Picture: Disadvantaged Indian women working as road workers.
Very poor and disadvantaged people are unwelcome customers and shunned by most companies: they do not get electricity, credit, house loans, healthcare or else. If they are lucky they receive benefits from the government or emergency aid by NGOs, and that’s about it. Really?
A few years ago an economic professor, Mr. Mohamed Usus, in Bangladesh started an experiment in giving loans to very poor Bangladeshi women for their small businesses. The loans were small ranging from around 50-100$ and they had to be repaid by 2$ a month. Mr. Yunnus was surprised to learn that the loans were diligently repaid by the poor ladies even though everyone told him beforehand that they will not be repaid. He then started without government aid Grameen Bank which gives out loans to very poor people. He started to give loans for sewing machines and finally loans for houses, as many houses are used by farmers also as storage. The bank has grown rapidly over the last few years and it is completely self-financed as it charges an interest. So far it has built 600’000 houses in Bangladesh for 300$ a piece and over 25 percent of all Bangladeshi households have received a loan from Grameen Bank. Mr.Yunnus is a social entrepreneur.
But what is a social entrepreneurs? They are people who have a vision of how to make the world a better place and use business models to make them real. Most often everyone else will tell them that their idea is not feasible, that the poor people will not pay for their services but despite the odds they prevail. The businesses range from selling solar panels in Brazil, providing mobile phones in India to establishing a help line in India, as David Bornstein, author of the book How to change the world told the audience at the Gottlieb Duttweiler Institute in Rüschlikon.
Social entrepreneurs are not traditional NGOs as they do not raise funds for re-distribution. They use marketing to spread their idea and charge for their services and products. They compete for ideas and are not protected by the government. They tend to be small and nimble organizations and are working hard to become self-sustaining. Grassroots social entrepreneurs bridge the gap between big charities, the government and business. They compete for ideas and are exposed to market forces. No wonder that efficiency is familiar concept to them!
Or check out my friend's website http://www.myimpact.ch/
Read more on David Bornstein’s website: http://www.howtochangetheworld.org/
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