Social Business Model

Muhammad Yunus popularized the Social Business model through the Grameen Bank in Bangladesh. Since then, lots of nonprofit organizations and foundations jumped in to the bandwagon and established their own versions of the social business model.

What is it exactly? How can social entrepreneurs use this model to help them address the issues of their societies?

Lots of development workers appear to be allergic to the term "profit." This is because it's been associated with greedy corporations whose sole purpose is to maximize the bottom line without regard for the people working for them and for the environment in which the business operates. But if the idea of "profit" could be redeemed, it can be treated as a way to maintain the business so as to maximize the social impact it can give to the society.

They ought to have a lovely knowledge of the social business model. The benefits derived from the social business ought to be passed on to the consumers. Simultaneously, the business ought to not be operating at a loss, this means that it needs to have a lovely level of profit without making it difficult for consumers to avail of their services. A social business also needs to compete with businesses that are supposed to maximize profits.

The means of production may include non-monetary resources. In various communities, the means of production are contributed by men, females and young people. This is a classic example of a community working together to empower each other.

Innovation is at the core of the social business model. Everyone is worthy to get the services it provides. It is also revolutionary. It rejects the traditional methodology and model of business. In terms of objectives, it helps provide services to its customers with minimal costs but not at the expense of the company.

Through this model, lots of communities from all over the world are becoming empowered. It is better for a community to help itself from within in lieu of waiting for an outside force to help it, exactly because the impact would be long-term. If the community relied on an outside force for dole out assistance, when such assistance stops, then the progress stands still and finally declines.

This model also helps provide self-employment among the people in a community. In fact, it helps and trains them to put up their own businesses so that they do not become dependent on aid and other outside help. When they recognize that they have the power to raise themselves from poverty, they can become powerful and they will help themselves get out of poverty.