First part of the book that is relevant to our discussion is on the creation of a new NGO for ICT for the poor and the other part if on social business.
Here goes:
Creation of a new NGO to focus on ICT for the poor (I will add sustainable ICT)
First he talks about how ICT can empower the poor and help us go beyond just “creating jobs” but for “enabling enteprise”. He also talks about the need for pro-poor, pro-women and pro-youth initiatives around IT.
P.196 Chapter 9
“When it comes to the new IT, however, “business as usual” is not acceptable…..Instead social business must step up to take an important role in creating the next generation of IT.
I see individuals as the best bet for starting this effort, particularly, individuals who are IT enthusiasts and have a foothold in the worlds of business, technology, science, the arts, and academia. ……
P.197
I propose giving this potential movement a structure by creating an umbrella organisation to embody and support it. It might start as a virtual organisation, then later add one or more physical locations as the movement grows in strength, wealth and importance. Let’s call this organisation the Centre for International Initiatives for IT Solutions to end Poverty- or in brief IT Solutions to End Poverty (ISEP)………
P.199
“ISEP will be a dynamic network of institutions and persons around the world, all working toward common goals as articulated, defined and monitored by a management and steering team. ISEP will build strategic partnerships with leading IT companies and their staff, research and academic institutions, development agencies, health and educational institutions and professionals from many walks of life.
I AM HOPING THAT SOMEWHERE IN THE WORLD SOMEONE READING THIS BOOK WILL ACCEPT THE CHALLENGE OF LAUNCHING THIS ISEP INTIATIVE AROUND THE WORLD”
(Laina) Let’s do it! I would add the ISEP for ending poverty (focus on women and youth) and safeguarding nature and promoting local entrepreneurship
His FIRST part of the book- he defines social business. So this is the Yunus model of social business
Page xvi
What is a social business?
“It’s a business designed to meet a social goal. A social business is a business that pays no dividends. It sells products at prices that make it self-sustaining. The owner of the company can get back the amount they’ve invested in the company over a period of time, but no profit is paid to the investors in the form of dividends. Instead, any profit stays in the business- to finance expansion, to create new products or services, and to do more good for the world.”
p21
“We need to recognize the real human being and his or her multi-faceted desires. In order to do that, we need a new type of business that pursues goals other than making personal profit-a business totally dedicated to solving social and environmental problems”
P 22
“A social business is not a charity. It is a business in every sense. It has to recover its full costs while achieving its social objectives.”
“A social business is different. Operated in accordance with management principes just like the traditional PMB (profit maximising business), a social business aims for full cost recovery, or more, even as it concentrates on creating products or services that provide a social benefit.”
P.23
“A social-objective driven project that charges a price or fee for its products or services but cannot cover its costs fully does not qualify as a social business”
P.24
“A social business might be defined as a non-loss, non-dividend business….Profitability is important to a social business. Wherever possible without compromising the social objective, social businesses should make profit for two reasons: First to pay back its investots, and second to support the pursuit of long-term social goals.”
P.25
“Generally speaking, people will invest in a social business for the same kind of personal satisfaction that they can get from philantrophy. …but investing in a social business has several enormous differences from philantrophy. First, the business one creates with social business is self-sustaining, self-perpetuating and self-expanding. Once it is setup, it continues to grow on its own. You get more social benefits for your money. Second, investors in a social business get their money back. They can reinvest in the same or a different social business. This way, the same money can bring more social benefits.”
P.28
There are two kinds of social business
“The first I have already described: Companies that focus on providing a social benefit rather than on maximising profits for the owners, and that are owned by investors who seek social benefits such as poverty reduction, healthcare for the poor, social justice, global sustainability, and so on, seeking psychological, emotional and spiritual satisfaction rather than financial reward.
The second operates in a rather different fashion: profit maximising businesses that are owned by the poor or disadvanatged. In this case, the social benefit is derived from the face that the dividends and equity growth produced by the PMB (profit maximizing business) will go to benefit the poor, thereby helping them to reduce their poverty or even escape it altogether.”
P.38
“Specific sources of social business”
-existing companiesof all shapes and sizes will want to launch their own social business
-Foundations may create social business investment funds, operating parallel to but separate from their traditional philantrophic windows
-Indivdual entrepreneurs….
-International and bilateral developmment donors……may chose to create dedicated funds to support social-business initiatives
-Governments may create social-business development funds to support and encourage social business
-retired persons with wealth to spare
-young peole fresh out of college
“Young people all around the world, particularly in rich countries, will find the concept of social business very appealing…with so many potential sources, I predict that, within a few years, social business will be a familiar fixture on the world business scene.”