Muhammad Yunus’s Concept of Social Business

Abstract

This research aims to study concept of social business of Muhammad Yunus by analyzing its meaning, aims and procedures. The researcher also analyzes concept of social business by using Dhammic socialism of Buddhadãsa Bhikkhu. The methodology used is documentary research. The study showed that the meaning of social business of Muhammad Yunus was operating any business based on a hypothesis of altruism by designing the business for social purposes, not for benefits. In terms of investment, the investors of social business will not receive any dividend, except the investment capital and they will only receive it when the business is secure and is sustainably operating. All products and service from this kind of business will be distributed to target customers who are poor with the reasonable price. The aim of social business is to solve the present persistent problems such as poverty, hunger and lack of education. It also aims to help developing the potential in poor people so they can help themselves and their family. The procedures of social business are not different from business in capitalism system. The entrepreneurs will design an organizational structure and manage their business but the benefit will not go to the investors. Those benefits will be used to develop social business to help poor or underprivileged people.

When using Dhammic socialism to analyze the concept of social business, the researcher found that there is a correlation between both concepts. By the three fundamental principles include ‘The good of the whole’, ‘Self-restraint and generosity toward others’ and ‘Respect and loving kindness’. It was obvious that from Grameen work process which to show respect in human rights. Not only members of Grameen but also a businessman, Muhammad Yunus created a role of entrepreneur whom authorized economic power to encouraging the entrepreneurs to reduce their desire, their selfishness and do their business for the good of the whole. Moreover, the concept of social business goes along with the concept of religion, support people to study religion and improve their own lives at the same time that highly correspond to wishes of Buddhadãsa Bhikkhu. Both concepts for development with this combination will be able to a choice of economic and social system.