[Guy Dumas] Nimihito Pinesiw presents his views on social business in Native country, also known as Indigenous country. The concept of social business is very familiar in the Indigenous context because it is something Indigenous communities have practiced prior to European visitors arriving and restarted in a different flavor in the early 50's, when the INAC social assistance department split into an economic development department.
Social business in Native communities DOES exist! It's just that elected representatives and perhaps the Directors of the economic development corporations have been led to believe that you have to make a profit at the end of the day and if you don't you've failed. What an injustice to the hard working people and businesses doing what they do best!
While the primary purpose is to serve society, a social business has products, services, customers, markets, expenses, and revenues like a "regular" enterprise ...it is a non-loss, non-dividend, self - sustaining company that repays its owners' investments.
Indigenous Hemp operates as a Social Business. Social business was defined by Nobel Peace Prize laureate Professor Muhammad Yunus and is described in his books; Creating a World without Poverty—Social Business and the future of capitalism and Building Social Business—The new kind of capitalism that serves humanity's most pressing needs.
The Social Business concept
Unlike traditional business, a social business operates for the benefit of addressing social needs that enable societies to function more efficiently. Social business provides a necessary framework for tackling social issues by combining business know-how with the desire to improve quality of life. Prof. Yunus has already shown the effectiveness of this new type of business: his clear focus on eradicating extreme poverty combined with his condition of economic sustainability has created numerous models with incredible growth potential. The framework of a social business is based on 7 principles, and Indigenous Hemp has added one other principle related to Indigenous values and practices. With the idea of social business, Prof. Yunus has introduced a new dimension for capitalism: a business model that does not strive to maximize profits but rather to serve humanity’s most pressing needs.
Background of the social business model
Within our economic system, there are currently two main types of organization models. The private sector where companies sell products or services to make money, and non-profit organizations financed by the government like healthcare and education. Where both governments and the markets reach their limits, charities may fill the gap. Nowadays, we have forgotten to involve the poor into economics. And exactly that target group is full of potential but has never had a real opportunity.
Indigenous Original Soil
1. Business objective will be to build economic sustainability; not profit maximization.
2. Financial and commercial sustainability.
3. Investors get back their investment amount only. No dividend is given beyond investment money.
4. When investment amount is paid back, company profit stays with the company for expansion and improvement.
5. Gender sensitive and environmentally conscious.
6. Workforce gets market wage with better working conditions.
7. Do it with joy.
8. Apply Indigenous teachings
SOCIAL BUSINESS PRINCIPLES