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Social Entrepreneurs

What is a Social Entrepreneur?

A Social Entrepreneur is someone who uses the profits made from entrepreneurial ventures to teach entrepreneurship to the less fortunate so that they can partake in their own socio-economic improvement.   

The cynical amongst us may say that it is nothing more than the usual ‘charitable’ giving with a great tax write-off while appeasing the conscience. Yes and yes and maybe but herein lies the difference.

Non-profit charities are notorious for using sometimes as much as 80% of the monies donated in goodwill, in administration costs to distribute the remaining 20%. Many charities are also not known for administering solid ‘fix-from-the-root’ solutions. Many engage in bandage solutions. Also charities often gives without necessarily teaching self-sufficiency.

The singular purpose of social entrepreneurship is to provide the means so that the less fortunate becomes self sufficient. If we were to paraphrase one of Confucius’ saying, it will define the difference between ‘charities’ and ‘social –entrepreneurship’ something like this:

Charities give a man a fish and he eats for a day, social-entrepreneurship teaches a man how to fish and eats for a life-time.  

Perhaps one of the best illustrations of social entrepreneurship is  the Grameen Bank.

In the 2006, Social entrepreneur and economist Dr.Muhammad Yunas, won the Nobel Peace Prize.  The road to this prize began in 1974 when Dr Yunas 'invented' the micro-loaning system in his native Bangladesh. He called it the Grameen Bank.

Unlike regular banks the Grameen Bank believed that small collateral-free loans could effect change. And it has. In the 33 years that the bank has been around it has loaned billions of dollars to over 2.7 million families in 22 countries from Africa and Asia to South and Latin America.

90% of recipients of the loans, which are as low as $100.(USD) are women. Loans are supported with financial services which teach borrowers the basic financial and business principles that helps to grow a business.

Monies repaid are used to further help other borrowers.

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