This week we discussed social business in more depth. We learned there are two main types of social business and some of the key defining attributes. The two social businesses are type 1: in which all profits are reinvested in the company, no dividends are paid, and no losses are incurred that strives to solve a social problem. The type 2 social business is a for-profit business owned by the poor that seeks to solve a specific social issue. I found it very interesting that according to Muhammed Yunus, no social business takes any profit for the wealthy investors. If investors receive anything back, then it is not truly a social business. On one hand, this makes perfect sense, however, when thinking about a previous lesson and how to entice investors to the social business you have to be willing to make it comparable to other offers from for-profit companies. It seems to me you would have to choose one plan or the other.
Week 11 Prompt: Muhammad Yunus would like poverty to only exist in museums. Is that possible?
I am not sure it is possible in the near future or even in the extended future. I believe this is something that would take quite a bit of change in the world. I can only imagine this happening after the second coming. As we know from scripture, things are destined to only get worse until Jesus comes. With all that written, I do hope that we will be able to make great improvements and strive towards a better world where poverty is a much smaller concern because it is so infrequent and there are so many willing to help. We can only help those willing to receive help and I do feel this is something that stands in some people’s way of getting out of poverty.
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