Building Social Business Models: Lessons from the Grameen Experience

Abstract: Grameen Bank, founded in 1976, is a pioneer in the development of microfinance and has established about 30 companies aimed at alleviating poverty. In this article we will trace the gradual development of expertise in the development of social business model by Graeme. This requires new value propositions, values ​​and profit equations, as well as business model innovation. In this article, we will present five lessons learned from this experience: Three resemble traditional business model innovation - challenge traditional thinking, find complementary partners, continue experiments We will clearly define social benefit targets clearly and early on the shareholders, and shareholders. We propose that these new business models - shareholder replacement by stakeholders as the focus of value maximization - enable capitalism to solve the overwhelming global problem.

Social business is more than just a theoretical concept. There are social enterprises all over the world including Grameen affiliates such as Grameen Bank and Grameen Danone. Reflecting the potential social benefits of this new business form and the possibility of economic development, other social enterprises just newly emerging emerged. Social enterprises can play a strong role in domestic and foreign economies, but there is still a long way to achieving this goal. Today, the assets of all the social enterprises in the world will not even exceed parts of the world economy. This is not because of the lack of growth potential but conceptually because people do not know their existence and do not leave space for themselves in the market. They are regarded as freaks and are excluded from the mainstream economy. People do not pay attention to them - indeed, they do not actually see them because their eyes are blinded by the theory taught at our school

Building social causes ~ 34 ~ In the past three years, Grameen Danone has gained valuable experience in this business. Sales are growing steadily throughout the year after the start of the business - and no one is predicted to go bankrupt due to economic factors. The company had to redesign the sales and distribution system, redesign the business model, change product formulas, encourage new customer segments, and introduce new products to individual consumer groups. In 2010, we will return to a steep growth curve, and we hope that this will last long. In February, we exceeded the magical output of 100 tons a month. This is very close to the level necessary to pay all operating expenses and generate a surplus to pay fixed costs. At the Bogra factory, we are planning to increase the production capacity of 200 tons per month by increasing the facilities, and in November 2010 the full operation started at the 2nd plant near Dhaka.