Social Business Entrepreneurship – The Social Business Model
This is a mathematically defined model -its quality standards have been
developed over 30 years in Bangladesh. SMBA alumni recognise Nobel Laureate Dr Muhammad Yunus and the 7 million co-laureate
members of Grameen Bank as the guardians of how to transparently practice this model.
The two primary rules to govern are:
In common with any sustainable business, there must be constant devotion to positive cashflow
2) Ownership is constituted around the most purposeful demand dynamic that a system can compound – no dividends
reinvest all in purpose
It is natural to ask who might want to
be involved in such an ownership system .
1 When Owners
Are the Most Needy Customers
Bangladesh, the origin of this model was the deepest community structure ever practised – where those in most desperate
need of the purpose were the owners. This is how the innovation of microcredit banking evolved as the world’s primary
entrepreneurial system design for ending poverty.
Where Charities or Life-Critical Public Services are embedded in Community.
In Bangladesh it also turned out that the social business
model achieved greatest performance loans that either global NGOs or national government. This evolved empirically when Fazle
Abed at BRAC discovered that up to 20% of Bangladeshi infants cold be saved from death through oral rehydration service. This
primarily required a nurse embedded in every village and neither national government nor global charities felt geared up to
do this, so BRAC demonstrated itself as the most productive service agent. Essentially this means that
social business model is a way to implement privatization where the funds are transferred from government but ownership is
among those in communal need while the operations are professionally structured building capacity into each community.
3 If as a billionaire businessman you decide to become a philanthropist,
you would now be likely to find the social business model much more purposeful than a charity model
4 If you are a global market leader, your brand might wish to transfer some of its communications
budget (often over a billion dollars a year) to the innovation and inspiration that it can flow through the Future capitalism
model of partnering one of net world’s deepest social business grassroots networks in an organization governed by social
business rules. It may be that the constitution can be capped by a negotiated maximum dividend but the principle is that this
should never be such that extraction rather than increasing sustainability is happening at the community level. Proper goodwill
valuation makes it clear that the “no dividend” future capitalism partnership is the best media deal ever struck
where first mover advantages and deep innovation capability on behalf of a life-critical need are what the partners marry
4a Designing the brand’s own social
business foundation – wholeplanetfoundation and virginunite
5 Small Social
Businesses and Start-Ups