yunus centre social business presentation

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Dhaka, 2011

Creating A World Without PovertyYunus Centre – Social Business

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Contents Page

A. Yunus Centre At a Glance

4

B. The Concept Of Social Business

8

C. Examples Of Existing Social Businesses

17

D. Future Of Social Business

24

E. Get Involved

27

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A. Yunus Centre at a Glance

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Our Vision

Our Mission

Putting poverty into poverty museums

Promoting and developing Social Business to put poverty into poverty museums by year 2050

Yunus Centre Statements

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• Promoting Social Business• Social Business Centres,

institutes, and chairs• Social Business Funds• Creation of SB partnerships• Grameen Social Business

website

Centre of Social Business

International Secretariat• International Scheduling • Media, press releases • Yunus Centre website

Yunus Centre Key Assignments

Events Yunus Centre Library• Archiving• Documentation• Photos and films• Gifts and prizes

• Yunus Centre Forum• Social Business Day• Social Business Plan

Competition

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• Grameen Bank, Grameen Danone, Grameen Veolia, Grameen Yukiguni Maitake, Grameen Intel, Grameen Uniqlo, Grameen Fibreglass, Grameen Healthcare Services, Grameen Distribution, etc.

Social Businesses

• Yunus Social Business Centre @ University of Florence• Social Business Chair at

HEC, France • Yunus Centre at AIT,

Thailand

University Collaborations

• Yunus Fund Monaco• Grameen Credit Agricole

Microfinance Foundation• In process: IDB, JICA

Social Business Fund

Social Business Funds

• East Timor• Kohlapur, India• Caldas (with GCL)• Haiti (with GCL)

Holistic Social Business Movements

Yunus Centre Social

Business

Yunus Centre - Social Business

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B. The Concept of Social Business

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Social business is the missing piece to combine the market with the fight against poverty and other social ills

Current economic theory only postulates a single dimensional human being – The profit maximizer

Grameen's Answer

The Need for Social Business

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• Grameen Bank

Addressing the poor

• Precursors: – Grameen

Shakti– Grameen

Shikka

Sustainability

• Grameen Danone

• Grameen Veolia

• Others

Social Business

Social Business Background

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A social business is a non-loss, non-A social business is a non-loss, non-dividend company designed to dividend company designed to address a social problem. The address a social problem. The profits are used to expand the profits are used to expand the company’s reach and improve the company’s reach and improve the products and/or servicesproducts and/or services

Social Business Definition – Type I

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1. Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which threaten people and society; not profit maximization

2. Financial and economic sustainability

3. Investors get back their investment amount only. No dividend is given beyond investment money

4. When investment amount is paid back, company profit stays with the company for expansion and improvement

5. Environmentally conscious6. Workforce gets market wage with

better working conditions7. …do it with joy

Social Business Principles

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Investment

Product

Sales

ProfitCycle of Social

Business

Return of initial

investment

Initial investment

Reinvestment

Source: Yunus Centre

Identifying a

social need

How Does Social Business Work?

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Type I Type II

Definition: Refers to a social business that focuses on providing a product and/or service with a specific social, ethical, and/or environmental objective

Example: Grameen Danone

Definition: Is a profit-oriented business that is owned by the poor, who can gain through receiving direct dividends or by some indirect benefits

Example: Grameen Bank

Social Business Types

142010-07-25 Yunus Centre SB presentation v13.pptSource: Yunus Centre

Int. Social Business Partnerships

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C. Examples of Existing Social Businesses

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Example – Grameen BankOverview• Grameen Bank

offers financial services for poor women to fight poverty in rural Bangladesh (Only in Bangladesh)

Model• Grameen Bank

provides micro-loans to poor women for the initiation of income-generating activities

Structure• More than 8

million borrowers

• 2,563 branches• More than 8

billion US$ disbursed

Opinions• "The only place

where poverty should be is in museums"

• "The poor themselves can create a poverty-free world…" Prof. Yunus

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Example – Grameen DanoneOverview• For Bangladesh:

Fight malnutrition among children and women

• For Danone: Affordable products for poor, capture new market segments

Model• Product:

Affordable yogurt containing 12 nutrients missing from malnourished children

• Price: Cross-subsidization

Structure• Grameen Social

Business Joint Venture

• Grameen Group: G.Byabosha Bikash, G. Kaylan, G. Shakti & G. Telecom

• Danone Group

Opinions• "If a child eats

2 cups of yogurt per week, in 9 months he/she can gain the missing nutrients in his/her diet."Prof. Yunus

