Grameen Bank in Bangladesh made capital available to the poor - especially women.
Its micro-credit program enabled millions to lift themselves out of dire poverty.
Its work also exposed the shortcomings of our traditional banking systems thereby flaggin the need for large scale systemic reforms.
What are the flaws in our economic system?
The Crux - Our reactions to poverty, unemployment and environmental destruction have been largely muted thus far.
These are either perceived as natural calamities completely out of human control or as unavoidable costs of economic growth.
Profit Maximisation - The central problem with the current form of capitalism is that it prioritises pursuit of individual profit.
As a result, only businesses designed around this goal are recognised and supported.
Greater Aspirations - Goals like the elimination of poverty & unemployment are currently being neglected.
These can be corrected if we replace the existing with a new system that more accurately reflects human nature, needs and desires.
Social business models are a beginning in this regard.
What is social business?
Freedom from profit pressures is primary to any social business.
It is different from charity as it is designed to generate revenues and thereby become self-sustaining.
It therefore does not need to constantly attract new streams of donor funding to stay afloat - which drains the time and energy of so many in the non-profit arena.
Social business offers advantages that are available neither to profit-maximising companies nor to traditional charities.
The simple economics and sustainablility of social business is already being illustrated by successful experiments worldover.
