Social Business

At the moment I am in the middle of reading Creating a World Without Poverty: Social Business and the Future of Capitalism by Muhammad Yunus (the man that is known for starting micro-lending banks). I wish so much that I had started reading it earlier!! The man is a genius! He writes that while many non-profits, NGOs and foundations do good work in our society, the fact that they can only survive through donations can make them unstable and unsustainable. Also, leaders of these types of services end up dedicating a great chunk of time to finding and raising this money—time that could be spent in the pursuit of the project’s true goal of serving society. Instead, we should be looking at creating programs and projects that are self-sustaining (aka. over time they can support themselves). 

For Yunus, the answer to the world’s humanitarian issues is to combine this idea of bettering society with the self-sustaining idea of business. This can be done in a few different ways. One way would be to start a business that deals with a social need but does not see profit as its main objective. While some profit is necessary to allow for expansion and betterment of services, this idea of making as much money as you can to please your personal bank account and your stock holders is not at the first concern. He gives the example of a social business that,

“manufactures and sells high-quality nutritious food products at very low prices to a targeted market of the poor and underfed children. These products can be cheaper because they do not compete in the luxury market and therefore don’t require costly packaging or advertising, and because the company that sells them is not compelled to maximize its profit.”

Another type of social business is to set up what we would consider a normal “profit-maximizing” business, but this business is staffed and eventually owned by the poor or oppressed people of society. This type will allow the poor to take matters directly into their own hands, giving them the opportunity to use their own skills and knowledge to work their way out of poverty.

I have been thinking a lot about this idea of social business lately, and it very much intrigues me. I have even been trying to apply the idea to my work here in Nicaragua. While the micro-lending bank in which I work has proven to be (although not perfect), a great example of social business put into practice, the rest of project of Proyecto Generando Vida does not seem as stable. Our director spends a lot of time finding donors each year to cover the costs that the many other programs we offer consume. Therefore, I have been asking myself, ‘what could we do to make our project more sustainable?’ I actually thought of a few ideas, but with my lack of business background, I don’t yet trust that they could actually work.

 But the fact that I am so fascinated and inspired by this concept of social business is making me think about whether or not I would possibly like to try something in this area in the future…? Does anyone know of a social business school? Haha

-Jana

P.S. I would like to give a special thanks to my Dad who gave me that book to read, along with the “Case for Social Enterprise” packet that he just sent me in the mail. If you read this, Dad, I would love to talk to you more about how you have been trying to incorporate this idea more into ACH!

Simplicity

I recently read the ‘Send Me to Serve’ fundraising page of one of the new JVs that will be coming in December, and one thing she wrote significantly struck me. She wrote that the vow to simple living that we take during these two years is NOT a vow to poverty. Simple living is a choice to love the Earth. It is a choice to rid our lives of unnecessary things. It is a choice to move towards a greater happiness. Poverty on the other hand is many times not a choice. It is the oppressive and painful force that many of the women in my banks struggle with daily.

I may live more simply here, but I definitely do not live in poverty.  I have regular meals, my rent/light/water/phone bills are easily paid each month, I have good health insurance, and on top of this, JVC gives me a stipend--I have everything I need and a little extra.  And I am so, so happy.

 I think this is why it always seemed weird to me when people would say things like, “Oh poor you!” when I tell them about some of the aspects of our simple lifestyles here:

No car
No washing machine/dryer
No dish washer
No cell phone
No internet
No TV
No hot water heater
No air condition
Less variety of diet
& Less space for privacy

Yes, sometimes these can be agitating, but in many ways I feel that my life here has allowed me to find a new kind of liberation. I feel more in touch with myself and with those around me. I appreciate things/moments more. I feel closer to the Earth.

I realize many of the items on the list above are products of technology, but I don’t want you to think that I’m saying all technology is inherently bad. Hell, I’m using technology right now to communicate all of this to you! In moderation, things like cell phones and internet can be very useful and lead to many good things. For example, I heard that when the computer was first becoming widely distributed in the U.S., people thought it would revolutionize the work place—everyone could get their work done in half the time and therefore only work half as much! Unfortunately, that doesn’t seem to be how things turned out. I think many of us have attached ourselves to machines and the latest technology thinking that it will make our lives easier and better, but many times we become more stressed and less happy. The United States may be one of the most efficient and well-connected places in the world due to technology, but what does this matter if we cannot be truly loving and present to ourselves, the person sitting next to us, the Earth, and God? For me, simple living seems to be a giant step in the right direction towards all of those. 

Pues, with all that being said…..While I have learned a lot in my 8 months here, I recognize that I am still not the biggest expert on simple living. If any of you have thoughts/experiences to share or differing points of view, I would love to hear them.

Thanks for reading. : )

-Jana