Muhammad Yunnus’ book Banker to the Poor opened my mind to a new type of philanthropy – venture philanthropy – where donations to a Microfinance Institution are loaned out, repaid at an extremely high rate, and then reinvested. The thought that my small donation not only made a significant impact to the loan recipient but also was recycled appealed greatly to my entrepreneurial bent.
Grameen Foundation Insights
The global movement to end poverty and hunger depends on the constant exchange of experience and ideas. That’s why we are eager to share our experiences with people like you.
Our Insights blog shares lessons learned from leaders in the field; examines efforts to bring resources and services to poor communities; and reviews how poverty-focused organizations are using data for greater impact.
At Federated Church, United Church of Christ, in Chagrin Falls, Ohio, we brought a biblical parable to life this past fall. We lived out the parable of the talents in Matthew 25:14-30. There, a master lends three servants varying amounts of money. Two of them invest their money and double it. One simply buries it and makes nothing.
Aha! Finally! I have been running Social Businesses for many years (though I did not use the term up until now), so it is delightful to have Professor Yunus not only give it a name, but shine a bright light on such a valuable free-market approach to addressing social change!
Muhammad Yunus is blazing another trail in his constant search for new and often unconventional ideas for confronting poverty, head-on. Just as Grameen Bank revolutionized banking with its bottom-up approach, I believe his latest initiative—social business—has the power to transform the way societal problems such as poverty, ill-health and even environmental degradation are addressed.
When he asked for a meeting with Nobel Laureate Muhammad Yunus, Franck Riboud, CEO of Group Danone, a global corporate giant (whose American brand name is Dannon), didn't realize that his concept of doing business was about to change forever. A few hours and a hand shake transformed the hard driving, profit-motivated executive, into an unwavering advocate of 'social businesses'.