Muhammad Yunus won the Nobel Peace Prize for his astounding work in microfinance, as told in his book, Banker to the Poor. His second book, Creating a World Without Poverty, was also a good read. His third book is entitled Building Social Business, and I believe the idea is very creative and is a perfect fit for so many who want to help in making positive changes in our world. A social business is one “that sustains itself but whose purpose is to create social benefits rather than to generate a profit” (pg. 34).
The book describes social business and how it is different from a profit generating business, or a non-profit that pretty much focuses on charitable endeavors. A social business is run to make money, but all of the money generated is used to cover costs and build the business. The products are those which benefit society. The investors are those who want their money to make a difference in the world. In time, the investors receive the exact amount that they invested (regardless of inflation), though there is no 100% guarantee. An example of a social business would be a tree-planting business. Trees would have to be sold as the business needs to be sustainable. Profits would pay for the laborers, for new product, and to pay the investor back over time. The investor feels good about her/his investment because of the trees that help to protect the environment, provide shade, provide employment, etc. Yet another example would be establishing a business that makes mosquito nets to aid in preventing malaria, or a water purification plant to produce clean water. Note, the nets or water is not provided to the customer freely; it needs to be purchased so that sustainability is achieved.
The book is available on amazon.com and can be purchased new, used, or in electronic format. I borrowed the book, but may purchase one because the idea is definitely worth chewing over.
