1 What is Social Business? The most exciting entrepreneurial game people
play. |
To be a success, Social Business requires integration of 3 challenging solutions into
one organisational design:
A) Serving a purpose so important to human life
that you’re entrusted a free loan to bring the organisation to life | B) Prove business model’s sustainability by achieving a communal surplus of cashflow every cycle | C) Reinvest surplus to improve system or to replicate its networking reach with partners who will need
collaboration support |
If you are successful in focusing invention, sustenance and open replication of a Social Business, you
will be involved in integrating one of the most purposeful organisational systems in the world. However micro your organisation:
aim to become a market’s or a network’s centre of gravity capable of wholly attracting communal pride. Just
do it by truly connecting individual passions to make a difference - web weaving together the future of people’s
productive lifetimes.
FREE
MARKETING OF END POVERTY
Muhammad Yunus Nobel Laureate Acceptance Speech
2006
Almost all social economics problems of the world will be addressed through the social business ...
The
challenge is to innovate business models in such vital contexts as health care for the poor, financial services for the poor,
information technology for the poor, education and training for the poor, marketing for the poor, renewable energy for the
poor ------------------------------------ Gordon Brown to Muhammad Yunus, 10 Downing Street
21 April 2008: There is so much goodwill around what you are doing | Being a Social Business means that positive cashflow recycles every social business dollar invested over and over.
This is in stark contrast with the dynamics of the traditional charity with its one-time spend of every dollar fundraised.
However in many other respects, the social business strategy dares to selectively break with rules that MBAs are trained to
standardise.
A better for the world organisation
does not need to be fronted by image-making advertisements: reality-making is the purpose which a Social
Business inspires people to gravitate around.
The Social Business investment celebrates community-rising exponentials, ie sustainable growth over
time. The organisational system needs to be mapped the other way round from management powering over people. Quite simply,
empowerment’s authority to lead is seen through the transparency of an open win-win-win system - one that networks through
local franchise replication. It does this to continuously generate the most service buzz and to multiply more human goodwill
than competitors whose performance is only measured by quarterly extraction. |
HI-TRUST FLOWS
The quality of communal trust needed to flow through a social
business organisation cannot be built in a day. Entrepreneurial revolutions capable of exponentially progressing humanity’s
lot usually take many years of iterative development by a small team who are prepared to learn by doing. Dr Yunus’ first
social business emerged from 7 years of social action teamwork. When the founding team of four, who still work together at
Grameen, started providing loans to poor women in 1976, they never imagined that they would build a bank let alone the worldwide’s
happiest networking system –for more on that see: what is microcredit?
What Grameen’s founding team did from the outset was to plant village centers for 60
poorest women borrowers at a time to communally voice their needs :
· to develop themselves
as successful business people
·
to prioritise collective actions
· to honour micro investments in taking their community out of poverty by ensuring the highest repayment rates
banking has ever seen
From these members’ dialogues and communal choices, we can map the DNA
of Grameen’s gravity of “banking for the poor” and so the compass of investment and innovation responsibilities
of what has become the collaboration world’s favourite brand.
Grameen’s double-loop support for poor women is designed to lovingly and relentlessly interconnect :
· Empowerment of their own peer to peer self-confidence in becoming microentrepreneurs
· Designing vital service franchises whose sustainability and economics gains from open communal
replication instead of individual reinvention of the wheel.
