Monday, April 21, 2008

How to Solve Poverty

Social Business Enterprises are the key to ending poverty and solving all forms of social problems. In a recent article in the Wall Street Journal, Dr. Yunus, the founder of Garmeen Bank, described how his newest partner Garmeen America has begun to reach out to America's poor and create entrepreneurs.

Social Business Enterprises are based on the benefit maximisation principle. They are operated as a business enterprise with the objective to pass on all the benefits to the customer. SBEs are non-loss-non-dividend companies that compete with profit maximising enterprises and other social business enterprises.
1. it needs to have social objectives: e.g. health, education, poverty, environment or climate urgency
2. it needs to be owned by the poor or disadvantaged, e.g. women, young people, or long-term unemployed
3. After having had their investments paid back, investors may not take profits out of the enterprise.

The idea of social entrepreneurism is not new, it has been around for centuries, you probably use several social businesses each day and just don't realize it. (examples: MFCU, YMCA, KPBS)

Creating a world without poverty - Muhammad Yunus

Mr. Yunus also emphasizes access to credit as a basic human right, placing it as No. 1 when compared to other human rights such as the right to food, shelter, work, and health. He argues that through microcredit self-employment is possible. Self-employment can generate income, which in turn can provide food, shelter, and health care.

"The whole thing is about making those opportunities available, so that they can change their lives." -Muhammad Yunus

Never Forget

Building 7 WTC 2001

Events - The San Diego County Community Coalition