The Grameen Social Business Model and Its Poverty Alleviation Methodology
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Social business model can be used as a powerful tool to strengthen struggling economies in the developing nations. The theoretical and empirical studies on poverty alleviation tools are utilized in this case study that examines new ways to deal with poverty in both developing and industrialized nations. After a supposed raving success of micro finance in Bangladesh and around the world, the pioneer of the initiative, Muhammad Yunus has introduced the idea of social business to the world. This model that purports the model of a non-loss, non-dividend company is emerging as a stepping stone to the alleviation of poverty. The notion of conducting business with a social objective as opposed to a profit-maximization objective are diametrically opposed and in many ways sustainable. The renowned Grameen Bank is one such example that has helped create many opportunities for the poor in rural Bangladesh through means of micro-loans. It has been a positive force of change in Bangladesh that has empowered poor women to find economic freedom. Therefore, the work of social businesses should be utilized in tackling key issues that are a major source of economic and social deprivations for people around the world. Using the strength of field observation of a social business model design in addition to preexisting theoretical and empirical studies, the paper aims to analyze the effectiveness of social businesses for the poor in Bangladesh.