What is Social Business

what is social business

According to Professor Muhammad Yunus Social Business can be defined as:

A non-dividend company that is created to address and solve a social problem.

In a social business, the investors/owners can gradually recoup the money invested, but cannot take any dividend beyond that point. The purpose of the investment is purely to achieve one or more social objectives through the operation of the company. No personal gain is desired by the investors. The company must cover all costs and be financially sustainable, while achieving the social objective in sectors such as healthcare, education, poverty, environment, housing, climate urgency etc. Once the original investment has been recouped by the investors, profit stays within the company to expand its outreach and increase the social impact.


Listen to Professor Yunus explaining Social Business here: