The combination of the traditional way of the capitalistic thinking company, which aspires to maximise its profits (homo economicus), and the selfless approach of non-profit organisations, which contribute to society and are dependent on generous and periodic donations, create a new and sustainable business concept. This concept has emerged – mainly during the last decade – within the broader context of Social Entrepreneurship and is defined as Social Business.
Inspired by the energy of Muhammad Yunus and the time the author spent in Bangladesh, one of the poorest countries on a global scale, this research will provide a scientific approach to the sphere of Social Entrepreneurship and Social Business as a specific and innovative business model. Furthermore, this academic work examines the sustainability of the concept, evaluating it deductively by means of deriving the necessary information from several case studies and expert interviews carried out among others with Muhammad Yunus, Nobel Peace Laureate and founder of the Grameen Bank in Bangladesh, as well as Frédéric Dalsace, head of the Social Business Chair at HEC University, Paris. Finally, the thesis conveys an outlook on the upcoming development of Social Entrepreneurship and especially Social Business as well as proposes steps to be taken in order to guarantee the sustainability of Social Businesses within a macroeconomic and microeconomic perspective, based on the academic research and expert interviews.
Table of Contents
1. Introduction
2. Social Entrepreneurship (SE) – Concept and Facets
2.1. Definitions of relevant terms
2.1.1. Definition of “Entrepreneurship”
2.1.2. Definition of “Social“
2.1.3. Definition and Scope of Social Entrepreneurship
2.2. Social Entrepreneurship – a Concept of Systematic Change
2.3. Social Business (SB) vs. Social Enterprises
2.3.1. Most Common Concepts of Social Enterprises
2.3.2. Double and Triple Bottom Line
2.3.3. Two Forms of Social Business
2.3.4. The Seven Principles of Social Businesses
2.3.5. The Midas Touch and the Ancient Greeks
2.4. Key Characteristics of Successful Social Entrepreneurs
2.4.1. Social Commitment as Leitmotif
2.4.2. Social Entrepreneurs as the Best Fundament for SB
2.5. Social Business vs. Corporate Social Responsibility
2.6. Social Business vs Charity and Philanthropic Institutions
2.7. The Base of the Pyramid as a Parallel Development
2.7.1. Definition and Brief Overview of the BoP
2.7.2. Breaching the Gap between BoP and Social Business
2.8. Interim Conclusion
3. Applied Social Business in Reality and its Evaluation
3.1. Applications of Social Businesses as Role Models
3.1.1. Grameen Bank - the Eradication of Poverty
3.1.2. Grameen Danone Food - the Fight against Malnutrition
3.1.3. Grameen Shakti - Commitment to Renewable Energies
3.1.4. Grameen Veolia - the Provision of Arsenic Free Water
3.1.5. Grameen BASF - a German-Bangladeshi Cooperation
3.1.6. Grameen Otto Group and Other Social Businesses
3.2. Critics on Social Business
4. Sustainable Development as Social Business’ Overall Objective
4.1. Definition of Sustainable Development
4.2. Sustainable Development within the SE Sphere
4.2.1. Sustainable Performance and Methods of Measurement
4.2.2. The Third Sector and its Activity
4.2.3. Ethically Conscious Consumers Pursue Sustainability
4.2.4. LOHAS as a Sustainable Consumer Category
4.2.5. Stern Review on Climate Change as a Present Excursus
4.3. Interim Conclusion
5. Outlook
5.1. Public awareness of the Social Business concept
5.2. Expansion of the Third Sector to enhance its efficiency
5.3. Establishment of a sustainable infrastructure for SB
5.4. Social Entrepreneurship at Business Schools
5.4.1. Social Competence among the Top Management
5.4.2. Social Entrepreneurship at Business Schools
5.5. Conclusion Mark
6. Bibliography
7. Appendix: Impressions on Social Businesses
8. Acknowledgements
Objectives and Research Themes
The primary objective of this research is to provide a scientific exploration of Social Entrepreneurship, with a specific focus on the "Social Business" model pioneered by the Grameen Bank. The paper aims to evaluate the sustainability of this model through a combination of academic literature review and expert interviews, ultimately proposing strategies for its future development within both microeconomic and macroeconomic frameworks.
- Theoretical conceptualization of Social Entrepreneurship and Social Business.
- Comparative analysis between Social Business, CSR, and traditional philanthropy.
- Evaluation of Social Business implementations via real-world case studies (Grameen Bank family).
- Analysis of sustainability measurement methods and the role of the "Third Sector."
Excerpt from the Book
2.3.1. Most Common Concepts of Social Enterprises
The Social Enterprise is generally driven by two string forces: On one hand there is the nature of desired social changes, which emerge from an innovative, entrepreneurial or enterprise-based solution; on the other hand, there is the sustainability of the organisation and its services, which depend on a diversified funding stream. This funding stream is mainly connected to an income generating activity. As Figure 1 demonstrates, Social Entrepreneurs are motivated by both social value creation and profit generation in order to pursue social change. That is why people with a wide range of combinations of profit and social motives can become Social Entrepreneurs since in all possible combinations he can create significant value. Social Enterprises are designed and established in order to achieve their social and economic value creation objectives. After having created the vision and overall objective of how the social enterprise will create value and contribute to society, the business is modelled.
Summary of Chapters
1. Introduction: This chapter introduces the global challenges necessitating new economic models and presents the author's motivation for researching Social Business after an internship at Grameen Bank.
2. Social Entrepreneurship (SE) – Concept and Facets: This section defines the foundational terms of entrepreneurship, social contribution, and the scope of Social Entrepreneurship, distinguishing Social Business from other models like CSR and traditional charity.
3. Applied Social Business in Reality and its Evaluation: This chapter examines practical applications of the Social Business model through various Grameen Bank ventures and provides a critical evaluation of these models regarding their market fit and social impact.
4. Sustainable Development as Social Business’ Overall Objective: This chapter bridges the gap between Social Business and sustainability, exploring performance measurement methods and the role of the "Third Sector" in future economic landscapes.
5. Outlook: The final chapter provides a forward-looking analysis of the challenges and necessary developments for Social Business, including the role of business schools in educating future leaders in social entrepreneurship.
Keywords
Social Business, Social Entrepreneurship, Grameen Bank, Sustainability, Muhammad Yunus, Social Enterprise, Microfinance, Triple Bottom Line, Corporate Social Responsibility, Base of the Pyramid, Social Impact, Third Sector, Social Return on Investment, Poverty Alleviation, Economic Innovation.
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on the "Social Business" concept, a sustainable business model aimed at solving societal problems by combining the profit-generating nature of capitalistic companies with the social mission of non-profit organizations.
What are the key thematic areas covered?
Key areas include the definition and evolution of Social Entrepreneurship, the operational models of Social Business, the distinction between Social Business and CSR, and the evaluation of social impact and sustainability metrics.
What is the core research question?
The work aims to scientifically define and evaluate the Social Business concept and investigate its long-term sustainability through both theoretical analysis and real-world case studies.
Which scientific methods are employed?
The author uses a deductive approach, synthesizing existing academic literature with findings from expert interviews, including insights from Muhammad Yunus and other professionals in the field.
What does the main body address?
The main body moves from theoretical frameworks to practical applications, analyzing specific ventures like Grameen Danone and Grameen Shakti, and explores challenges related to performance measurement and consumer adoption.
What are the characterizing keywords?
The paper is characterized by terms such as Social Business, Social Entrepreneurship, Microfinance, Triple Bottom Line, and Poverty Alleviation.
How does Grameen Bank’s model differ from standard business?
Unlike traditional companies aimed at shareholder profit maximization, Grameen Bank’s Social Business model is a "non-loss, non-dividend" enterprise where profits are reinvested into the company to further the social mission.
Why is performance measurement difficult for Social Businesses?
Measurement is difficult because the impacts are often long-term, qualitative, and dynamic, making it challenging to quantify "social change" in standard monetary or KPI-based frameworks.
- Quote paper
- Markus Beck (Author), 2010, Social Business as a Sustainable Business Concept, Munich, GRIN Verlag, https://www.grin.com/document/153897
