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Objective of Social Business

Features and goals

A Social Business is featured to be as follows:

  • To be designed and operated to pass on all the benefits to the consumers.
  • To be operated without incurring losses.
  • To be operated competing with Profit Maximizing Enterprises (PMEs).

1. Profit making by an SBE shall be consistent and desirable because:

  • To generate enough surplus to pay back the invested capital to the investors as early as possible.
  • To generate surplus for —
  • (i) Expansion,
    (ii) Improvement of quality,
    (iii) Increasing efficiency through introducing new technology,
    (iv) Innovative marketing to reach the deeper layers of low-income people and disadvantaged communities and
    (v) Undertake research and experimentation to improve and diversify products and services.

2. Features of Social Business Organizations (SBO)

  • Innovation: the SBO belief that everyone is creditworthy
  • Revolution: the SBO rejects the traditional methodology of the conventional banking
  • Objective: the SBO provides banking services at the doorstep of the poor it serves
  • Means of production: the SBO provides physical and non-human inputs (e.g., micro credit, machines, tools, training) to poor people
  • Operant conditioning: the SBO empowers borrowers through positive reinforcement
  • Asabiyyah: the SBO promotes the unity, conscience, and social cohesion among group members through social solidarity
  • Syllogism: the SBO applies logical appeal to increase integration among group members
  • Commodity fetishism: the SBO applies social relationships to increase social capital
  • Self-employment: the SBO provides organizational support to create income-generating self-employment
  • Collective consciousness: the SBO uses moral force to create two-dimensional social entrepreneurs
  • Oneirology: the SBO help to create a world without poverty, illiteracy, diseases, and slum dwellers