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Social Business. What is it?
written by Michelle Guevara,
Government Liaison
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| photo credit Tanene Allison |
Here at WIL, we argue that many women entrepreneurs partake in business ventures that have benefits to society. But what is the difference between day-to-day business and a social business? The term was coined by Mohammad Yunus, and has been defined as "a cause-driven business" from which investors do not take dividends, or which is owned by the poor or disadvantaged. Presently, it is defined more broadly to include ownership by non-profits, individuals and B-Corps (in North America) but the essence remains the same.
While a definition is a good start, a great example is the best way to understand what social business is all about. An award-winning example of social business is Sustainable Health Enterprises - SHE (see video) . SHE has been receiving international attention for an innovation that is helping girls and women in developing countries to have better access to education and work.
Many women in the developing world cannot access feminine hygiene products, something that the majority of women in developed nations take for granted. As a result, they miss an average of FIFTY days of work or school a year! This puts these women at a huge economic disadvantage.
The solution to this problem is packaged as a dynamic little business model. The founders of SHE discovered that banana fiber is highly absorptive, and can be used to make maxi pads. SHE supports local women and organizations to develop the capacity to produce these maxi pads, and distribute them at 30%-50% less than the market cost. Suddenly, sanitary pads become affordable, women are able to increase their earning capacity, and their daughters don't have to miss classes, which leads to better conditions for the entire community = SOCIAL + BUSINESS.
To learn more about SHE, see SHEinnovates http://www.sheinnovates.com/ourventures.html
Very well done!
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