A social business is a new type of businesses designed by Professor Muhammad Yunus to serve social purposes. Yunus was a former economics professor at Dhaka University, and the founder and managing director of Grameen Bank (lenders of microcredits to world’s poorest) who won the 2006 Nobel Peace Prize. A social business is an alternative against poverty and its objective is to make the poor participate in the process that helps them get out of that situation of slavery- poverty- by causing them to become micro entrepreneurs who increase their income in order to become independent people. The process will eventually change their living conditions and living standards.
In Yunus’ words there are two kinds of social businesses. The first category is one that is a non-loss, Non-dividend Company whose main purpose is basically a social goal. The second category is a profit making company possessed by poor people devoted to a well-defined social cause. Besides, social businesses must be self-sustaining and its owners have to be dedicated to never take any dividend beyond the return of the original amount they put in the business, Yunus. Above all, his book is very amazing as Yunus proposes a new model to solve the problems of poverty, not with more charities but with the creation of social businesses. Charities on the contrary encourage dependence and have not resolved the issue of poverty until now.
In that perspective, Yunus (2010) sustains that for years governments have been incapable of solving the problems of poverty. Conversely, the number of poor people has increased over the years. This clearly illustrates that solving the issue of poverty is not only to be a governmental solution as governments have proved to be incompetent in this respect. Another solution was to be found, it is the one he proposes in his book. In fact, social businesses have become so successful that traditional capitalism is thinking somewhat how to shift the way things have been handled on their part so far. As an illustration, Yunus (2010) thinks that social business is a new type of capitalism that will help humankind to overcome poverty and have a better life.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- The Backgrounds of Social Business
- Defining Social Business
- The Grameen Experience
- The Limits of Social Business
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay examines the concept of social business, a model created by Professor Muhammad Yunus to address global poverty. It explores the origins of social business, its definition, and the success of the Grameen Bank as an example. The essay also analyzes the limitations of social business as a solution to poverty.
- The origins and development of social business.
- The definition and principles of social business.
- The Grameen Bank experience and its impact on poverty reduction.
- The limitations of social business as a comprehensive solution to poverty.
- Alternative approaches to poverty alleviation, particularly the importance of education.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the concept of social business as an innovative approach to poverty alleviation. It highlights the work of Professor Muhammad Yunus and the Grameen Bank, emphasizing the need for alternative models to address global poverty.
- The Backgrounds of Social Business: This chapter explores the origins of social business by recounting Professor Yunus's initial encounter with poverty in Bangladesh. It describes how he was motivated to create the Grameen Bank after witnessing the struggles of villagers who lacked access to traditional banking services.
- Defining Social Business: This chapter provides a detailed definition of social business, outlining its core principles and objectives. It differentiates between two types of social businesses: non-profit and profit-making enterprises, both with a social mission.
- The Grameen Experience: This chapter explores the Grameen Bank, a successful example of a social business model. It discusses the bank's unique approach to lending, focusing on micro-credit programs and empowering the poor through entrepreneurship.
- The Limits of Social Business: This chapter critically examines the limitations of social business as a comprehensive solution to poverty. It argues that while social business can contribute to poverty reduction, it needs to be complemented by other initiatives, particularly investments in education.
Schlüsselwörter (Keywords)
The essay focuses on the concept of social business, its origins, definition, and implementation. Key themes include poverty alleviation, micro-credit programs, entrepreneurship, the Grameen Bank, and alternative solutions to poverty. The essay also highlights the importance of education in addressing poverty and promoting sustainable development.
- Quote paper
- Dr. Jean Cédric Obame Emane (Author), 2016, Building Social Business by Professor Muhammad YUNUS. Analyzing the Advantages and the Limits of Microcredits, Munich, GRIN Verlag, https://www.grin.com/document/437226
