The Other Business Model
Business isn’t only about how to create huge profit, but it could be done in different way accompanies with social responsibility. At least this other business model has been proved by Professor Muhammad Yunus, 2006 Nobel Peace laureate and his microfinance concept which is well known as Grameen Bank. Started in 1976 with a mere $27 from his own pocket, Grameen Bank today serves more than six million poor people, 96 percent of them are women, by giving loan, savings, insurance and other services. The bank is fully owned by its clients. This microfinance models much helps people to alleviate poverty by giving them collateral-free loans and other financial services to support income-generating businesses. As each loan is repaid, the money is redistributed as loans to others, thereby multiplying its impact. Moreover in January 2008 Muhammad Yunus introduced a new term in business line called social business which is social-objective driven. In his new book : “Creating a World without Poverty”, Yunus laid out the framework for two social business models and urged others to adopt them in eradicating global poverty. In the first model, the company’s mission is achieved through creating or supporting sustainable “non-loss” business enterprises where all of the profits are ploughed back into the company rather than being distributed to shareholders. The second social business model is one which is profit-driven, but owned and operated entirely by the poor, who receive all company profits.