Muhammad Yunus and Social Businesses

We've been discussing different kinds of business structures in Grade 10, but one type of structure that is definitely on the rise, but not fully recognized is social business. Social businesses often make a profit, but their goal is not profit maximization. Often, though, not always, the profit made is reinvested into the social business to try to extend its impact.

A great example of a social business model is micro-credit. Micro-credit involves granting small loans to entrepreneurs in communities underserved, or not served at all, by the traditional banking industry. The loans help fledgling businesses get started or expand and can make a real difference in alleviating poverty. One of the most well-known micro-credit lenders is called the Grameen Bank. Its founder is Muhammad Yunus and he has recently written a book called "Building Social Businesses." If you want to watch a video documentary about the impact of microloans on the poor, click here.