The New Kind of Capitalism that Serves Humanity's Most Pressing Needs (Book Review Sample)

Book Discussion
Name
Institution
"Building Social Business: The New Kind of Capitalism that Serves Humanity’s Most Pressing Needs" by Muhammad Yunus
Introduction
In his book, "Building Social Business: The New Kind of Capitalism that Serves Humanity’s Most Pressing Needs”, Yunus explains how social business has transformed from theory to an exciting practice, embraced by top corporations, social activists and entrepreneurs across South America, Asia, Europe and the US. He shows how social business change lives; presents practical assistance for people who want to build personal social businesses; enlightens how public and company policies must adjust to give room for the social form of business; and illustrates reason social business maintains the possibility of redeeming the failed promise of free-market venture. Yunus defines a social business as a free-loss, Non-dividend enterprise created to deal with a social goal in the highly controlled marketplace existing today. It is different from a non-profit enterprise since the business should seek out to make a modest turnover however this can employed in expanding the company’s network, enhance the product and service progress or means to sponsor the social undertaking.
When and where the research was conducted?
This book, ‘Building Social Business" is one of many examples of business concepts to eradicate poverty by improving the worth of the underprivileged’s motivation to work and by creating self-sustaining and effective answers to most pressing needs. The author uses his experiences as initiator of Grameen Bank which is one of the first microfinance companies to articulate social business issues. From late 1970s Grameen Bank has been processing small credit to entrepreneurs in poorest places of his country Bangladesh. To drive the points home Yunus he puts his experience in this most recent publication. However, Yunus should be applauded since lending activities have now extended worldwide.
In his publication, Yunus demonstrates how child malnutrition could be tackled by concealing critical micronutrients in a enjoyably flavored yogurt called Grameen Danone; he goes ahead to explain how inexpensive shoes for the rural people referred to as Grameen Adidas fight worm infections; how health services could be provided for cataract surgery at a prepaid fee for people losing their eyesight which is termed as Grameen Health Care. Yunus maintains that have discovered a new type of social business in the sphere of non-profit businesses started with the aim of answering the needs of the poor. He is cautious to differentiate it from profit making capitalism, communism, cooperatives, government, socialism, charity and corporate social responsibility. He maintains intellectual property rights on microloans, even though Accion International came first before Grameen Bank by more than one decade. With an intellectual mix of donations and profit motivation Accion formed businesses such as MiBanco, BancoSol and Compartamos, which have fully grown more dynamically than Grameen Bank, mainly because, they did not adamant on opposing profits or group lending.
Kinds of people the author studied
As a pioneer in the world of banking, specializing in microcredit Yunus has learnt a lot about investors. He explains that social business in his native Bangladeshi is an oxymoron as a business where making money comes first with the aim of sucking money out of customer as much as possible. Since he has a bank which deals with investors he has most of the issues at his finger tips. He claims a new business has embraced has approach in which social-benefit-maximizing ventures and profit-maximizing ventures coexist. Besides, a social business would function more like a profit-maximizing enterprise in that the entire organization grows economically and increases profits. He also talks about Social Marketing, Social Entrepreneurism Corporate Social Responsibility, NGOs, and different new sorts of organizations that are emerging. The only disparity is that the business's shareholders and investors may be re-accruing their initial venture rather than receiving dividends. He also studied and explained social entrepreneurship, charity organizations, Social enterprise, non-governmental organizations, and non-profit organizations maintaining they are not the similar. He the author also studied the capitalists and therefore addresses some of the primary limitations of capitalism which he says all are familiar with when people make out profits by exploiting customers and when people cannot explain their success of unsustainable growth for instance, from environmental damage, labor abuses etc. he claims capitalism also does not offer solutions to poverty since poor people do not enough profit from it.
Kind of social inequality the author addresses
Areas of social inequality that the author addresses in his book include social goods and service, Property rights, Healthcare and Housing. Social inequality exists since their the lack of wealth in particular areas excludes these people from acquiring the same housing, health care, etc. as the wealthy, in areas where access to these social goods relies heavily on wealth (capitalism). Over the last decade Yunus has realized how micro lending has led to wealth creation in various spheres of businesses, whose aim is social good as opposed to profit. He terms it "social business”. He addresses the concerns of capitalism which he claims is profit oriented even when people are exploited by the business owners. He also states that most people carrying out capitalism cannot explain their economic success from unsustainable growth which is marred by factors such as environmental damages and labor abuses. To life the lives of his country men, Yunus founded Grameen Bank which is one of the first microfinance companies. His intention was offer practical assistance by giving out small credit to entrepreneurs who want to build personal social businesses.
He also demonstrated how poverty and multi nutrition could be tackled by micronutrients in an enjoyably flavored yogurt called Grameen Danone. Social inequality and poverty have direct impacts on the social, mental and physical well-being of people. It is therefore essential to note that social inequality and poverty are closely related. Those who live in disadvantaged societies, where exist under-funded social and physical infrastructure, undergo poor health, resulting to miserable life of lower socio-economic class. The impacts of social inequality also spill over into community causing multi nutrition, frustration, poverty and poor health conditions. With this in mind, his bank initiative has come up with certain measures to solve these underlying issues. Yunus goes ahead to explain how inexpensive shoes for the rural people referred to as Grameen Adidas fight worm infections; how health services could be provided for cataract surgery at a prepaid fee for people losing their eyesight which is termed as Grameen Health Care.
He further discusses notion on what social concerns an individual might try to solve by means of social business. Some common situations include hunger, poverty, healthcare, disease and pollution. While giving solution to major problems like the ones mentioned above may not be achieved, Yunus advises that individuals should start small with clearly defined plans. Offering employment, for instance, to six people is a very practical objective for an entrepreneur who aims at starting new social business. Yunus, in a few words, looks for ways of reducing poverty by putting up self-sufficient businesses with an aim of generating social benefits, rather than maximizing profits. He's ready to point out that great problems present great opportunity. Yunus thinks that social business has the capability of reversing current situations of social inequality by getting the poor to the normal economic system. He believes it can change society by possibly ending poverty in the near future.
Which questions the author tries to answer?
Yunus offers authentic insight into universal poverty and a unique viewpoint on the means in which social businesses can exist side by side with traditional enterprises to eradicate poverty and enhance the lives of the "citizens of the world." He also presents several ideas, together with nuts-and-bolts realistic advice for individuals who are ready to enter into the social business world. In the coming years, it seems assured that social business will turn out to be an integral part of the economic formation and will positively transform the lives of several people." the pioneer Yunus enlightens how he thinks social enterprise can cash in what he considers as the futile promises of free markets." Yunus takes it as a great concern to explain the idea, tackling several questions he often gets bout social business.
He claims it is different from a normal enterprise in that all profits are taken back into the enterprise to generate additional social benefit, as opposed to paying profits out as dividends to owners or investors. He evaluates Social Business to several other endeavors and sorts of companies committed to building social good. For instance, unlike charities, Social Business is financially self-sufficient, not having to dedicate key resources to receiving donations. It is eye-catching for individuals who wish to support social courses because the funds they put into a social business they receive them back, and could be re-invested in order to receive extra social returns. In general Yunus answers the question of what might develop into a major shift in how capitalism works. Social Business seals a significant gap created by capitalism while it can also coexist alongside it.
What I liked about the book
Despite of the tone coming from the book, I consid...