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Challenges Faced By Grameen Danone

• Target Market – how to ensure that the poor get the yogurt

• How to ensure participation of local suppliers

• 2007 food crisis – increase in the price of milk

• Lack of general infrastructure

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Example – Grameen GC EyeCare Hospitals Overview• For Bangladesh: – To provide

access to affordable eye-care for rural Bangladeshis

– To eliminate needless blindness

Model• Product: Access

to affordable treatment of cataracts and other eye diseases

• Price: Cross-subsidization, flexible pricing

Structure• Grameen Social

Business Joint Venture

• Grameen Group:• Grameen

Healthcare Services

• Green Children Foundation

Opinions• “…we must

create an affordable healthcare system for the poor in Bangladesh”. Prof. Yunus

• “We expect this system to serve all of the people of Bangladesh, no matter what their income level is…”. Prof. Yunus

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Challenges Faced By Grameen GC EyeCare Hospitals

• How to ensure that doctors remain at the hospital

• Ensure that the service is affordable to the poor

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Example – Grameen Caldas Overview• For Colombia:

Overcome poverty in the depressed region of Caldas after coffee crisis

Model• Product: Pool of

social businesses addressing the social needs of the region

• Microfinance projects

• Place: Region of Caldas in Colombia

Structure• Grameen Social

Business Joint Venture

• Grameen Group: Grameen Creative Lab (Wiesbaden)

• Government of Caldas, Colombia

Opinions• "In ten years

there is not going to be extreme poverty in Caldas”. Mario Aristizábal,Governor of Caldas

• “All business does not have to be done only to maximize profit, there can be other businesses, businesses aimed exclusively at solving problems”. Prof. Yunus

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Challenges Faced By Grameen Caldas • Working with governments: bureaucracy/red tape

•SB regulations do not exist: How does the govt. of Columbia regulate the project?

• Ground breaking project:lack of institutional know-how

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Grameen Social Business Network

Potential Projects:

Grameen Creative Lab / Social Business Centres: •Germany,•Argentina, •South Africa, •Tanzania

Projects: University Partnerships:•CSU CI, HEC, NSU,•University of Glasgow, University of Glasgow Caledonian, •Kyushu University, Rikkyo University, AIT, Bocconi University, •University of Florence, European Business School, •Kathmandu University, Franklin University, UPENN,•McGill, Zayed University

• China, • East Timor,• Albania

• India,• Russia,• Pakistan,

• Haiti,• Ghana

• Colombia, • Bangladesh,

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D. Future of Social Business

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Social Business Funds1 Definition• Social business funds are created

to provide financing for social businesses in a pre-determined sector or location

• Social business funds function as Social Businesses themselves

• Investors do not get any dividends

2 How it works• The fund borrowers must repay

their loan amount, with interest, and the fund, in turn, pays back the investors

• The interest paid by the borrowers will help defray the administrative cost

4 Future of Social Business Funds

• Once established, the fund will raise additional capital from investors enabling it to expand its reach

• Additionally, the loan amounts repaid by the borrowers will go to replenishing the fund

3 Purpose of Funds

• To finance the development and creation of new Social Businesses

• To expand the scope of an existing Social Business

• To replicate an established Social Business or to convert an existing entity

Overview

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Further Initiatives

Social Stock Exchange

Social MBA coursesNext

Initiatives

SB Ratings & Journals

Social Impact Indicators

SB Regulations

To exchange news and research about social business

To measure the social impact of the social businesses

To measure the performance of the social businesses

To teach about social business as an alternative to profit maximization businesses

To regulate the social businesses´ practices

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E. Get Involved

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"Building Social Business"New Book! New Book! The book examines the roles of social businesses in today’s global economy

3. Provides the background, challenges, and successes of specific social businesses

2. Explains the principles of social business

1. Begins where Creating a World Without Poverty ended

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Get Involved With Social Business Be a distributor

Tell others about your experience here

Be informedLearn about social business activities that are happening via the Grameen Social Business website

Be part of a networkFind out what other social business institutions, creative labs, etc. are doing in your area and network with them

Be activeOrganize a social business club or host a debate to discuss the principles of social business

Simply Start!

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Thank you very much!!! Your Yunus Centre... www.yunuscentre.org, www.grameensocialbusiness.org, Twitter, Facebook

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The End.