The Concept of “Social Business”

The history of social business goes back to the approaches of Muhammad Yunus trying to end poverty. Muhammad Yunus tried to find different approaches that could decrease poverty and other social and environmental problems. Whenever he wanted to deal with a social or economic problem, he tried to solve it by creating a business around it, and that is how the idea of social business was created. A social business could be considered a selfless business whose purpose is to bring an end to a social problem. In this kind of business, the company makes a profit, but no one takes the profit. Because the company is dedicated entirely to the social cause, the whole idea of making a personal profit is removed from this business (Yunus & Weber, 2011). This idea can somehow be quite challenging because in today’s world everyone wants to make personal profits. 

However, social businesses are quite important and very useful in society. These businesses can provide cash, commodities, and services to impoverished people who might not otherwise have them, as well as make it easier for them to find work. They have a significant chance to channel business power into environmental and social reform activities. As a result, these businesses can contribute even more to society.

The seven principles of social business, are relatively straightforward to apply. These principles are very important since they define what a true social business aspires to achieve and what is its goal (Yunus & Weber, 2011).

1. The first principle indicates that the objective of social businesses is to overcome poverty or address problems (such as education, health, environment) that threaten people and society. 
2. The second principle concerns the financial and economic sustainability of the business. 
3. The return on investment is governed by the third principle. Investors get back only their investment amount and no dividend is given beyond the return of the original investment. 
4. The money earned over and above the investment is expected to be put back into the company to help it improve and expand. 
5. A sustainable environment is meant to be a priority for social businesses (the company must be environmentally conscious). 
6. Those who work for the company as employees will get market wages with better-than-standard working conditions.
7. Because the purpose of a social company is not to maximize profits, it will only be started by people who have a great desire to make a beneficial impact on society and the environment. This means that business will be conducted in a cheerful and stress-free atmosphere. Do it joyfully!!

Social businesses have a wide range of effects that include not only solving societal problems but also providing indirect benefits to the entire population. These benefits could include higher economic growth as well as the creation of new jobs for people. People in society enhance their personal lives and earn a better reputation and recognition. As a result, social enterprises businesses can have a great impact on society (Taylor, 2018). 

It is important to keep in mind to not confuse social businesses with standard for-profit businesses. As mentioned in the principles part, social businesses do not have profits in focus (like standard businesses do). However, even though profits are not the purpose of these businesses, it is crucial to remember that social businesses are not charities. A social business’s owners are not altruistic donors.

In reaction to societal pressures in their particular areas of operation, social businesses have evolved. The businesses operate in equally hard conditions, and their existence is not guaranteed. They may, nevertheless, be able to achieve success by embracing innovation and forging beneficial partnerships. It's worth emphasizing that social businesses are actively developing in breadth and volume as a result of many worldwide changes, and they now handle a wide range of social challenges. In the world that we are living today, it has become extremely difficult to solve or decrease all the social and environmental problems caused by the terrible economic conditions and post-pandemic conditions. In developing countries, the situation is even worse, with the majority of people living in poverty and on the verge of hunger. On the other hand, with the rise of COVID-19 and the increased environmental challenges such as climate change and global warming (and even war recently), social businesses are truly needed and very important in the reduction of the damages that are being caused by the above-mentioned factors. 

There is a saying that says “Small progress is still progress”. This means that one social business cannot solve all the problems, but it still makes an impact. It is quite understandable that not all people have the opportunity to create a social business, but that doesn’t mean that they cannot make a change/ a difference in solving the problems that the world faces. In his famous book “Building Social Business”, Muhammad Yunus states: “We have entered into an age when dreams have the best chance of coming true. We must organize the present to allow an easy entry to the future of our dreams. The more impossible the goals look, the more exciting the task becomes.” The spirit of social business is not only the creation of the business itself but is also the spread of knowledge and culture to be a responsible individual for the society and the environment surrounding you. We all can be responsible individuals; we all can help the world to become a better place and maybe in the future, we can as well become social business owners.