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Social Business Practice in Bangladesh & in other parts of the World

(Evaluating performance and sustainability in Bangladesh)


Submitted to Nuzhat Nuery Lecturer Department of Marketing University of Dhaka

Submitted by Muhammad Kutub Uddin Rayhan ID: 26 Section: B B.B.A. (15th Batch) Department of Marketing University of Dhaka Cell: 01672879176 E-mail: raihanmkt@yahoo.com Research Output: Final Project Report for BBA Program Start-End of the study: 10th January, 2013 to 10th March, 2013 Expenditure Funding: Self Fund

Executive Summary:

This is the age of capitalism where rich are becoming richer and poor are becoming poorer and where 20percent of the people capture the 80percent of national wealth & the remaining 80percent people has access to only 20percent of national wealth. If this continues the world will face extreme in the future where many people have to starve. But Novel laureate Dr. Muhammad Younus has come with the concept of social business to send the poverty to museum within 2030 and he want to it start with Bangladesh. There are two kinds of social business. One is a non-loss, Non-dividend Company devoted to solving a social problem and owned by investors who reinvest all profits in expanding and improving the business. And it is called Type I social business. The second kind of social business is a dividend-paying company, like conventional for-profit companies, but owned either directly by poor people or by a trust that is dedicated to a set of pre-defined social causes. And it is called Type II social business. Since profits that flow to poor people alleviate poverty, such a business is by definition helping to solve a social problem. Grameen Bank, which is owned by the poor people who are its depositors and customers, is an example of this kind of social business. The main objective of this study is to find out the practice of the social business companies in Bangladesh & an evaluation of social business practice of other parts of the world. And finally to answer the question whether social business will sustain in Bangladesh where the main motives of any organization is to earn money & gain profit. The report will show the performances of different established social businesses throughout the country.

Introduction:

Social Business, a concept developed by Dr. Muhammad Younus, is on expanding today. Its practice is being integrated into international business practices and hence is becoming one of the determining factors for solving social problems. According to the Father of this concept, Professor Dr. Yunus, Social Business is a new form of capitalism & a new kind of enterprise based on the selflessness of people. This business is dedicated to solve social, economic, and environmental problems that have long plagued human kind-hunger, homelessness, diseases, pollution, and ignorance. Social businesses currently operating in our counry are the following: Grameen Bank BRAC Grameen Danone Grameen Veolia GC Eye Care Hospital Grameen UNIQLO BASF Grameen Grameen Reebok Otto Grameen Trust Grameen Fiberglass Grameen Intel Grameen Yukiguni Maitake Grameen Felissimo ASA

Other countries which have also started operating social business are the followings Haiti Colombia Costa Rica United Kingdom Japan Albania India China and Germany

But, there is a question in the minds of many people that whether social business will sustain in the long run. As every business has its major objective to maximize profit will social business be able to gain popularity among its entrepreneur. In fact the social business in Bangladesh is doing well and they can be sustainable by the virtue of its business efficiency and performing the holy goal of serving the society.

Problem statement:
The financial crisis of the recent years in Europe and in many other parts of the world has made the poverty a major concern of the world. Again, Bangladesh is fighting with the problem of poverty since its birth. Social business can be an effective solution to the problem of poverty in Bangladesh and anywhere of the world. So the purpose of the researcher is To describe the practice of social business in Bangladesh and in other parts of the world and to evaluate their performance to discover whether these will sustain in the long run.

Objective of the study:


Broad Objective: The main objective of the study is to describe the practice of social business in Bangladesh and in other parts of the world and to evaluate their performance to discover whether these will sustain in the long run. Specific Objectives: The specific objectives of this report are as follows: To describe the concept of social business. To describe the practice of social business in Bangladesh. To describe the social business practice in other parts of world. To learn the various fields of Social business. To identify the current problems of social business in our country. To evaluate the performance of current social business companies those are running throughout the country. To answer the question whether social business companies will sustain in the long run.

Literature review:
Yunus, Mohammad and Weber, Karl,(2010), Building Social Business, 1st Edition, Public affairs.

. Younus, Mohammad,(2008),Creating a World Without Poverty: Social Business and the Future of Capitalism, Global Urban Development, Volume4.

Research methodology:
Types of Study
It will be a descriptive type of study.

Sources of Data
Data will be collected from both primary and secondary sources. Primary sources of data Face to face conversation with the officers and staffs of social business. Informal conversation with experts who understand the concept of social business.

Secondary sources of data Periodic report of social business firms. Different journals and articles. Different textbooks. News papers. Different websites.

Methods of Data Collection:


This is a descriptive study. As a result, data will be collected by studying and reviewing the statement, circular and manuals of the social business firms and different newspapers. The relevant data will be collected by informal discussion with the officials of Yunus Centre and with the officials of social business firms operating in our country to understand the present condition of social business in Bangladesh.

Data Analysis:
This study will find out the performance of the currently operated social businesses in Bangladesh. From these findings the evaluation of their activities will be made to answer whether these will sustain in the long run.

Reporting:
Before preparing and presenting final report, I will prepare the initial report and present to my supervisor. Every stage and progress of the report will be tested and evaluated by my supervisor of the report Nuzhat Nuery.

Limitation:
While preparing the report some problems and limitations has encountered which are as follows:-

Lack of expertness. This is the first time when I am conducting a Research on any business area.
So, previous experience was not high in making a project paper.

The main constraint of the study was insufficiency of information, which was required for the
study.

Most of the data are collected from secondary sources. Due to time limitation, many of the aspects are not discussed in the present report. Lack of opportunity to access to internal data. Experts opinions are limited due to most of the experts unwillingness to cooperate. I was unable to contact with higher authority of the different concerned organizations. Lack of interaction with the knowledgeable persons.

References:
Yunus, Mohammad and Weber, Karl, (2010), Building Social Business, 1st Edition, Public
affairs.

Yunus, Mohammad. Creating a World Without Poverty. 1st Edition, Public affairs. Website of Yunus Centre and Grameen Creative Lab. Yunus Centre. http://www.muhammadyunus.org/Social-Business/social-business/ http://www.muhammadyunus.org/Social-Business/social-business/

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