Social business: Goal of emancipating the youth

With a staggering workforce of approximately 70 million, it is unarguably prudent to ascribe, in terms of traditional economic jargon, that one of Bangladesh's biggest and most potent 'factor endowments' is indeed the abundant supply of labour, a lion's share of which comprises a burgeoning youth populace.
Given the status quo of the booming manufacturing and flourishing tertiary sector in our country along with a steady growth of agricultural output, the capitalisation of human resource play an imperative role in uplifting the terms of trade, allowing the diversification of exports. However, reduction of unemployment still remains one of the key macro-economic aims, with policies and strategies being formulated and remoulded to tackle a high youth dependency ratio of 44.9 per cent, which may be imputed to a relatively stagnant and inelastic job market, thanks to the supply of labour exceeding the proportional demand. Investment on capital goods generates further niches for engagement of physical labour, thus facilitating the need for capacity building and training. The pursuance of  'youth empowerment' in many of the world's developing nations, including that of Sub-Saharan Africa and South East Asia,  recognised  this  particular segment of  a country's demography as a catalyst expediting growth of productive potential and well-being. It is this very goal of emancipating the youth that has paved the way for the advent of 'social business' or 'social entrepreneurship' in Bangladesh, a refreshing concept incorporating young and talented entrepreneurs.
Being the brainchild of the man behind the global micro-credit revolution, the principles of social business follows the footstep of collateral-free loan sanctions granted by Grameen Bank, invigorating creative and forward-looking business ideas, which simultaneously seek to contribute to the fundamental MDG goal of poverty alleviation. Advocating the motto 'Poverty anywhere is a threat to prosperity anywhere', the key element of social business focuses on the return of investor's original investment, without additional return, a tenet contradicting the stereotyped 'rational' and 'incentive-driven' individual, who is solely dedicated to profit maximisation.  Professor Yunus' views reflect that of the founder of classical school of economics, Adam Smith, who identified the bipolar dimensions of human being -- both the self-centred as well as the selfless. Industrialisation and capitalism, along with its 'market-centric' approaches tends to abandon the 'humane' side of enterprising, one that encompasses the needs of those at the very bottom of social hierarchy, namely the dispossessed and the disadvantaged. However Smith's ideologies, that glorifies the 'price mechanism' or 'invisible hand' as the best possible way of allocating society's resources can be termed as slightly skewed, with a proclivity towards 'top-down' and 'trickle down' approaches rather than sustainable solutions. The successful model of micro-finance, therefore, has re-defined the way people's needs are addressed and has piqued the interests of economists worldwide, in reassessing the savings and consumption pattern of the poor.
The 'social business' and 'corporate social responsibility' are the two most important tools contributing to ensuring a more tolerable and less concentrated distribution of economic opportunities. Citizens can donate to social causes by investing in firms which actively participate in and undertake Corporate Social Responsibility (CSR) activities. Despite having core divergences in their respective definitions, where CSR includes programmes with an altruistic aim undertaken by a profit-maximising company, social business on the other hand is dedicated to maximising social as well as communal well-being.  A common way of practising CSR is by donating money for social causes, which may be achieved by directly collaborating with a social business, making the impact of financial aid more efficacious. Grameen and Danone, one of the world's biggest conglomerates went into a joint venture to create a yogurt fortified with micro-nutrients, catering to the malnourished or under-privileged children.
SBYA or Social Business Youth Alliance is a Bangladesh-based global platform, which seeks to disseminate the principles and ideals of social business around the world, by connecting young and passionate social entrepreneurs. The association aims to inspire the youth to initiate their very own 'social revolution' by offering a holistic programme, which includes training sessions, seminars, lectures and symposiums by successful role models, to embolden the youth's initiatives to start-up a social business. SBYA Global was founded in Yunus Centre, the global hub of Social Business, with the view to bringing the generation of youth into Social Business. Mentored by the "Yunus Centre", SBYA Global continues to make commendable progress in engaging the youth in social business, by forming a global network of youth representatives,
Bangladesh is one of the most celebrated benchmarks for social business models and home to thriving NGOs like Grameen Bank and BRAC which are channelling their expertise and skills to developing countries seeking to replicate the aforementioned models. Relevant and concerned policy makers must attempt to remove certain barriers to social entrepreneurship, ensuring that the benefits of socially and economically sustainable growth are being enjoyed by the marginalised. Micro-credit organisations like Grameen or BRAC, which endorse social entrepreneurship, must diversify their offerings to micro-insurance or micro-savings, so that people in the rural areas can have access to other financial services as well. Lack of qualifications possessed by the social entrepreneurs can sometimes be the impediment when it comes to acquiring loans and aids. This is highly relevant for social or conventional entrepreneurs who do not have easy access to information or guidelines, either because of their social position or peripheral presence. The substantial gap between multinational companies and local entrepreneurs is an issue that needs to be addressed if the benefits of foreign direct investment (FDI) are to be realised. Many social businesses are lagging behind in terms of technical knowledge to implement sustainable or environment-friendly operations, because most entrepreneurs specialise in public policy or economics and are more likely to share similar grounds with think tanks. Lastly, despite the fact that Bangladeshi expatriates or non-residents living abroad, are willing to implicitly contribute to economic development of the country are discouraged from doing so,  due to foreign exchange controls by the central bank or money transferring issues.
Retrospectively, the evolution of Social Business opportunities in Bangladesh still has a long way to go, if it is to play an influential role in changing lives. Government grants as well as intervention by international multilateral organisations can possibly boost the activities of social businesses. However, social entrepreneurs choosing to expand their operations may have to compromise in the 'non-profit' criterion, in the long run. But nevertheless, we may conclude that social business is indeed a promising dimension for Bangladeshi youth, with the potential to be known as the next big thing.
The writer is a 2nd year student of Bachelor of Social Sciences (BSS) at the University of Dhaka.
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