Social Business

Creating a World without Poverty defines from page 21 onwards what a social business is and what it is not:

  1. it needs to have social objectives: e.g. health, education, poverty or environment
  2. it needs to be owned by the poor or disadvantaged, e.g. women, young people or long-term unemployed men
  3. investors may not, after having had their investments paid back, take profits out of the enterprise.

Wikipedia’s definition is here. According to Dr. Yunus, social businesses are run as ‘non-loss’ and ‘non-dividend’ operations. For young entrepreneurs, this implies mentoring.

And for the investor, this means stopping ‘capital as usual’ and starting ‘credit as if people and planet mattered’. More ‘messages’ approved by Dr. Yunus are here.

At St James’s I invited Aubrey Meyer to give his moving audio-visual presentation for I wanted to make the link between ‘time is running out’ for actions regarding climate change. ’Social business’ is the most effective route for shaping the future of capitalism that is available to creative entrepreneurs.

Dr. Yunus responded to the climate challenge by talking about Bangladesh as being a victim of climate change ever since the floods started getting worse and worse… ‘Capitalism as usual’ is thus the perpetrator.

There is a group on Facebook “Social Business Entrepreneurs is the thing!” in the Facebook trail of “Muhammad Yunus“. It is based on this article by Dr. Yunus.

The ‘social business’ that I’d like to start a la Yunus is the Sustainable Investment Network – which, eventually, is meant to fund social businesses. In computing terms, this may be called ‘bootstrap funding’…

Responses

  1. It’s a laudable sentiment. Where is the money going to come from.? Unless every country secures it’s money supply interest free, all efforts are nebulous.
    When I discussed with the leader of a country on the hold the bankers have on his ’sovereign’ country and what measures he has in store under such a threat.
    True enough such a threat did occur in the eighties, he was able to take them on by addressing his money supply position.
    First country in the world, for the first time to challenge the institutions Confounding all the economic pundits around the world, who predicted doom and gloom.
    He turned the economy around.
    The only solution for the alleviation of poverty and prevention of the holocaust that had been going on in the Third World for decades,.is for each country to secure its money supply. with out depending on foreign banks and institutions.
    It can be done and leaders around the world are realising this.
    Band aid Jubilee efforts are a piece meal efforts.
    The assets of the Third World exceeds the market capitilisation of all the major stock markets of the world, which is crumbling at an astonishing level to zero value.
    For the Third World to progress those countries need leadership and be prepared to stand up to the tactics of the ‘Economic Hitman’ and the jackals
    I am getting encouraging massages loud and clear

  2. David

    Thanks for your comment.

    I guess I limit myself to what I can do, since I don’t hang out with leaders of countries…

    Keep doing your good work!

    Sabine

  3. […] A discussion of the Welfare State where John Bird MBE, the founder of the Big Issue, impressed me tremendously. He embodies what Muhammad Yunus advocates: social business. […]

  4. […] do hope that it will become one of the first true ‘social businesses‘ according to the Yunus definitions! 1 Comment so far Leave a […]

  5. […] the opposite of what Dr. Yunus has created with his Grameen Bank which is usury-free and run as a social business. Possibly related posts: (automatically generated)Green Credit for Green Purposes No Comments so […]

  6. […] Social Business […]

  7. […] Welcome to my latest blog that promotes LETS as community building activities, and BarterCard as a social business in the way that Nobel Peace prize winner Muhammad Yunus has defined it: operating without loss, […]

  8. […] means usury-free banking, ethical accounting and social business in the definition of Nobel Peace prize winner Muhammad Yunus: non-loss, non-dividend (I need to […]

  9. Unfortunately, these days one does not have to do much to receive a Nobel Prize. Good intentions are enough. By this criteria, probably 90% of earth population deserves Nobel Prizes.
    What good doctor Yunus has neglected to see is that any human action results with yield (change in condition from the original state) – this yield can be positive (profit) or negative (loss). He is postulating a world where there is no uncertainty, and therefore no negative yield. Such a world cannot even exist as a mental construct, let alone depict reality. Human kind would never evolve in a universe where future was not uncertain, where there is no possibility of loss. If we disregard uncertainty (possibility of loss), it is easy to construct fanciful “zero yield” theories. However, even when we take this assumption into consideration, we still did not discard the true source of interest, and that is valuation of time. Humans prefer to have things now, rather than later (an apple from orchard is worth to me more today than an apple from the same orchard in a hundred years). Human cooperation translates this basic fact into interest. Zero interest is an abominable illusion, contrary to basic laws of the universe and the fact that humans have to act, i.e. use means in order to reach goals. Time is one of those means, it is scarce and therefore valued as any other good.
    Dr Yunus is not the first one to make such a huge blunder. He just found yet another way to mask this inconvenient fact into convoluted, humanely sounding logic. In that regard he is perhaps smarter than the others. The hard, cold fact remains that his system is unpractical and unworkable in the universe in which humans are forced to act. The only result it can bring about is complete desolution of societal bonds and destruction. I pity the poor people of Bangladesh – at a time they need a Gladstone they get Yunus. Hundred more years of desolate darkness.

  10. Who pays you to think or write like this?


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