“I am proposing to create another kind of business, based on the selflessness that is in all of us. I am calling it social business.”
Nobel Peace Laureate, Professor Muhammad Yunus
What is a Social Business?
A social business is 100% dedicated to solving social or environmental problems. It is a non-dividend company set up to solve a specific human problem. It operates like a normal company except for one main difference. 100% of the company profits are reinvested in continuing the social mission. And how is this different to a charity? A social business is predicated on a sustainable business model to deliver its mission; it is not reliant on grants or donations, instead focused on sales and generating diverse revenues. Crucially, the success of a social business is measured by its ability to solve the social or environmental problem; not the amount of profit in a given period.
The Seven Principles
Professor Muhammad Yunus further defines the concept of social business by outlining 7 principles: 1. Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) 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
Sport and Social Business
At Yunus Sports Hub, we harness the power of sport and social business to end poverty, unemployment and the climate crisis. Together with Professor Yunus, we believe that "Sport is powerful because it is basic to human beings." It is fundamental to our very being, played by billions of people all over the world. Sport has a power that both unites and inspires people; it reaches people like no other tool can. Our role is to combine this power with the principles of social business. There are already thousands of social entrepreneurs in sport, building products and solutions that are changing the world. Leveraging the experience and expertise of the Yunus network, we will create millions of others too.