Research shows that among under 30s who have heard of social buiness model - this
is the most exciting development in management theory and practice for a generation. Although the model is as old as microcredit
itself, it first came to fame beyond banking and Bangladesh when Dr Yunus was invited to help form the global academy
of social entrepreneurs and became the skoll world championships favourite speaker. Early on google's founders started
parallel dialogues - if the social business is no-loss purpose compounding (instead of dividend extracting) modelm why
not for-profit charities too? Either way SB's idea : systems that sustain their cashflow
are necessary to compound purpose that gets ever better at serving those in most vital needs within its sphere of networking
knowhow -why not structure the original investment in a business around a loan from a group interested in the same social
challenge as you are, and once that's paid off reinvest all profits back in the purpose
Video to come with the guy who helped strategise
and project leadership of Grameen Danone, Grameen Veoila, Grameen GreenChildren Eye hospital.
Meanwhile can you help us form a social business IQ test
- suggestions of Q&A welcomed -map@smbaworld.com
example question:
Eg 1 what are the different ways social business generate sustainable revenue?
From
customers – this often needs a 10 times cheaper model
From transfering gov’s taxes from public service
above the community to in the community
From being a corporation’s partners in innovating something humanity
needs -aka Industry Sector Responsibility rankings - see eg futurestocks.tv
From operating a better franchise to a billionaire philanthropist than a charity model
By developing a hi-trust community bank
From multiple win-win-wins
with society
Other
Subquestion-
how do social business models end up serving quality at 10 times less
cost than any city slicker brand has ever done in its so-called free market
http://brand.blogspot.com/ exponential secret number 1 is train the local community to be the service workers instead of some profession above
the community which over time demands ever more fees
exponential secret number 2 is multiple channel pricing - come
and collect the product like water from our clean source you can have it at cost 1; if you want it delivered to your bedside
in a fancy branded bottle singing I am sponsored by the greatest olympics sportsman and the only one for fashionable people,
expect to pay 10 times more
exponential secret number 3 is empower open knowledge on vital maters particular those
that prevent risk compounding on to the most digitally divided
sadly there are other secrets too- like if your product
is conventionally served by global government to government aid then by the time the service trickles down to the community
in greatest need 90% of charity will have gone to the distribution costs, and worse the corruption (or katirinaesque blindness
going on at the top) in failing to come clean about that may make it very dangerous for anyone who truly wants to serve the
poorest of the poor to complain- this dismal 21st century lack of free market has been called white man's burden- one
of its centres of practice still seems to be the world bank, more usa epicentres come with conditional aid, and this will
continue to be so while the biggest public media of them all the BBC fails to do any investigation of this or other compound
banking disasters.
chris macrae what is needed if microeconomics is to save the world
editor
chris macrae - I have spent 33 years writing and advising on the following topic -please contact me with questions generally
or on books etc that I am currently co-editing
