Social business a way to reduce poverty....

For those that dont know what it is the first question may be what is a social business.Well the definition is easy  according to Professor Muhammad Yunus  the major pioneer of the social business model the describes it as The new kind of capitalism that serves humanity's most pressing needs.The social business model  is  designed to generate a modest amount of profit for companies while addressing  social objectives and problems. It is different from non-profit  because it seeks to meet societal needs at thesame bringing revenue for the company.A social business model is a rather prodent way to go for small or big business looking for new products to sell because when you are selling a product that is needed by the majority of people in your region it means you are going have more profit.
 The social business model targets social issues like poverty,education,clean water supply,housing needs,diseases and other issues affecting the society at large.

In Yunus’ book Creating a World without Poverty - Social Business and the Future of Capitalism, two different types of social businesses are proposed:

• A Type I social business focuses on providing a product and/or service with a specific social, ethical or environmental goal. A prominent example is Grameen Danone.
• A Type II social business is a profit-oriented business that is owned by the poor or other underprivileged parts of the society, who can gain through receiving direct dividends or by indirect benefits.Green Bank, being owned by the poor, is the prime example of this type, although it would also classify as a Type I social business.

Grameen Bank, which is Yunus' prototype social business, was launched in 2005. It's social mission is to address malnutrition in Bangladesh, by providing products, such as yoghurt, containing many of the nutrients missing in an impoverished child's diet and providing these products at a price affordable to everyone. Grameen Danone received seed capital and in-kind support from dairy products company, Danone and the brand credibility leant by Yunus' well-known micro-finance company, Grameen Bank.

Seven Principles of Social Business

These were developed by Prof.Muhamaad  Yunus and Hans Reitz, the co-founder of Grameen Creative Lab:

• Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which threaten people and society; not profit maximization
• Financial and economic sustainability
• Investors get back their investment amount only. No dividend is given beyond investment money
• When investment amount is paid back, company profit stays with the company for expansion and improvement
• Environmentally conscious
• Workforce gets market wage with better working conditions
• …do it with joy

This is just an introduction to the blog socialbusiness forlife.blogger.com for more information on social business and social business networking check out this blogg constantly...socialbusiness is truly a way to revolutionize business and you should be a part of it.you  can do that by joining our network in order to learn more so you can be a leader or participant in this business model that can change lives.