Social Business: A groundbreaking tools for reducing Unemployment

Rakib Hossain :: Among thousands of burning problems, Unemployment is most devastating one. Government sector and private sectors a very few work opportunity compared with population growth in Bangladesh. Each year a large number of youth joint with existing unemployed youth. Bangladesh has a population of over 16cr of which 10.5cr fall between 15-64 year age bracket.

This is going to increase to 13cr by 2030 (UNDP, April). Every year 20 lakh people join the labor force but only some 6 lac jobs were available in the last 2 years. Nearly 74% of the jobless people are young. Of the 16cr people of the country 10.5cr are between 15-64 year age bracket & this age group people is likely to become 13cr by 2030 (UNDP, April).

The unemployment situation poses a precarious picture & largely explains the frustration & restlessness in the society. Self-employment and creating employment opportunity for the youth is a great challenge. Social business can mitigate the problem slightly. By investing in a social business venture or company create more employment opportunity.

The objective of the venture or business is purely to achieve one or more social objective through operation of the venture more specifically reduction of poverty and creating employment opportunity but traditionally In capitalist economy, profit maximizing of shareholder is the mail goal of business operation

With the goal of achieving social welfare introduced another kind of business that recognize the multidimensional nature of human being.  The business is social business, According to Muhammad Yunus A social business is designed and operated as  a business enterprise, with product, services, customer, markets , expenses, and revenue. It is a no loss, no dividend, self-sustaining company that sells goods or services and payback investments to its owner but whose primary purpose is to serve society and improve the lot of the poor. The investors/owners can recoup the money invested but cannot take any dividend beyond that point.

Exclusive profit maximizing motives of capitalistic economy has been largely responsible for creating poverty. Poverty reduces with the augmentation in employment. To address the issue apparently introduced corporate social responsibility (CSR) in traditional capitalism business in order to enable it to protect the interest of the poor people. Even a business company which adopts CSR approach does not pay enough attention to CSR related activities because its prime goals is to maximize profits for its shareholders. As a results, the impact of CSR on poverty alleviation proven insignificants. Since The poverty is the most important case among several cause of increasing unemployment.

The alleviate poverty by creating new employment opportunity introduced another kind of business called social business. Entrepreneurs will set up social businesses not to achieve a limited personal gain but to pursue specific goals. Employment greatly depends on investment. Investment is the most vital factor for economic growth and development. Employment creates earning capacity and ensures workers entitlement on goods and services. According to the development thinkers it may work as a revolutionary tools in creating employment opportunity for youth through more and more investment in social business.

Author : Rakib Hossain; Monitoring and Evaluation officer, Help the needy charitable trust Bangladesh.