<p><span style="font-size: small;"><span style="font-family: arial;"><span style="font-family: "><span style="mso-spacerun: yes;"></span></span></span></span></p> <p><span style="font-size: small;"><span style="font-family: arial;"><span style="font-family: "><span style="mso-spacerun: yes;"></span></span></span></span></p> <p><span style="font-size: small;"><span style="font-family: arial;"><span style="font-family: "><span style="mso-spacerun: yes;"></span></span></span></span></p> <p><span style="font-size: small;"><span style="font-family: "><span style="font-family: arial;"><span style="mso-spacerun: yes;"> <p><span style="font-family: arial;"><span style="font-family: ">Muhammad Yunus, together with his Grameen Microcredit Bank, won the Nobel Peace Prize in 2006 for his pioneering work in the field of microcredits. I picked up his latest book, &lsquo;</span><span style="font-family: "><a href="http://www.amazon.com/Building-Social-Business-Capitalism-Humanitys/dp/1586488244/ref=sr_1_3?ie=UTF8&amp;s=books&amp;qid=1291094216&amp;sr=1-3"><span style="color: windowtext; text-decoration: none; text-underline: none;">Building Social Business: The New Kind of Capitalism That Serves Humanity's Most Pressing Needs</span></a>&rsquo;, in order to learn more about the work of this world-famous &lsquo;banker for the poor&rsquo;, particularly in his home country, Bangladesh.<span style="mso-spacerun: yes;">&nbsp; </span>I was a little apprehensive as I know very little about business and economics.<span style="mso-spacerun: yes;">&nbsp; </span>I need not have feared.</span></span></p> <p><span style="font-family: "><span style="font-family: arial;">&nbsp;</span></span></p> <p><span style="font-family: "><span style="font-family: arial;">Co-written with Karl Weber, the book offers a clear, stimulating description of his theory of how social business can go a long way in eradicating poverty. It is filled with examples of how&nbsp;Yunus' idea is making a difference to people&rsquo;s lives and their dignity, but at the same time he does not shirk from illustrating the problems that can arise whilst creating a social business. </span></span></p> <p><span style="font-family: "><span style="font-family: arial;">&nbsp;</span></span></p> <p><span style="font-family: arial;"><span style="font-family: ">From defining social business as &lsquo;</span><span style="font-family: ">a non-loss, non-dividend company designed to address a social objective&rsquo; in which &lsquo;the profits are used to expand the company&rsquo;s reach and improve the product/service&rsquo; Yunus moves on to outline the two main &lsquo;branches&rsquo; of social business.<span style="mso-spacerun: yes;">&nbsp; </span></span></span></p> <p><span style="font-family: "><span style="font-family: arial;">&nbsp;</span></span></p> <p><span style="font-family: "><span style="font-family: arial;">The first provides goods or services, and is owned by people who are not poor, and there are no profits for the owners.<span style="mso-spacerun: yes;">&nbsp; </span>He offers examples of how large companies have become involved in social business.<span style="mso-spacerun: yes;">&nbsp; </span></span></span></p> <p><span style="font-family: "><span style="font-family: arial;">&nbsp;</span></span></p> <p><span style="font-family: arial;"><span style="font-family: ">In 2006, Grameen Danone was born.</span><span style="mso-ansi-language: EN;"><span> The idea was to reduce poverty by providing an affordable, fortified yoghurt-type drink in rural Bangladesh, while creating business and employment opportunities for local people. The raw materials needed for production are sourced locally. Profits are reinvested <span style="mso-spacerun: yes;">&nbsp;</span>to create new opportunities for the welfare and development of people. </span></span></span></p> <p><span style="font-family: "><span style="font-family: arial;">&nbsp;</span></span></p> <p><span style="font-family: arial;"><span style="font-family: ">Last year Adidas committed to providing shoes at cost price - </span><span style="font-family: ">&euro;1 per pair, to poor Bangladeshis.<span style="mso-spacerun: yes;">&nbsp; </span>As well as providing employment for local people, the shoes would help prevent diseases.</span></span></p> <p><span style="font-family: "><span style="font-family: arial;">&nbsp;</span></span></p> <p><span style="font-family: "><span style="font-family: arial;">The second type of social business is owned by the poor and generates income directly.<span style="mso-spacerun: yes;">&nbsp; </span>For example, the Grameen Bank provides loans to low-income people, particularly women, who would be refused loans by banks, offering them the opportunity to start small businesses and improve their living standards.<span style="mso-spacerun: yes;">&nbsp; </span>When the bank opened, even beggars came to take out small loans, in an effort to turn around their lives by starting small business activities.<span style="mso-spacerun: yes;">&nbsp; </span>The repayment rates were extremely high.</span></span></p> <p><span style="font-family: "><span style="font-family: arial;">&nbsp;</span></span></p> <p><span style="font-family: "><span style="font-family: arial;">The book, written in an optimistic, up-beat style, offers many more inspirational examples from the fields of health, communication, and education, of how Yunus&rsquo; work is providing a better life for millions of people in a very simple way.</span></span></p> <p><span style="font-family: "><span style="font-family: arial;">&nbsp;</span></span></p> <p><span style="font-family: "><span style="font-family: arial;">Yunus&rsquo; message is believable: poverty is not created by people but by circumstances: people are born with the potential to look after themselves and to contribute to society.<span style="mso-spacerun: yes;">&nbsp; </span>Yunus&rsquo; vision that a poverty-free world can be created within a few years may sound idealistic, but his theories stand up.<span style="mso-spacerun: yes;">&nbsp; </span>Maybe one day in the not so distant future poverty will exist only in museums, as Yunus hopes.</span></span></p> <p><span style="font-family: "><span style="font-family: arial;">&nbsp;</span></span></p> <p><span style="font-family: "><span style="font-family: arial;">If you would like to know more about Yunus&rsquo; work, this book gives an excellent overview.<span style="mso-spacerun: yes;">&nbsp; </span>See also </span><a href="http://www.grameencreativelab.com/live-examples/grameen-bank-the-mother-of-grameen-social-business.html"><span style="font-family: arial;">http://www.grameencreativelab.com/live-examples/grameen-bank-the-mother-of-grameen-social-business.html</span></a><span style="font-family: arial;"> and </span><a href="http://en.wikipedia.org/wiki/Muhammad_Yunus"><span style="font-family: arial;">http://en.wikipedia.org/wiki/Muhammad_Yunus</span></a></span></p> <p>&nbsp;</p> </span></span> <p>&nbsp;</p> </span></span> <p>&nbsp;</p> </p> <p>&nbsp;</p>