In Business for All
Interview with Muhammad Yunus, author of twist Social Business: The New Kind of Capitalism That Serves Humanitys most(prenominal) Pressing Needs
by: Art Dalglish | from:Â AARP Bulletin | July 29, 2010
It all started with a gift of $27.
In 1974, Muhammad Yunus was an economicals professor atChittagong University in Bangladesh when a combination of war, natural disasters and an international oil crisis toppled his country into a devastating famine. How could he simply teach elegant theories of the emancipate market, he thought, while hunger and poverty threatened the lives of millions?
Venturing into the countryside to prove with societal programs, he found a woman in the village of Jobra who was borrowing from a local moneylender to finance her tiny business handcrafting bamboo stools. But she could borrow only at a very high interest rate and by agreeing to sell her work to the lender at a scathe he set, leaving her with almost no profit.
Yunus and his students found a total of 42 villagers trapped in the same lovely of arrangement. He realized that he could release all of them from their economic bondage by reaching into his pocket for the equivalent of $27 and paying off all their loans.
Inspired by this example, Yunus created Grameen brim to stool low-interest loans to the poorest of the poor, people with no collateral or recognition history. Today it serves more than 8 million people-97 percent of them women-in every(prenominal) village in Bangladesh, extending more than $100 million a month in loans averaging about $200. Grameen is also helping to diffuse the idea known as microcredit throughout the world-and in 2006, Yunus and the posit were awarded the Nobel Peace Prize for their accomplishments.
Seeking new ways for the magnate of the market to help the poor, Yunus landed on the concept of social businesses. These companies operate like any other, competing in the marketplace to make a profit, with two big exceptions: The investors agree not...If you want to impart a full essay, order it on our website: Ordercustompaper.com
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