Microfinance and Development PDF

MF 111 Microfinance and Development Mr. John Leo B. Dominguez, MBA Instructor Topic 7: Basic Features of MFI as a Social Business Social Business ❖the act of starting a business with the main...

MF 111 Microfinance and Development Mr. John Leo B. Dominguez, MBA Instructor Topic 7: Basic Features of MFI as a Social Business Social Business ❖the act of starting a business with the main objective being to help solve a social issue. Social Business ❖ is the process of developing innovative, new organizations to address social, cultural, and environmental problems. – Social Sector Network Social Business Traditional Business Vs  Social enterprises are Social Business revenue-generating businesses with a twist. Vs For - profit organization Non - profit organization  2 Goals: Social Business 1. To achieve social mission. 2. To earn revenue. Types Social 1. Trading Enterprises Business 2. Financial Institutions 3. Community Organizations 4. Non-Government Organizations (NGOs) and Charities The Emerging 1. Created and designed Concept of Social to address a social problem. Business 2. A non-loss, non- dividend company. 3. It is a financially self- sufficient, and business Prof. Muhammad Yunus are reinvested in the defines a social business as business itself (or used a business: to start other social businesses).  Microfinance Institution - addressing social problems in the society. What are social problems? A social problem (or social issue) is any condition or behavior that has negative consequences for large numbers of people and that is generally recognized as a condition or behavior that needs to be addressed. https://open.lib.umn.edu/socialproblems/chapter/1-1-what-is-a-social-problem/ https://www.alamy.com/social-issues-and-critical-problems-pictogram-icons-image214763638.html  1. Business objective will be to 7 Principles overcome poverty, or one or more problems (such as education, of Social Business health, technology access, and environment) which threaten people and society; not profit maximization. developed by Prof. Muhammad Yunus and Hans Reitz, co-founder of Grameen Creative Lab 7 Principles 2.Financial and economic of Social Business sustainability. developed by Prof. Muhammad Yunus and Hans Reitz, co-founder of Grameen Creative Lab 7 Principles 3. Investors get back their investment amount of Social Business only. No dividend is given beyond investment money. developed by Prof. Muhammad Yunus and Hans Reitz, co-founder of Grameen Creative Lab  4. When investment amount 7 Principles is paid back, company profit of Social Business stays with the company for expansion and improvement. 5. Gender sensitive and environmentally conscious. developed by Prof. Muhammad Yunus and Hans Reitz, co-founder of Grameen Creative Lab 7 Principles 6. Workforce gets of Social Business market wage with better working conditions. developed by Prof. 7. Do it with joy. Muhammad Yunus and Hans Reitz, co-founder of Grameen Creative Lab Source: https://www.facebook.com/bjdsaofficial End of Discussion Thank you!