— Interview with Muhammad Yunus, Nobel Peace Prize Laureate and founder of the Yunus Centre, Bangladesh
As the founder of Grameen Bank, Muhammad Yunus’ idea of microcredit has spread worldwide and he is also credited with developing the social business concept.
If we talk about social business, we talk about business that is delinked from personal profit. So, if anybody wants to solve some social problem in a sustainable and ethical way, as we started with microcredit, then it’s very attractive to use the social business concept.
One area where we should encourage the governments to help with ensuring the right to capital for everybody is to create a separate legislation to create banks for the poor. As long as we only have laws for banks for the rich, you cannot push the entrepreneurs to create banks for the poor.
The other challenge is unemployment. We designed microcredit for the needs of the first generation, but now we are adjusting it for second generation, which is much more capable and educated. Unemployment goes across the social layers, so it has much more appeal. We should gradually be focusing on how microcredit, equity, or social business can play a role in dealing with unemployment. As we move forward, the distance between social business and microcredit will be within the same concept, one is the subject of another.
If you can solve unemployment you can also solve the problem of state dependence by creating options. Our aim would be zero dependence (of the people) on the state. How do we believe it can be done? To unleash entrepreneurship is absolutely critical. Microcredit can help. Social business can help. That’s my business. I use all these concepts in small scale and then in the process I define the methodology, which can be used for the next 500 people, the next 5 million people.
The real challenge is how to cut off the external part of microfinance funding. How do you become self-reliant yourself?
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- Executive Summary
- Where’s the Map?
- Global Data Show Diverging Paths
- Integrated Health and Microfinance
- Saving Groups
- Graduation Programs
- Agricultural Value Chains
- Conditional Cash-Transfer Programs
- Digital Finance
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