Creating a World without Poverty- Social Business :: 

This blog can be treated as a case study based on the lecture given by Md. Yunus in Amory University 
Link: https://www.youtube.com/watch?v=O_6nHYSgHxs .

 He explained in the video how he developed the micro-finance model in the poor villages of Bangladesh which eventually got replicated all over the world. He set up a system of Social business whose main purpose is not profit maximization but serving the most pressing problems of the society.He explained how simple non collateral based loans can transform the lives of poor. He visualized " we have created a society that does not allow opportunities for those poor people to take care of themselves because we have denied them those opportunities".

He explained a model which was innovative and opposite to collateral based conventional banking system. While the conventional banks grade the loan takers on the basis of their creditworthy assets and worship the principle " the more you have, the more you get" , Md. Yunus gave maximum loans to the poorer strata without taking account their credit-worthiness ie. " the more your pressing need, the more you get"- so it can be said he set up a new kind of capitalism that serves humanity's most pressing needs.

Poor children given high nutrient curds as food supplement

The most common thing for any new business is understanding the demand. He understood that 'Opportunity' is the missing factor in the lives of the poor and this prevents them to transform their lives. So, by giving them loans, he was actually showing them the path to build their own fortune through small scale industries and services. In the video he gave an example where he met a girl with her mother- the latter got benefited from the loan and was able to help her daughter build a bright future of a doctor. He thus made us understand that the main stumbling block before the illiterate mother was "poverty" and "lack of opportunity" and not merit.


While going through internet I found a good point wise difference between the above two banking system:



Another important pushing factor he explained was that he pulled the corporate giants like Adidas and some water purifying companies into social business where the sole motive is not profit maximizing but to reach the poor solving the problem........... at one point he set the daunting target in front of Adidas that no one should be bare footed!!!

Thus the main take away from the video was that how a person without having any firm background in banking sector can understand the basic needs of the society and alleviate the problems faced by mass. He actually envisioned the holistic development of the society through "business"- the terminology we relate only to profit making. Also this is a system how through a business society is contributing to itself - only the case is that the distribution of benefits is equally enjoyed by all. That's amazing!!

Thus the whole lecture was very inspirational and motivating in understanding the basic necessities around us and how to create and deliver value to our society through some business model which can make "poverty" an extinct word in Dictionary-