For social business, think up a great idea, funds will come along: Prof Muhammad Yunus

Budding entrepreneurs should not worry about funds to set up a social business as good ideas can attract investors, analysts said yesterday.

The funds set aside for the companies’ corporate social responsibility (CSR) can be an important source of funds for social business, said Saskia Bruysten, chief executive of Yunus Social Business in Germany.

“Social business is not something for which you will have to give up everything,” Bruysten said. “It is a business where owners and investors do not extract money, but the owners can take money as salaries,” she said.

Bruysten spoke at a discussion on “financing and legal aspects of social business” as part of Social Business Day celebrations at Gonoshasthaya Kendra in Savar.

Bangladesh is the founding place for microcredit and social business — two great ideas that inspire people, she said.

Bruysten said social business could be set up within the country’s existing legal framework. “There is no need for any new law.”

She also said even a small contribution from a traditional business can help set up a social business.

Yesterday’s social business event pulled in about 700 local and 125 foreign participants from Italy, Germany, France, the USA, the UK, Japan, Bahrain, Turkey, Malaysia, Haiti, Colombia, India, Canada, Luxembourg, Albania and Monaco.

It will not be tough to manage funds if there is a good idea, said Rokia Afzal Rahman, president of Bangladesh Federation of Women Entrepreneurs.

Many companies have funds for their corporate social activities, and budding entrepreneurs can go to the big companies and seek funds set aside for their corporate social activities, she said.

“It will bring double benefit for the companies, as they will be able to spend their CSR fund and somebody will do the work on behalf of the company,” said the former caretaker government adviser.

She said young people are the future of the country and the world, and they often have great ideas. “There are many people in the world who have funds but do not have ideas.”

“Entrepreneurs should go to them with their social business ideas and they will see that a lot of people have come forward,” said Rokia Rahman.

Asif Nazrul, a professor of law at the University of Dhaka, said like any other business the social business ventures need legal protection.

He said doing something for the social objectives is legal. Ashraful Hassan, managing director of Grameen Fabrics and Fashions, said banks as well as non-government organisations could be a good source of fund.

He said a traditional business can also be turned into a social business after it makes enough money to remain sustainable over a long period.

Shkelzen Marcu, country director of Yunus Social Business Albania, said there is no legal problem is running a social business within a commercial venture. Christophe Person, social business expert at Grameen Credit Agricole Microfinance Foundation, said: “Our goal is to give more visibility to the concept of social business and help solve social problems.”

Barrister Tanim Hussain Shawon, a lawyer of the Supreme Court, said there is no need for any other new laws to regulate social business. “Social business can be set up within the existing legal framework of the country.”

He, however, called for an enabling environment for social business to prosper. There is also a need for de-regulation, he added. Social business should be given tax benefits to attract more people to invest, as they are serving the society, said the lawyer.

From the audience, a student from the University of Texas in Austin, said: “We don’t have experience and connections. How can we get funds?”

In response, Bruysten said: “Many universities in the world have set up funds for the start-ups. These funds can be helpful.” “There are also many development agencies who are spending money around the world. They will be happy if they see that their funds are being used efficiently.”

Source: The Daily Star