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.
Table of Contents
I. Introduction
II. The Origins of Social Business
III. Defining Social Business
IV. The Grameen Experience
V. The Limits of Social Business
VI. Conclusion
Research Objectives & Core Topics
The primary objective of this work is to analyze the concept of social business as proposed by Professor Muhammad Yunus, evaluating its efficacy as a poverty-reduction model while critically examining its limitations and necessity for integration with other social support systems like education.
- The foundational origins and motivations behind the creation of social businesses.
- Definitions and theoretical frameworks distinguishing social businesses from charities and traditional profit-driven firms.
- Case study analysis of the Grameen Bank as a model for micro-finance and social entrepreneurship.
- Critical investigation into the structural and systemic limitations of the social business model.
- The role of education and government policy in complementing social entrepreneurship to achieve sustainable development.
Excerpt from the Book
II. The Backgrounds of Social Business
Yunus was Professor of Economics in Bangladesh when his frustration with local banks erupted because they did not want to borrow money to the poor. In fact, the banks did not consider poor people as to be eligible to pay back money if they were given loans because they had no financial resources. It was a woman called Sufiya Begum, from a village named Jobra who explained to Yunus about the difficulties she encountered. As the majorities of the villagers, she counted upon the local moneylender for the money she needed to purchase the bamboo for the chairs she crafted. Unfortunately, he would only provide her with the money on condition that she decided to sell him all of her production, and at a price he would himself agree. That price proved to be dramatically low. Accordingly, despite the fact that she was working hard, she even became poorer than ever, imprisoned in poverty, including forty-two other villagers. Subsequently, all of them faced the same difficult condition although they had borrowed a total sum of money reaching less than $27 from the moneylender. In contrast, conventional banks could not lend them money because they had no credit histories and no guarantee to offer, and were unable to even fill out the necessary official procedure because they were uneducated.
Chapter Summary
I. Introduction: Outlines the definition of social business according to Muhammad Yunus and presents the author's critical perspective on the necessity of combining this model with educational initiatives.
II. The Origins of Social Business: Details the personal and professional experiences of Muhammad Yunus in Bangladesh that led to the foundation of the Grameen Bank.
III. Defining Social Business: Explores the theoretical framework of social businesses, comparing them to traditional profit-maximizing firms and non-profit organizations.
IV. The Grameen Experience: Examines specific case studies of the Grameen Group, illustrating the practical successes and collaborative efforts of the micro-finance model.
V. The Limits of Social Business: Critically analyzes the shortcomings of the social business model, highlighting its inability to address broader systemic issues like national income distribution.
VI. Conclusion: Summarizes the key findings, reiterating that while social businesses are innovative, they require integration with other social interventions to effectively eradicate poverty.
Keywords
Social Business, Grameen Bank, Muhammad Yunus, Micro-finance, Poverty Alleviation, Social Entrepreneurship, Capitalism, Sustainability, Economic Development, Education, Corporate Social Responsibility, Income Redistribution.
Frequently Asked Questions
What is the core focus of this dissertation?
The dissertation focuses on analyzing the concept of "social business" as introduced by Professor Muhammad Yunus, specifically examining its potential and limitations in the context of fighting global poverty.
What are the primary themes discussed in the work?
The key themes include the origins of social business, the definition and principles of the model, the success of the Grameen Bank, and the systemic limits of applying this model to complex national or international issues.
What is the central research question?
The research explores whether social businesses are a sufficient, standalone solution to poverty or if they must be integrated with other strategies, such as state-funded education, to be truly effective.
Which scientific approach does the author use?
The author uses a qualitative, analytical approach based on literature review, examining the work of Muhammad Yunus alongside critical perspectives from other scholars and reports on social enterprise.
What content is covered in the main body?
The main body moves from the historical emergence of the Grameen Bank to a theoretical definition of social business, followed by empirical case studies and a critical debate regarding the limitations of these businesses.
What terms are essential to understanding this work?
Essential terms include social business, self-sustainability, micro-finance, non-dividend companies, and corporate social responsibility.
Does the author consider social business a perfect system?
No, the author explicitly argues that the system has limitations and that its potential is restricted if it is not supported by complementary government policies like public education.
How does the author view the role of women in the Grameen model?
The author notes that the Grameen Bank found women to be more productive and reliable borrowers than men, as they prioritize the health and education of their children, leading to more sustainable community impacts.
- Citation du texte
- Dr. Jean Cédric Obame Emane (Auteur), 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
