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  • Writer's pictureSoundBeatsTime

7 principles of the social businesses

Updated: Mar 3, 2023

Muhammad Yunus, the creator of the concept of social businesses, described this type od economical activities as being:

  • Created and designed to address a social problem

  • A non-loss, non-dividend company that it is financially self-sustainable and profits realized by the business are reinvested in the business itself or used to start another social business, with the aim of increasing social impact

Let's see the 7 principles for the social businesses:

  1. Business objective will be to overcome technology access, environment, education, poverty and/or health, which threaten people and society; not profit maximization

  2. Financial and economic sustainability

  3. Investors get back their investment amount only. No dividend is given beyond investment money

  4. When investment amount is paid back, company profit stays with the company for expansion and improvement

  5. Gender sensitive and environmentally conscious

  6. Workforce gets market wage with better working conditions

  7. … do it with joy

How do you perceive the social business?

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