Recently many nonprofit organizations and other organizations that are involves ed in helping improve the natural environment, have been approaching nontraditional plans how to run their business. They are starting to create some of their own revenues and use for-profit business techniques to progress towards their goal as an organization. An example of this would be Neil Keny-Guyer of Mercy Corps. Keny-Guyer turned his relief organization into a global powerhouse with 3,500 employees and a $300,000 budget. He did this by going the capitalist route and purchasing a bank in Indonesia. They call these people “social entrepreneurs”. Another social entrepreneur is Vikram Akula wanted to prove that you can make a decent profit while serving and helping the poor, and not making them a charity case. He is the CEO of SKS Microfinance, which has around 9,500 employees and 3.3 million customers in India and adding roughly 300,000 new clients a month. They don’t turn down poor people when they come to SKS for loans. They feel that believes that it is a win win situation for everyone when people take out loans and uses them for a good reason, for example to start a small store and make a small store bigger. Last year SKS had revenues of $48 million, and a net profit of $6.16 million. This shows that having a for-profit business model helps everyone out in the long run.
What are other companies that should use this business model to help out the society?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment