SOCIAL BUSINESS

SOCIAL BUSINESS

Although both this term are different and will not make much sense when put together. Social is something related to philanthropy and Business is related to profit making. Both this terms are contradiction to one another. Social is giving and Business is taking. The Magic is how it will work if we put it together.  I am not the first one to discover this term so don't want to interpret that its something new or innovative concept. Although the concept is there from long time and if any one has to be credited for this is the noble literate Muhhamad Yunus. The term may be old but has more of its demand and magic to show in current senario.

In country like India where poverty is deep rooted. Neither Government, nor the NGO nor the Multilateral units like UNO/World bank are going to serve the purpose. Whenever the question of irradication or control measures regarding the poverty is raise we point our figure to the Government and pass the common comment that the government is not capable to help and its sole responsibility of the government. But does it really make sense to blame the government is the question to introspect. In country like India where there is huge population, unemployment poverty is bound to show its effect.

Business is all about profit maximisation and that's not illegal, we all do busineses to earn profit. The term social business is also about making profit, here the profit may not compulsorly of monetory but may include the benifit for society, people working and for people using the products and services, or benitift even to the environment. Let me explain it in brief. Social business model is same like the regular business the only difference is the profit through manufacturing the byproducts which is the social need of the human being and also available at cheaper rate. In nut shell its all about providing the services which have social benefit.
Nature of business:- Public or private ltd, Investors come together invest their money in the business model. On earning profit the money is paid back to the investor as per their investment till the breakeven point
No Dividend:-  Once the break event point is achieved and all investors get their invested amount, the amount further earn will not be divided among the investors as a dividend but will be keep with the company to further make the expansion plans or make the products and services more standard and at cheaper price.
Quality and Pricing:- As the aim of the business is social the products and services will be of good quality. keeping the social cause in mind the prices are also lower as compare to other products. Price can be lower because no marketing is done and being the advantage of social business people buy this product to help grow this kind of business.
Targeted Products and Services:- As per the name the product and services has to have social benefit in mind specially targeting the BPL population which cant afford the normal available products and services provided by profit making units.
Competitive advantage:- This business model has huge competitive advantage because being social people have more simpthy toward the products and the quality and price has also advantage over other profit making business.

Eg:- One such example which i am looking forward to start is Skill development program. The social thing is employment generation and the business model is about Training and Skill development. Basically the Skill Development Program (SDK) target the BPL population to help them generate the employment by imparting them some skills required at entry level job. Broadly speaking the skill included are vocational like, ITI, Computer/Laptop/Printer/TV/Mobile repairing and maintenance, Mechanical diploma in repairing the motorcycle and four wheeler, Civil diploma in civil working skills, Fine arts, Home maid products for the married women and many more.
By setting up of SKD at District and Taluka level we can generate the employment and reduce poverty.

Perhaps this may be very small initiative but will defiantly have large impact in reducing poverty. Lets do business Socially..or a Social Business i hope now this two word don't contradict and can go hand in hand.