BUSINESS AS MORE THAN PROFITS

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IRVING WLADAWSKY-BERGER -[Dr. Muhammad] Yunus is a Bangladeshi economist
and the founder of the Grameen Bank, which he created in 1974 to help
impoverished borrowers start small businesses and obtain an education.
He first loaned $27 to a small group of very poor Bangladeshi women, and
gradually increased the number of loans. He pioneered the revolutionary
concept of micro-loans to help the poor in developing countries.  With
these micro-loans, the poor are able to start very small businesses, and
they can gradually improve their economic situations and start moving
out of poverty. Grameen Bank now has more than 7.5 million borrowers,
and about 2/3 of the families receiving loans have risen above the
poverty line. 

The banking system pioneered by Muhammad Yunus is now being used in more
than 100 countries. . .

He does not view the Grameen bank and related activities as charity.  He
truly views them as businesses, albeit a somewhat different kind of
business from the classic ones based on maximizing profits. . .

He writes, "Many of the problems in the world remain unresolved because
we continue to interpret capitalism too narrowly.  In this narrow
interpretation we create a one-dimensional human being to play the role
of entrepreneur.  We insulate him from other dimensions of life, such as
religious, emotional, political dimensions.  He is dedicated to one
mission in his business life - to maximize profit.  He is supported by
masses of one-dimensional human beings who back him up with their
investment money to achieve the same mission."

But, he later adds, "everyday human beings are not one-dimensional
entities, they are excitingly multi-dimensional and indeed very
colourful. Their emotions, beliefs, priorities, behavior patterns can be
more aptly described by drawing analogy with the basic colors and
millions of colors and shades they produce." He wants to create a new
type of entrepreneur, who is not just interested in profit-maximization
but who is also totally committed to make a difference in the world and
give a better chance in life to other people, not just through charity,
but by creating social businesses.  These businesses may or may not earn
a profit, but like other businesses, they must not incur a loss.  They
must become self-sustaining.  Grameen Bank is such a social business. 

http://irvingwb.typepad.com/

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