www.socialenterpriseawards.org.uk/news of a major UK social enterprise competition http://futurecapitalism.ning.com/profiles/blogs/new-national-social-enterprise reminds me one of the number 1 tasks that any friends of dr yunus and bangladesh can do is hunt out networks who are in some way or another cataloguing social enterprises and asking their coordinators whether they are willing to make sustainable models - as governed by the bangladeshi method identifiable from non-sustainable social enterprises;
SYSTEM FAILURES 09/10 humanity's year of unprecdented crisis
as you may recall the first chapter of dr yunus master book (2008) on sustainability investment went through every major 20th century organsiational typology from the west and explained why it was not designed to compomud/sustain an end to poverty- the book then went on to publish the world's first mathematical model (bangladeshi social business) for compounding an end to poverty- so there really is little point for those who want to work with dr yunus and bangladesh to get drowned in networks with 1% sustainable social business and 99% other stuff unless we can quickly get to the segment of sustainable models we want to learn with and help replicate; this is where aid has gone oh so non-empowering, and the same syndrome has made microcredit knowhow transfers very difficult unless you are many years into knowing who's microcredit who;
I would suggest that one reason why the UK has with a few exceptions not helped dr yunus as much as eg france or germany is this systemic misunderstanding - both germany and france/monaco will be launching major social business funds in the next 6 months or so but as yet we don't appear to have one such UK gravity for knowing that we are looking at true social businesses
SYSTEM FAILURES 09/10 humanity's year of unprecdented crisis
as you may recall the first chapter of dr yunus master book (2008) on sustainability investment went through every major 20th century organsiational typology from the west and explained why it was not designed to compomud/sustain an end to poverty- the book then went on to publish the world's first mathematical model (bangladeshi social business) for compounding an end to poverty- so there really is little point for those who want to work with dr yunus and bangladesh to get drowned in networks with 1% sustainable social business and 99% other stuff unless we can quickly get to the segment of sustainable models we want to learn with and help replicate; this is where aid has gone oh so non-empowering, and the same syndrome has made microcredit knowhow transfers very difficult unless you are many years into knowing who's microcredit who;
I would suggest that one reason why the UK has with a few exceptions not helped dr yunus as much as eg france or germany is this systemic misunderstanding - both germany and france/monaco will be launching major social business funds in the next 6 months or so but as yet we don't appear to have one such UK gravity for knowing that we are looking at true social businesses
posted by chris macrae at
10:09 AM
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Yunuscentre.org news: Your Turn in BizEd
Jul 21 2009
Written by Munir Quddus
The B-School and Social Business
Today’s turbulent economy has underscored the fact that capitalism isn’t perfect. Even when capitalism is functioning well, there are chronic problems of hunger, poverty, homelessness, malnutrition, economic disparity, pollution, unemployment, illiteracy, and lack of healthcare for millions. I believe it is time to save the world from the undesirable consequences of unbridled consumerism and globalization. It’s time to look at alternate models of business—businesses that sustain themselves and the planet, instead of existing merely to maximize profit. It’s time for business schools to teach social business.
A social business is one that addresses an unmet need of the poor or is owned to a significant degree by the poor, or both. It works with the people it serves, helping them as they improve their own lives. Examples of social businesses are outlined in Creating a World Without Poverty: Social Business and the Future of Capitalism, by microfinance pioneer and Nobel Prize winner Muhammad Yunus.
Yunus expects that, eventually, entrepreneurs will found a range of social businesses, financed by both individual and institutional investors. The idea is to complement profit-maximizing businesses (PMBs) and nonprofit organizations with firms whose core missions revolve around redressing a societal problem. Although average investors seek high returns, that’s not the case for social investors, who typically are willing to receive a smaller return for the chance of doing good in the world.
To me it seems clear that PMBs, nonprofits, and the public sector all are at a disadvantage compared to social businesses. PMBs often draw short-term investors who care too much about maximizing wealth and too little about the environment, consumer safety, and the larger community. While some PMBs have started to remake themselves into socially conscious corporate citizens, their eventual gains are uncertain. Meanwhile, nonprofits and nongovernmental organizations (NGOs) have done a wonderful job addressing many social problems and attracting international support for their work. But their impact is often limited if they’re underfunded or inefficient. Finally, while the public sector is large and often effective, it has typically lagged in innovations and efficiencies.
In contrast, social business has as its primary mission the goal of solving a social problem. Like a forprofit, it is designed to be competitive and succeed as a business, while it benefits from private investors. Unlike a charity, it treats its beneficiaries as customers, not victims.
Successful social businesses already exist around the world. http://socialbusiness.tv An example is Grameen-Danone, established in 2007, which produces and sells nutritionally enriched yogurt for children in low-income households in rural Bangladesh. From design to operations, its mission has been to maximize social impact—improve the health of poor children, create jobs for women, add to the income of small farmers, and be environmentally friendly—while ensuring the company makes enough profit to grow.
there are three key challenges in developing hybrid businesses that have dual missions:
Their concepts, theories, and practices remain largely untested, and no legal framework exists to support them.
Social entrepreneurs have few role models and case studies to guide their efforts.
It’s difficult to determine what constitutes success, if the prime measurement is not going to be profits.
Munir Quddus is dean and professor of economics at the College of Business, Prairie View A&M University in Texas.
part 2 of Munir Quddus comments:
At least the first two of these challenges could be addressed by business schools with a bent toward social enterprise. If b-school deans take up the mantle of thought leadership in regard to social business, they can lead the way for an idea that might well transform both business and society., management education could be doing much more to advance social enterprise worldwide, particularly in two key roles:
Research. Professors could conduct research that offers practical guidance to social entrepreneurs. They could work out details of alternate business models, examine the existing regulatory and tax framework, and suggest policy changes that will encourage trends in corporate social responsibility. At the same time, they could write case studies about successful social businesses, which would become blueprints for new entrepreneurs.
Coursework. More schools could offer what Yunus calls a “social MBA,” which would cover traditional finance, marketing, management, and HR skills, but from a different perspective. Students in this program also could take courses focusing on the economics of poverty, maximizing social benefits to the poor, and finding solutions to social problems. This would give graduates not only the analytical tools they need to conduct business, but also the compassionate understanding they require to address the needs of the poor.
Many top business schools organize internal business plan competitions that focus on social enterprise, but I’m most impressed by a unique collaborative project called the Global Social Venture Competition. It’s run by the Haas School of Business at UC Berkeley in partnership with Columbia Business School, London Business School, the Indian School of Business, and Thammasat University of Thailand. Supporting partners include the University of Geneva in Switzerland, ESSEC Business School in France, The Yale School of Management, the Catholic University of Milan, and a consortium of business schools in Korea. The participants’ mission is to build on their networks of global leaders, entrepreneurs, and academics to change “the way business measures success.”
And yet, while some schools are being proactive, most of them are being reactive,
The history of ideas shows that for an idea to succeed, timing is important. I believe the time is right now for business schools to embrace the idea of social enterprise.
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