JBS Vol 09. Num 2. 2007 - Changing the World Using Social Business: Breakthrough Ideas from Nobel Laureate Muhammad Yunus

Although capitalism is the economic system of choice in the 21st century, most critical analysts have come to realize that capitalism is not perfect. Free markets often stumble and importantly, have not been able to solve some of the most vexing problems faced by humanity – poverty, malnutrition, economic disparity, lack of health care, unemployment, and environmental degradation – to name a few. Professor M. Yunus steps in with some innovative ideas presented in a new book. He has proposed a new business model that he calls “social business” run by social entrepreneurs not for maximizing profits for its owners and shareholders, but for solving societal problems. This article examines the idea of social business and its many implications. The literature on the subject of creatively using markets to battle poverty and other social problems is bubbling with innovative ideas and practices. These trends have the potential of changing capitalism as we know it and usher in a much improved world for all people.