Grameen’s catalogue of social business franchises provides an exciting record of how to sustainably
map thousands of parallel communities out of poverty through a third of a century’s search to end poverty. In Bangladesh,
social business modelling is the core organisational typology for 25000 Grameen employees, and thanks to BRAC and other energising
social business networks more than 100,000 grassroots community servants of sustainability and micro-investment. (See
Creating a World Without Poverty: Social Business, Future of Capitalism, by Muhammad Yunus 2008)
Alongside the famous microcredit, Grameen’s
mature social businesses, each grounded in at least 14 exciting years of exponential-up sustainability, include:
- DIY village homes with rainproof roof
and pit latrine (whose health advantages won an early prize Aga Khan award for architecture)
-Fish farming taken over from the government
– once poorest local villagers had partial ownership of ponds, 10 times more fish production was possible as villagers
guarded the pond from thieves and others disturbing breeding seasons
-Developing the brand “Grameen Check” to empower fair trade village textile production
-Mobile village
telephone ladies whose connections across the 100000+ village centres (Grameen banks grassroots knowledge hubs) have become
the worldwide benchmark for ending digital divides
Banker for the Poor becomes Internetworker for the
Poor
In 2008, California’s
museum of technology awarded Dr Yunus its number 1 prize as hi-tech humanitarian – a prize previously reserved for the
likes of Microsoft’s Bill Gates & Intel’s Gordon Moore. In the pursuit of ending Eastern poverty, Yunus insisted
that huge social business value could multiply around a franchise of the village telephone lady operating a shared mobile
phone - similar to how telegram offices in the 19th century connected the wild west.
This led Grameen Bank to make one of the
smartest sustainability investments of our generation of going global. Yunus’ entrepreneurial wit
seized on early 1990s global consultancy groupthink as likely to be 100-fold wrong in forecasting that Bangladesh would only
use quarter of a million mobile phones. So, The Bank for the Poor picked up a nationwide mobile licence for cents in the dollar.
A decade later, over 30 million Bangladeshi’s use mobiles and with India their countries have
become number 1 in designing mobile businesses. Those whose leadership strategy is to leapfrog over the high costs of service
businesses whose outlets are tied to bricks and mortar. Unlike banks of a bygone era that specialise in foreclosure, sustainability
investment banks like Grameen help people to foresee the future’s connections which an open knowledge networking age
can co-create – see eg the Grameen Solutions partnership with an Indian company http://bankabillion.org |
Collaboration networks have even more to celebrate when we see heroic social business innovations motivated
by responding to the most desperate of prospects. Among 100+ million people nations, Bangladesh
has the most to be concerned over the risks of global warming. Its low lying lands are likely to be the first to be washed
away. So it was natural for Grameen Bank to assign its number 2 social business entrepreneur to solar, biogas and other carbon-zero
services. Since 1996, the Grameen Energy teams have been developing a sustainability exponential with ever greater excitement.
In 2008, they installed more solar units than the whole of the USA. By 2012, they intend to have
created 100000 green jobs for villagers. We can race towards thriving carbon negative economies if we treat the knowledge
these social businesses have openly systemised as a collaboration gift to the world. If your nation has sunshine, why reinvent
the wheel of green job creation when yes we can make a fast start by seeing Bangladesh
as the collaborative developing nation that wants to help take network economics way above zero-sum games.
PRICING PUZZLES
End-poverty practitioners like Dr Yunus,
and academics like CK Prahalad, have found that serving a vital need to the bottom billion peoples may involve continuous
innovation of an organisational system that offers the same basic standard of safety that rich citizens are used to demanding
but at 10 times lower cost. That takes deeply caring relationship understanding to compound collaboration goodwill flows between
service workers, customers and societies as you unite to determine the future of what is possible through true sustainability
investment.
Thriving social businesses from community banking, to ending unnecessary blindness by providing cataract operations,
have found that one key to staying low cost is to base all communal exchanges on trust – no lawyers fees taking an ever
bigger and more complex slice of every transaction.
There are many other interesting pricing puzzles to work through such as asking different customers
to pay for what they can afford as well as for what level of personal customisation they demand. Moreover, the social business
franchise often finds a way to vocationally train the most disadvantaged people to create lasting jobs in the community. This
helps to explain why the social business employee continuously enjoys seeing the lifetime difference she or he is capable
of making through dedicated work. The first time I met a Grameen villager she said: have you met a Nobel
prize winner before, and held out her hand. Such is empowerment’s true meaning when it comes to the social business
of microcredit branding.
Over time the consequence of social business transparency is a hi-trust organisational system –or network
of goodwill partnering organisations - where people employ their discretionary energies to serve and love their work with
a zest for productivity that only communally purposeful Micro’s entrepreneurs and intrapreneurs get to measure, as well
as serve, learn and know.
RECOMMENDATIONS
Seeing is believing. Go and visit Bangladesh particularly if you are
young enough to have time to intern on a social business project.