of everyday living. A commitment to a social business offers an attitude change towards optimism, sympathy, and hopefulness.
Change can only be shaped by like- minded individuals and kindred spirits who believe that humans are fundamentally good and that we can all contribute to make a better world. Mounting crises open doors to experiment with bold solutions. Complementary social businesses produce a synergy effect to eradicate the most basic of human ailments. Improved health and education produce able bodied and minded individuals that will in turn contribute to society.
Nutrition and eventual creation of new jobs for village women were the main focus. The yogurt was nutritious and delicious, but sales of the company were not taking off. Distribution channels had to be examined. Yogurt requires refrigeration and some district towns do not have reliable electrical service.
This issue was promptly addressed by storing quantities of the yogurt to towns where there is reliable service. To be successful, the company had to involve the whole community and family. Traditionally, women stay close to home.
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By involving the husbands, the company is able to seek approval and therefore make selling by these ladies more successful. Evidently, the main learning is to know the community, be close to the culture, and manage the business accordingly. A social business must also be managed on a sustainable basis. Prices, procedures, and methods need to be realistic at the start-up stage and then reviewed periodically. The distribution strategy included refrigerated trucks to carry supplies from the factory to the city of Dhaka.
Both the urban and the rural markets were served. Product offerings were diversified to include both adults and children. In summary, here are the lessons learned from the Grameen Danone experience: Be flexible, yet never lose sight of your central goal.
Immerse yourself in the culture of the people you intend to serve. Use help from allies wherever you may find them. Take advantage of differing opportunities in different markets. Question your own assumptions. Cure2Children and Grameen Healthcare Trust The purpose of this partnership is to provide a cure for the devastating genetic disease called thalassemia,5 a blood anomaly carried by a recessive gene.
It is transmitted genetically among certain population groups. In Bangladesh, over , children are affected. The cure is a complete bone marrow transplant that is time-consuming, 5 Thalassemia is a blood disorder passed down through families inherited in which the body makes an abnormal form of hemoglobin. Hemoglobin is the protein in red blood cells that carries oxygen. The disorder results in large numbers of red blood cells being destroyed, which leads to anemia https:The social business plan integrated local ingredients into the products, a local artist to develop the label and relied on shops and women in the area who were borrowers with the Grameen Bank, for distribution.
Post-operative care requires the patient to be hospitalised for forty five days.
Huge multinational corporations can also forgo current income on certain investments, but struggling social enterprises may need to raise capital from investors who insist upon a fi nancial return. Of course there are legal restrictions to his vision.
Society insists that individual and corporate social responsibility become an alternative response to market failures Benabou, JR Consultancy.