What is a Social Business: Concept, Origin and Features

What is a social business? It is about using creativity to solve human problems in a sustainable way.

Professor Muhammad Yunus

‘Social Business’ as a term was first used by  Prof. Muhammad Yunus. He was awarded the Nobel Peace Prize in 2006 along with his brainchild ‘Grameen Bank’.

A microfinance institution, the Grameen bank was built for the rural poor of Bangladesh. Today, there are numerous successful social businesses in the world inspired from the yunus social business model.

What is a Social Business

The concept of social business comes from acknowledging the fact that human beings have both selfish and selfless sides to their personality. So while we have the mindset that businesses are only seeking for profits, and charity is only possible by social/selfless individuals, there is always a middle ground. You can use the selfless side of your personality to be expressed through business.

A social business is thus about using creativity to solve human problems in a sustainable way.

Numerous non-profit organizations with a social motive exist in the world, but all of them face the similar issue of sustainability. Being dependent upon funds or charity is no long-term answer to the needs of the society. Which is why, social businesses are designed to generate revenues, become self-sustaining and solve the prevalent human problems.

How Does it Work

A social business is a wonderful expression of what humans are capable of:

• defining an objective is very important

• designing the business appropriately according to the objective requires enormous creative power

So anyone with an objective of solving a social problem can start a business, earn profits and reinvest them into the business for social good. While this works exactly how a business operates, the only difference is that the gains here are not just personal, but social as well.

Today several social business examples exist, some of them being run under the Yunus Social Business. Muhammad Yunus Funds, under the YSB exists as a social business accelerator. The institution provides seed money for people with smart social business ideas. They also invest, provide coaching and guidance and help these businesses become financially independent. Once they succeed, these businesses return the investment amount (without any interest). So the money is freed up to launch another social business, then another, and so on...

Why is it Necessary

Social business will give a chance to the old, young and deprived people to use their creativity and solve the problems of society. Ancient maladies like poverty, hunger, disease, environmental degradation, all of this can be tackled. Opportunities can also be created for millions of unemployed young people to put their wasted talents to appropriate use by treating them as entrepreneurs.

The purpose of human life on this planet is not merely to survive but to live on it with grace, beauty and happiness. We can create a new civilization based not on greed but on the full range of human values. Social business will play a central role in creating a new road towards the new civilization we all need. (Adapted from 'A World of Three Zeroes' by Prof. Muhammad Yunus)

Help us in our journey to become a sustainable social business. We need a team of dedicated individuals who are willing to contribute their time, money, expertise or effort. If you would like to contribute, connect with us.