From Microcredit to Social Business: Towards Making Poverty History
Innovative ideas are not standstill, when ideas works they create attraction and developed gradually that microcredit did. In the process of advancement, idea continue to change, newer ideas emerge, sometimes it may outdo the original ideas and very different from the expectations (Mulgan, 2006, p. 154). In the course of time, Grameen Bank own by the ‘poorest of the poor’ who are mostly women becomes a giant that now has 31 different independent companies and organizations. Grameen microcredit idea work successfully and it leads towards a different idea, which is more ground-breaking than the original microcredit program. The idea is called ‘Social Business’. Grameen microcredit program was started for the motivation of social wellbeing. Yunus, the initiator of microcredit later developed the idea. The term social business refers a new kind of business that is intended to provide benefits to poor people or to serve society in different ways (Yunus, 2007). Yunus (2011, p. 125) defined it as a “non-loss, non-dividend company with a social objective”. Social business opens a new horizon of economic sustainability and frontier or crating a world without poverty. International development cooperation could get a new shape by developing social business throughout the world.
Social Business Re-Defining Capitalist System and out of Dependency Path of Development
Social business is a new horizon within the conventional capitalist global economic system of profit-maximization. In the capitalist system the prime objective of any business is profit maximization for individual gain, which Yunus denominated as half-told story of capitalism, and finds solution to the global poverty within the system. World capitalism has more things to do (Yunus, 2011). “Social Business” is quite different from the commonly used terms like ‘social enterprise’ ‘socially responsible business’ etc. that are use by the traditional profit maximizing business corporations (Yunus, (2011a). In the process of social business the investors invest their money to the business, but they would not receive any profit from the business, however, the can get their invested money back if they wish or reinvest it to another social business. The profit of the business generates more business and will create a self-sustaining business, which prime objective is to achieve maximum social good not individual profit (Yunus, Moingeon, & Lehmann-Ortega, 2010). In the conventional development cooperation, the development agencies, charitable foundations generally work on the poverty, health, education, technology access, environmental access. However, after the completion of the project or development assistance money never come-back to the donor and they do not have any opportunity to reuse the money for social good. Therefore, the impact of such kind of development assistance is limited. By contrast, social businesses utilize the...