What is Yunus Social Business?
Yunus Social Business is built on the philosophy of Professor Muhammad Yunus, the 2006 Nobel Peace Laureate known as the 'banker to the poor' for his foundational work on micro-credit. Yunus proposes that the poor can be independent actors, self-employed entrepreneurs who can even create jobs for others.
The new mechanism for growth lies in recasting business beyond a sole focus on profit maximisation to incorporate a focus on social goals. Yunus Social Business is a non-loss, non-dividend business focused on solving social problems.
Social business may be fundamentally of two types:
- Type 1 focuses on businesses dealing with social objectives only
- Type 2 may be any profitable business as long as it is owned by the poor and disadvantaged.
All those who design and run social businesses are social entrepreneurs. But not all social entrepreneurs are engaged in social business
(Yunus, 2007, 32).