Atlantic International University: Social Business Essay Analysis

This essay provides a comprehensive analysis of Muhammad Yunus's book, 'Building Social Business.' It delves into the core components of social business, as defined by Yunus, highlighting its benefits and principles. The essay explores the evolution of social business, emphasizing its role in addressing social problems and promoting sustainable economic models. It examines the seven key principles of social business, including its focus on overcoming poverty, financial sustainability, and reinvestment of profits. The essay also addresses the cultural barriers that can hinder the implementation of social business models, particularly in the context of women's involvement in Bangladesh. Furthermore, it discusses the concept behind social business, the steps involved in establishing a social business, and the strategies for attracting initial investors. The essay concludes by emphasizing the importance of social business in creating opportunities and fostering positive change in society, as inspired by Yunus's vision.

Running head: Business management
Business management
Name of the Student
Name of the University
Author Note

1Business management
1. Introduction
The main aim of this essay is to describe the main components that are associated with the
building social business book that is written by Muhammad Yunus. This essay will focus on
describing the main components associated with building social business. Social business is a
term that is used by the author for describing the benefits that are mainly generated by an
organization and that stays within a company. This is mainly used for the purpose of describing
investment amount that is paid back and also focuses on describing the company profits and
expansions. In the book the author stated the way concept of social business emerged. The first
phase that was taken by the author is by helping the poor people in mid seventies. According to
the author Muhammad Yunus the main concern was always the poverty factors that are faced by
the population. The author believed that new kind of capitalism must be the one that has the
potential to serve the humanity with their basic needs.
2. Social business
Social business is mainly referred to the self sustaining and the owners must remain honest and
committed towards the original investments that are made by the people. In the book the author
described the social business as an association that will be able to address the social problem and
a non dividend company. This will be self sustainable and profits that are being realized by the
business are being reinvested within the business itself. The main concern of Yunus was to
develop a business that will consider maximizing the profits as major concern. Moreover the
business owners should also avoid receiving any business profits. In terms of philosophy it can
be stated that the social business is divided into human beings, selfishness and selflessness. The
author stated that with the popularity of the concept of social business many will switch their half

2Business management
money from profit-making businesses towards the social businesses. This will act as one of the
major sources for funding the social business. The author stated in his book that “Some of the
government money that is traditionally spent on social programs will be used on social business.
Social responsibility funds established by profit-making companies can also be available for
social businesses.” Thus social business will ensure a better benefit towards the humanity and
will ensure a better benefit margins. According to Yunus the main characteristics that are
essential for starting own social business includes creativity among themselves. Each and every
person should possess an entrepreneurial spirit with a storing work ethic, the owner must have
the ability to put all the ideas into actions and lastly the person must possess the desire that will
make the world a better place to live. With the help of this personal attributes it becomes easy to
start a social business.
The major steps that are essential for starting a social business is that the individual must identify
a certain problem that is needed to be fixed within a time. The business must keep the idea small
so that it becomes easy to identify the problems. It becomes easy to resolve the mall problems.
However the project needs to be determined effectively so that they can ensure better benefits
towards the development process. There are several solutions that can be generated once the
problem is being identified effectively. Once the objective is being identified it becomes
essential to come up with a product or service that will be able to meet needs and will ensure that
the problem is being mitigated. The organization must ensure that they are having employees
that will be efficient enough to determine the initial failures until an effective formula is being
derived. After this there is a need to create a business plan that will support the business and will
ensure that the challenges are being motivated effectively. Thus with the help of social business
it can be stated that the challenges will get mitigated.

3Business management
2.1. Principles of social business
There are basic seven principles that are being described by the author in his book includes the
business objectives that are important for overcoming the poverty. There is a huge need to
overcome the major challenges that are faced by citizens that includes problems associated with
education, technology access, health and environment. The main reason behind mitigating these
problems is that it possesses the ability to threaten the people and society in order not to
maximizing profit. The second principle that is associated with social business is that the
company will attain sustainability towards the economic and financial conditions. According to
Yunus the investors will get the invested amount back rather than getting the dividend value. In
the third principle this factor is being described. The fourth principle states that the investment
amount is being paid back towards the investors and the profit remains within the organization
for the purpose of expansion and improvement within the organization. This will ensure that
proper performance is being conducted within the organization. Whichever the company is
implementing the concept of social business they must include environmental factors
consciously. The sixth principle that is being described within the book states that the workforce
will get the market wages with better working conditions. The social business is needed to be
performed effectively with full dedication than only it will be able to provide benefits towards
the organization.
2.2. Benefits of social business
The major benefits that are offered with the concept of social business is to maximize the
benefits towards the organization and will ensure that similar amount of profits are provided
towards the investors. It has been observed that government has minimum interest towards

4Business management
solving the problems such as poverty. Thus with the concept of social business the benefits can
be obtained effectively. Apart from this the business competition will be enhanced with more
diversity in the services and goods provided. It has been observed that the concept of social
business is less vulnerable towards the market fluctuations. This will help in revitized the
existing economy to a great extent. Apart from all this the Yunus has also stated that the social
business has a major contribution towards the new opportunities. These are the basic benefits
that are offered with social business.
2.3. Cultural barriers in the concept of social business
It has been observed that the women’s associated with the Bangladesh rural communities mainly
focused on handling the household works. This lead to creation of barriers in developing the
business functions. Thus it is important for the organization to train the women’s so that they can
perform their activities effectively. By providing proper education it is expected that the
women’s will be able to provide better support towards the careers and will ensure better
performance. According to the Yunus it becomes essential to educate the people so that they can
work in a order that will help in achieving the benefits. It has been observed that after marriage
the husband does not allows their wives to continue their jobs. Thus it becomes essential to
educate the husbands so that they can support their wives to work and this will also ensure that
they are able to handle the money. The Grameen organization has started the culturally incentive
concept for providing better diversity towards the people. Thus it is essential to evolve the
culture with time so that it can ensure better profits towards the people. Thus the book was able
to teach the concept related to flexibility by maintaining proper central goal. With the help of
social business there is a huge need to immerse within the culture of the people so that they can

5Business management
serve towards the intended people. This also ensures that effective advantage of differing
opportunities in different markets is obtained by the organization.
2.4 Concept behind social business
Social business is mainly described by the Yunus for ensuring better benefit towards thee people.
The book has described the way an individual can start social business. Ynus has encouraged the
concept that will describe the way problem can be identified and the way they must be resolved.
According to the author Yunus (2010), it is quite easy to determine a group of people who needs
help for the purpose of empowerment. Thus it becomes essential to develop an effective social
business that will provide a better access towards the markets by giving better job opportunities
or by offering with better income strategies. Before setting up a social business it is important to
determine the existing social business so that it becomes easy to set up a model that will be able
to serve the community with effective solution. With the already existing idea there will be no
need to reinvent the idea. This will make the social business concept effective and will ensure
better resolution towards the people. The best partners for starting a social business are a NGO
or any charity that will be able to understand the problem and will ensure proper benefit is
obtained. Apart from this the other partners for starting a social business includes an investors,
technology partner, human resource partners and assessment partner. With the help of these
partners it will become easy to provide success.
According to the author Yunus(2010), the business plan specification must be done effectively
before setting up a plan. The individual needs to determine the products or service that is going
to be offered towards the people. This also ensures identifying the products and the way that is
going to be generated. The individual needs to identify the intended customers and they should

6Business management
set a price that will be affordable towards the customers. The price is the key factors that are
responsible for attracting the customers. The competitors needs to be identified so that it
becomes easy to provide better offers towards the customers that will ensure that the customers
are attracted towards the business. Yunus has also stated that it becomes essential to identify the
way promotion needs to be done. Once the promotion is being done then it becomes easy to sell
the products. Before starting any business it becomes essential to determine the initial expenses
that are needed to be invested on the business and the expected revenue. Revenue plays crucial
role and thus it becomes essential to determine the revenue at early stage.
2.5 Ways to attract initial investors
The author has described different measures in which the individual will be able to attract initial
investors. The individual must have a clear idea about the social business and the objective
behind setting up the social business. The steps that will ensure a successful business plan needs
to be identified at early stages. In order to attract the initial investors it becomes essential to
structure a campaign that will help in raising a speed capital. The individual must be creative
enough so that they can bring their own innovation within the social business. With the help of
social business the individual will be able to enhance their business concept and will help in
attracting initial investors. The individual can create websites, twitter feeds, social networking
and different blogs that will attract more customers and investors. Yunus stated that there is a
need to create an experienced management team that will be able to bring proper benefits
towards the organization. According to Yunus “It’s good to make ask with a management team
already in place. Those ways you can use don’t be afraid to ask family and friends!!! Combined
experience as a selling point when speaking to potential investors.” The legal structure that is
important for starting a social business is to follow the traditional structure of a profit business.

7Business management
Yunus stated that with the help of traditional structure it will become easy to maintain the
flexibility as compared to the nonprofit organizational structure. Thus it becomes essential to
determine the main challenges and legal structure so that they can provide better benefits towards
the social business. According to the author “our world is ripe for a much needed changes.” The
author has also explained the concept by describing the half built theoretical framework of
capitalism. This includes the concept of associated with social business.
The idea of social business was being originated from the simple concept: “Whenever I wanted
to deal with a social or economic problem, I tried to solve the problem by creating a business
around it.”
Grameen bank initiated several concepts that have the potential to help lot of poor people with
serious problems. Grameen bank has created several programs that will help in overcoming the
social issues. The major initiatives that are developed by Grameen companies will ensure better
performance towards the poor families. This will ensure that each family is being facilitated with
better benefits. This will also ensure that the poverty challenges are being overcome effectively.
The poverty measures that are being taken by Grameen bank includes Grameen telecom and
Grameen phone, Grameen Shakti, Grameen Kalyan, Grameen Fisheries and Livestock
Foundation and Grameen Sikkha, and Grameen Uddogg and Grameen Shamogree.
Grameen bank is one of the nationwide banks that aims at serving over 8 million borrowers and
that are mostly women. Initially the Grammen Bank aimed at providing effective loan money
towards the men and women. This included providing better benefits towards the children of
borrowers.
3. Conclusion

8Business management
Thus from the above essay it can be stated that with the help of social business it will become
easy to manage the profits within the organization. The essay has described the major concepts
associated with the social business. In the essay the structure associated with the social business
has been described effectively so that it can ensure better performance. The main aim of social
business to maximize the profits without keeping any dividend profits. This will ensure that an
effective measure is offered towards the people. The main philosophy that was behind the Yunus
researches to remove the poverty from the society. Moreover according to Yunus it becomes
easy to develop social business by following the traditional approach. The essay has also
described the benefits that are likely to offers with social business so that it becomes easy to
manage the activities. The Grameen bank was also developed for the purpose of providing
support towards the poor people. Throughout the book Yunus has made an argument that stated
the concept related to social businesses. The way social business can be beneficial more than
charity organizations. The main reason behind choosing charity is that it encourages dependence
among those being served while social business puts those being served in the position of being
an active participant in the economy by encouraging entrepreneurship. Thus it can be stated that
with the help of social business ideology it will become easy to manage the major benefits. The
easy has provided a better knowledge that will help in understanding the concept of social
business effectively.

9Business management
4. Bibliography
Yunus, M (2010). Building Social Business: The New Kind of Capitalism that serves
Humanity’s Most Pressing Needs. PublicAffairs. New York.