“Building Social Business” by Muhammad Yunus, published in 2010, delves into the concept of social business as an innovative solution to address social issues while providing sustainability. Yunus, a Nobel Peace Prize laureate, shares insights from his experiences with Grameen Bank and various other ventures to demonstrate the power of social entrepreneurship. The book is structured to educate about the framework, principles, and real-world applications of social business, advocating for a new way to address global social problems.

Yunus defines a social business as a cause-driven business aiming to solve a social problem rather than generate profits for shareholders. Profit is reinvested to further the social mission.

Grameen Danone, a joint venture between Grameen Bank and Danone, was created to address child malnutrition in Bangladesh by producing affordable, nutritious yogurt.

Yunus outlines seven principles for creating a social business:
– Aim for social benefit solely, not profit maximization.
– Financial and economic sustainability.
– Investors get back only their investment amount; no dividend is given beyond that.
– When the investment amount is paid back, profit stays with the business for expansion and improvement.
– Gender-sensitive and environmentally conscious.
– Workforce gets market wage with better working conditions.
– Do it with joy.

Grameen Veolia Water Ltd aimed to provide clean drinking water in Bangladesh. They followed all seven principles, particularly focusing on sustainability and fair wages.

A business plan for a social business should include clear objectives, target market, financial plan, and operational strategy.

Grameen Shakti provides renewable energy solutions in rural areas. Their business plan included affordable pricing, installment payments, and a large network of field workers to ensure reach and impact.

Yunus discusses different avenues for funding social businesses, such as:
– Social venture capitalists
– Philanthropic organizations
– Government grants
– Community investments

The Grameen America program receives funding from various sources, including philanthropic organizations, to provide microloans to low-income entrepreneurs in the U.S.

Yunus emphasizes the importance of measuring and reporting the social impact to demonstrate effectiveness and attract more stakeholders. Metrics could include health improvements, educational advancements, or financial inclusion statistics.

Grameen’s microfinance program measures success by monitoring changes in income levels, health, and education among its borrowers.

Yunus addresses several challenges faced by social businesses, such as:
– Balancing financial sustainability with social missions
– Overcoming skepticism from traditional investors
– Developing scalable models

While establishing Grameen Phone, Yunus encountered resistance due to the high costs of telecommunications infrastructure. The solution involved innovative financial models and partnerships to ensure affordability and reach.

Yunus provides numerous case studies, such as:
– Grameen Eye Care: This business provides affordable eye care, including surgeries and glasses, funded by service fees structured to cross-subsidize care for the poor.
– Grameen Intel: A collaboration with Intel to bring technological advancements that enhance education, health, and agriculture.

Yunus highlights the importance of collaborating with corporations, NGOs, and governments to amplify the impact of social businesses.

The collaboration between Grameen and Adidas aims to provide affordable shoes to the poor, leveraging Adidas’s manufacturing expertise and Grameen’s extensive distribution network.

Yunus envisions a future where social businesses mainstream and attract more entrepreneurs, investors, and institutions dedicated to solving social problems.

The concept of a Social Business Fund, proposed by Yunus, would aggregate resources to invest in multiple social businesses, promoting growth and innovation in the sector.

“Building Social Business” by Muhammad Yunus is not merely a book but a call to action for individuals, entrepreneurs, and institutions to redefine the way they address social problems. Yunus provides a comprehensive guide on structuring, funding, managing, and measuring the impact of social businesses, backed by concrete examples and actionable advice. By adhering to the principles and strategies outlined, anyone can embark on the journey of creating sustainable solutions with profound social impact.