A Ray of Hope for Capitalism?
In the turn of the 21st century we saw capitalism take hit after hit, as it was criticized all over the world. In a time like this, a single altruistic act can have a revolutionary impact.
Hailed as one of the most celebrated thinkers in the world of poverty alleviation, the Nobel Peace Prize winner, Muhammad Yunus, started his multi-billion dollar Grameen Bank from an act of compassion. On a visit to a Bangladesh village, Yunus discovered people so poor that they could not pay for the raw materials needed for their tiny businesses, which led him to lend 42 of them $27 out of his own pocket to break their poverty cycle (1). This began microcredit, lending to the poor.
According to Muhammad Yunus, “In a conventional business you go into business to make money … To do that you need some people to work for you. So they are a by-product of your main objective. In a social business, creating employment for these five people is the objective.” (1)
Grameen became an effective model for poverty reduction and female empowerment, copied throughout the world. Now, a new generation of businesses, deemed “social entrepreneurship”, seek to create shared value, meaning that they obtain long-term sustainable profits while simultaneously advancing the economic and socials conditions of the communities they work in (2).
The true power of social entrepreneurship is that it is self-sufficient, unlike a non-profit which relies on donations. It still draws upon aspects of capitalism; however, where traditional capitalism is incomplete, the “social” is what completes it by adding a humanitarian aspect. Social business is effectively a true agent of change, offering a ray of hope for the future.
References:
1) http://www.ft.com/intl/cms/s/2/13420d7c-3be2-11e3-b85f-00144feab7de.html#axzz2isUT8rAC
2) http://www.waterhealth.com/sites/default/files/Harvard_Buiness_Review_Shared_Value.pdf
Pictures:
http://www.dw.de/europeans-blockupy-the-ecb-in-frankfurt/a-16851232
http://www.guernicamag.com/interviews/muhammad_yunus_8_1_11/
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