What is social business?

22 Oct

Social business is a new form of business. It aims to provide an access to the poor and the under-privileged to the economic opportunities by complementing the objectives of profit making business and non-profit agencies. The investor can recoup his investment capital, but beyond that no profit is to be taken out as dividends by the investors. These profits remain with the company and are used to expend its out reach, to improve the quality of the product or service it provides, and to design methods to bring down the cost of the product or service. If the efficiency, the competitiveness, and the dynamism of the business world can be harnessed to deal with specific social problems, the world will be a much better place.

http://www.socialbusinessearth.org/definition-of-social-business/

First one is the business with the purpose of achieving the social objectives. For example, the product is aimed to benefit the poor people or address a social problem.
The other one is the business with the maximized profit. It belongs to the poor and they can get the direct or indirect benefits from it. For example, the poor produces one product and the product can be sold in an international market. So the people can get the worker benefits.

http://www.socialbusinessearth.org/types-of-social-business/

Social business is a far-reaching concept. It challenges many economic and social theories which run counter to the SB motivation. SB invites us to modify value system. The goal is to move towards developing a discipline of SB so that the future generation sees an economic and social system where a world without poverty is a realizable goal.

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