Yunus Social Business Fund Mumbai
About: The Yunus Social Business Fund Mumbai was created by Prof Muhammad Yunus (Founder of Grameen Bank and Nobel Peace Prize Laureate) to provide financial support to Social Businesses in India. A Social Business, according to Prof Yunus is a non dividend, non loss business solution to a social problem. It follows 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. Environmentally conscious.
6. Workforce gets market wage with better working conditions.
7. …do it with joy.
Social Business in action: To hear Prof Yunus explain Social Business through the example of Grameen Danone, a joint venture between Danone and Prof Yunus to solve the problem of child malnutrition in Bangladesh, please click here. For more information on social business please click here
Average Investment Size : Rs 25 lakh
Investment Period: Flexible
Target Market: India
1. Must explicitly work with or benefit the poor
2. Must be self sustaining, ie: cover atleast operating costs
3. Must be “selfless”. The owner/ investor/ promoter of the Social Business must not take any dividend after return of principal. Employees, however, should get a market wage.
4. Must be environmentally conscious