Two theories have long been established on the world's economic map. Capitalism and socialism. For various reasons, socialism is no longer at the center of discussion. Capitalism prevails all over the world. That capitalism is facing various crises and questions today.
The capitalist countries of the world are no longer satisfied with traditional capitalism. Many think that capitalism needs to be reformed. In the context of such a global economic situation, Nobel laureate Dr. Muhammad Yunus, founder of Grameen Bank, the inventor of microfinance, has presented his recent social business theory to the world. In this business, investors will invest to solve a social problem, but will not take profit from that business.
At the same time, various problems prevailing in the country will be solved. And that will not be in the form of donations or charity, but in a completely business manner. Social business is an example of how humanity can be served through business. Now the question is, will anyone be interested in starting a social business with this selfless goal of achieving personal profit or without looking at the interests of profit?
Where will the money for investment in social business come from? Who will take the lead in investing capital? The investment money should come from people of all walks of life, since they will gain overall mental satisfaction/satisfaction by starting a selfless social business.
Investors in social business will not only invest money, but they can change the world by investing their creativity, communication skills, technical talent, life experience and many other things. Seven basic principles should be taken into consideration in the case of social business, then it can be called a social business.
For example: (a) It is a personal non-profit welfare business established with the aim of solving one or more issues, including poverty alleviation, such as education, health, technology and environmental problems. (b) The goal of this business is to achieve the capabilities of everyone. (c) Investors in social business will only get back their invested money, they will not be able to take any dividends beyond that. (d) After the investor withdraws his invested money, the profit of the invested money will be used for the expansion of the company. (6) This business will be environmentally friendly. (f) Those who will work here will get a good working environment and salary and allowances according to the current market. (g) Social business will be a happy business.
The key to evaluating conventional businesses is to achieve the maximum profit. The company that makes more profit is also more attractive to everyone. Their business is called the 'highest profit-making company'. There is a competition among them to increase profits. On the other hand, social business companies will compete among themselves, the success of the competition will depend on how efficiently a businessman can solve the problems of society. If two or more social business companies operate in the same market, then the customer will decide which company they will choose.
When two social business companies compete to get investors, their competition is not based on making the highest future profit. The competition is based on who can ensure the amount of social benefits.
The first type of social business is one that focuses on social benefits, such as healthcare, social justice, sustainable technology, and environmental development, rather than maximizing profits for the owner. Investors in this business will prioritize spiritual satisfaction over financial rewards. This type of business will strengthen social development.
Now note the differences between the two social businesses. In the first type of social business, the nature of the product, service, or business management system creates social welfare. Such businesses can clean the environment, reduce social inequality, and reduce or alleviate drug addiction, domestic violence, unemployment, or crime.
The products or services produced under the second type of social business do not have any characteristics that are different from any other product or service. Such companies create social benefits only by making poor people owners of businesses and assets. For example, Grameen Bank provides small loans to the poor at low interest rates, so that they can do small businesses and ultimately free themselves from the vicious cycle of poverty.
If the rich owned this bank, then Grameen Bank would have become a highly profitable institution. But that is not the case. The borrowers own 75 percent of Grameen Bank. The owners get a share of the dividends. Out of 13 directors on the bank's board of directors, 1 is a poor member of Grameen Bank. They are the policy makers of the bank. Because of their ownership, transparency is observed in all aspects of banking activities. Currently, the loan recovery rate of this bank is 97 percent. It is operating in 97 countries around the world on the model of Grameen Bank.
Journalists, researchers, state representatives, and students from different parts of the world come to Grameen Bank to see how Grameen Bank's activities are going on. This is a matter of great pride for this country. Impressed by the nature of social business, Social Business Yunus Center has been launched in 80 universities and colleges around the world.
In Berlin in 2015, more than a thousand representatives from different classes and professions from about 70 countries of the world participated. The main theme of this conference was to find out how social business can play a role in meeting the targets of the Sustainable Development Goals or SDGs announced by the United Nations. Currently, Dr. Muhammad Yunus is working worldwide with this new theory of social business to alleviate poverty. This concept of social business has been positively accepted by every country in the world.
Social Business Conferences are still being held internationally in different countries. Representatives from different countries participate in it. Social business is gaining popularity day by day. In many countries, social inequality and unemployment have been eliminated by establishing social business. If social business can be implemented in Bangladesh, consumer rights will be implemented, the rise in commodity prices can be prevented, and inflation will be under control.
Author: Banker and Columnist
