Nowadays, it is businesses that have great power and great responsibilities for the world we have today and for the world we have tomorrow.
It is universal acknowledged that one could not make money if he or she has no money. To solve this problem, Grameen Bank and microfinace emerge as the times require. The Grameen Bank is a microfinance organization and community development bank founded in Bangladesh by Muhammad Yunus in 1976. The purpose of this bank is to make small loans to the impoverished without requiring collateral. At the same time, giving them a community of peer support among other borrowers and allowing them to review each other’s loans.The results surprised everyone. With the help of microfinance, more than half of Garmeen’s members have move their families out of poverty.
In my opinion, poor people could never be the bank’s shareholders. They always refuse to lend money to them because they are afraid of not paying it back. However, if the poor could not get the first dollar, how can they make the next dollar. It would be a vicious cycle in the end. Grameen Bank offers everybody a chance, especially the poor, to be an entrepreneur. As a result, they run small business to survive and support our economy. The pressing social problem would still be left unsolved without these kind of social businesses. They are the one that finding new ways of helping to solve society’s problems. In addition, social businesses are much more better than charities. It could be financially self-sustaining as long as it get the first investment repaid.
Work Cited: https://dl.dropboxusercontent.com/u/7252825/Ashoka_studentkit_12-15-12_final.pdf