The Future of Social Business: A Discussion with Prof Muhammad Yunus
In a recent webinar, Prof Yunus discussed the failure of our current economic system, how we can build the world of three zeros, and some practical bits of advice for aspiring social entrepreneurs.
I had the privilege to co-host a webinar with one of my biggest inspirations, Professor Muhammad Yunus. He is a social entrepreneur who was awarded the Nobel Peace Prize in 2006 for his works in micro-finance through the Grameen Bank. He is the pioneer for the concept of social business, where the business focuses on social impact instead of profit. During the webinar, Prof Yunus shared his entrepreneurial journey, his vision towards a better world, and his pieces of advice for the young generation.
The broken system
Prof Yunus shared his journey on founding the Grameen Bank. He saw that there is something wrong with the design of the current economic system. The poor people were not served by the bank, and there are no economic theories that explain how to fight loan shark. He then started to lend money to poor people while being told off by the traditional banks that poor people are not “credit-worthy.” However, he saw things differently. He said
“The question was not whether the people are credit-worthy or not. The whole question is whether the banks are people-worthy or not.”
Prof Yunus emphasised that our current economic system is built upon the assumption that all individuals are self-interest driven. This was amplified during the pandemic situation. Instead of standing together to collectively fight the common enemy, what happens is the opposite. Nationalism grows stronger, and vaccine development becomes a capitalist race to profit-making.
“Capitalist system does not have a future.”
What has the current economic system leave us with? He argued that it has left us with global warming, extreme wealth inequality, and persistent unemployment.
The world of three zeros
Prof Yunus sees opportunity amid uncertainties. The pandemic has brought upon us a great opportunity that we need to leverage. It has put a temporary pause on the system that has slowly destroyed our planet, our community, and our existence. He asked the question, do we want to re-start the system and go back to that world?
“No going back. This is the greatest opportunity we will ever have.”
He believes that we have the capability to change the world. For a better one. In his word, the world of three zeros. They are:
- Zero carbon emission
- Zero wealth concentration
- Zero unemployment
Here, the role of social business becomes crucial. He argues that when we replace the self-interest/profit-driven business with common interest-driven business, we have created a world where people have choices. Not only to make money but also to create social impact.
“I don’t want to make money out of people’s lives”
Human beings are born entrepreneurs. Not job seekers.
When we encourage more people to be entrepreneurs, we reduce the problem of wealth concentration and unemployment. Prof Yunus also mentioned that universities should prepare young people to be life-ready, not merely producing job-ready young people.
He continued with a powerful message to the young generation who want to start a business — be prepared for failure. Every business has a high risk of failure, be it profit-making companies or social businesses. You should not expect to be successful at your first try. Some people succeeded in their second, third, or even fourth try. What important is we are not giving up.
“ Never expect that you’ll be successful. Get ready for your failure. And try again.”
The purpose of life
If our purpose of life is to make money, then be it. But money should not be a measure of happiness.
“Making money might be happiness. But making other people happy is super happiness.”
Prof Yunus encourage the young generation to recognise that they have the power to change the world. Our current young generation is the most powerful generation in human history because of technological advancement. It will be a waste if we don’t use that power to make this world a better place. We need to find ways to utilise this power and to not be afraid to create a positive impact in this world.
“Your job is to change the world. You create your own world.”
The one-hour I had talking to Prof Yunus was a really special occasion for me. He is such an inspiration, and I hope you agree. He started from nothing, built successful social businesses, and impacted millions of lives around the world. His books are phenomenal too. If you agree with some or most of his points, you will enjoy reading his books. I will recommend Banker to the Poor, Building Social Business, and the latest one, A World of Three Zeros.
You can watch the full recording of the webinar here or listen to the podcast episode below.
