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Yunus asks corporates to embrace small credit

Special Correspondent

Social business initiative should not be misunderstood as philanthropy

Prof. Muhammad Yunus

NEW DELHI: Corporate houses should take up social business initiatives that aim at serving the poor through a non-loss, non-dividend business, Nobel laureate Muhammad Yunus, the chief architect of the Grameen Bank of Bangladesh, said here on Tuesday.

This model should not be misunderstood as philanthropy.

While mooting the idea of a `social stock market' to list companies that are engaged in businesses in the social sector, he said such a market would allow people to pick and invest in firms involved in the social development field.

Mr. Yunus, who won the 2006 Nobel Peace Prize for his pioneering work in the field of micro finance, said India could replicate the micro-finance model of Bangladesh. "It can work for India, as it involved people who are the same everywhere. If you are serious it would happen.''

According to him, what is critical is a legal framework and regulatory body that will ensure smooth running of the sector, as micro-finance in India is still at a nascent stage. Pointing out that there are 16 million beneficiaries of micro-finance in Bangladesh, which is one-tenth the size of India in terms of population, he said India, therefore, should have at least 160 million beneficiaries.

While focusing on the need to spread the reach of micro-finance and social business in every walk of life, the Nobel laureate said it should form part of the curricula of business schools with the option of specialisation in the discipline.

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