Unlike traditional business, a social business operates for the benefit of addressing social needs that enable societies to function more efficiently. Social business provides a necessary framework for tackling social issues by combining business know-how with the desire to improve quality of life. Prof. Yunus has already shown the effectiveness of this new type of business: his clear focus on eradicating extreme poverty combined with his condition of economic sustainability has created numerous models with incredible growth potential. The framework of a social business is based on 7 principles. With the idea of social business, Prof. Yunus has introduced a new dimension for capitalism: a business model that does not strive to maximize profits but rather to serve humanity’s most pressing needs.
Background of the social business model
Within our economic system there are currently two main types of organization models. The private sector where companies sell products or services to make money, and non-profit organizations financed by the government like healthcare and education. Where both governments and the markets reach their limits, charities may fill the gap. Nowadays, we have forgotten to involve the poor into economics. And exactly that target group is full of potential but has never had a real opportunity.