Our working definition of a Social Business
A Social Business is a socially driven profit-making entity with a positive impact on society either directly through the nature of the endeavour or through a rigorous social mindset.
The importance of Social Businesses
Today, almost everyone is aware of the new challenges we are facing such as a growing population, migration, globalization, climate change… Headlines in the media often recall such issues but what is truly done to allow for a change? It is in this context that the concept of social entrepreneurship was developed by the Nobel Peace Prize laureate Professor Muhammad Yunus which suggest instruments to actually be part of the change. The SBC strongly supports and believes in the definition of Social Business given by Muhammad Yunus which stipulates that a social business is first of all a cause-driven business.
According to Yunus, “the investors/owners can gradually recoup the money invested, but cannot take any dividend beyond that point. The purpose of the investment is purely to achieve one or more social objectives through the operation of the company, no personal gain is desired by the investors”. The nature of objectives compromise a large spectrum of domains such as addressing health, alternative financial services, nutrition, infrastructure, renewable energy, human rights etc. For a business’s endeavour to be social is not sufficient. We believe that in order for a business to be “social”, all relevant stakeholders must adopt a new and right mind-set which focuses on creating a positive impact starting within the organisation itself. Adopting such an approach offers a new dimension for capitalism in which the business model does not strive to maximize profits but rather to serve humanity’s most pressing needs. Although the Social Business is pioneering in its aims, it is traditional in its management which is accessible to anyone. Finally, it is important to highlight that the Social Business club does not limit the concept of social businesses to developing/poor country as often associated as such. Instead, we believe that working towards a more sustainable and better future can start on a small scale and in anyone’s own environment. Indeed, by adopting a Social Business model it is a great alternative to achieve such objective and to have a positive impact on society.
If you are interested in learning more about social entrepreneurship, please use the following literature on the topic:
Youtube – “What is social entrepreneurship?”
Foundation – Schwab Foundation for Social Entrepreneurship
Academic website – Yunus center, to learn more from the creator of Social Businesses
Academic paper – Social Entrepreneurship: Definition and Boundaries, by Samer Abu-Saifan
Examples of Social Businesses Clubs:
Capacity => Empowering refugee and migrant entrepreneurs. Because we are all human.
The Paradigm Project => The Business of Changing lives.
Embrace Innovations => Healthtech with Heart.
Choba Choba => Taste the revolution
4ocean => One ocean. One mission. Let’s end the ocean plastic crisis together.