Research: Designing a Social Business that Benefits the Core

Research: Designing a Social Business that Benefits the Core

July 4, 2017

This post was originally published at bcg.perspectives. By Douglas Beal, Florian Dahl, Sophie Eisenmann, Daniel Nowack, and Frauke Uekermann

A growing number of companies around the world have launched social-business subsidiaries as part of an agenda to bring about positive change. Such businesses are designed to solve a social problem, such as unemployment, malnutrition, or hunger. Unlike a charity, a social business aims to be financially self-sustaining; profits are reinvested to advance its social mission. It is notable and encouraging that large corporations, in particular, are joining this movement, given their deep expertise and ability to scale up initiatives rapidly.

Since 2012, BCG has been partnering with microfinance and microcredit pioneer Muhammad Yunus—a recipient of the Nobel Peace Prize and the founder of Grameen Bank and Yunus Social Business—to advance social-business initiatives. In the course of this collaboration, we have discovered that a social business does not just have a positive impact on the community it is designed to serve. It also delivers tangible benefits to the parent company. (See The Power of Social Business, BCG report, November 2013.) While some of these benefits are to be expected (such as positive brand perception and strong employee engagement), others are perhaps more surprising. We have also learned that companies do not automatically achieve these benefits when they launch a social business. They must be earned through careful upfront planning and thoughtful execution.

Interview with our CEO Saskia Bruysten in Frankfurter Allgemeine Zeitung

Do you want to know more about our CEO and Co-founder, Saskia Bruysten? She was recently interviewed on Social Business and her personal success story by the German newspaper Frankfurter Allgemeine Zeitung.

Thinking Ahead: Securitization Structure Helps to Democratise Technical and Medical Education in Bra

Our Brazilian team launched a partnership that doesn’t only look at short-term needs but prepares Brazil for an uncertain future. The partnership between Yunus Social Business, Provi, Augme Capital and VERT will help to promote skilled labour - including medicine courses - and finance students from all backgrounds to become the skilled workforce of tomorrow.

Investment Readiness Programme in Colombia with The Boston Consulting Group

Since 2016, our team in Colombia has been running an accelerator programme in collaboration with The Boston Consulting Group (BCG). The goal of the programme is to build the ecosystem around social business in Colombia and help those with a high potential to become ‘investment ready’.

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