How Social Business Changed My Life – And Why It's the Future of Capitalism

The first time I truly understood social business; I was holding a cup of yogurt in rural Bangladesh.

It wasn't just any yogurt. This was Grameen Danone's Shakti Doi, a nutrient-fortified snack designed to combat malnutrition in poor communities. At just 10 cents per cup, it was affordable for even the poorest families.

As I watched a mother carefully feed it to her underweight toddler, she told me: "This is why my son hasn't been sick this year."

My preconceived notions about business were shaken in that instant. Here was a for-profit company making real money while saving children's lives. Zero charity. No contributions. Just smart, sustainable business with a social mission baked into its DNA.

From Skeptic to Believer: My Social Business Journey

Like most business school graduates, I used to believe in one fundamental rule: Companies exist to maximize shareholder value. Period.

Then, I traveled through developing nations for a year and witnessed firsthand how traditional capitalism frequently fails the poorest people in the world. I saw:

• Factories paying starvation wages
• Farmers trapped in cycles of debt
• Communities poisoned by corporate pollution

But I also discovered something revolutionary – businesses that healed instead of harmed.

The Rickshaw Driver Who Lit Up a Village

In Dhaka, I met Rahim, a rickshaw driver who had become a solar entrepreneur. With a $100 loan from Grameen Bank (the pioneer of microfinance), he started selling solar lamps in his village.

Within 18 months:

• 200 households had clean lighting
• Children could study after dark
• Families saved money on dangerous kerosene

Most impressively? This did not show charity. Rahim paid back his loan with interest, and the bank used the money to assist other business owners. The system was self-sustaining.

What Exactly is Social Business?

Social businesses come in many forms, but they all share two core principles:

1. Primary goal is solving social problems (not maximizing profits)
2. Financially self-sustaining (not dependent on donations)

Three Game-Changing Models

1. The Problem-Solver

Companies like Sanergy in Kenya that build hygienic toilets and convert waste into organic fertilizer – addressing sanitation and agriculture simultaneously.

2. The Community-Owned Enterprise

Initiatives like Rangsutra in India, in which artisans own shares in a business that sells their crafts worldwide.

3. The Buy-One-Give-One

Pioneered by TOMS Shoes, this model has now been adapted for everything from eyeglasses (Warby Parker) to menstrual products (The Period Company).

Why Social Business Outperforms Traditional Charity

After volunteering with numerous nonprofits, I noticed three critical limitations of charity:

1. Dependency Cycle – Communities become reliant on outside aid
2. Limited Scale – Donations rarely meet actual need
3. Unsustainable – Programs collapse when funding dries up

Social businesses solve these problems by:

• Creating permanent local jobs
• Reinvesting profits to expand impact
• Building systems rather than handing out goods

The Harsh Realities No One Talks About

During my deep dive into social enterprises, I discovered some uncomfortable truths:

1. The Profit vs. Purpose Tension is Real

The founder of a fair-trade fashion brand confessed: "Every quarter, I have to choose between paying living wages and staying competitive."

2. Impact is Hard to Measure

Unlike profit margins, social change doesn't fit neatly on spreadsheets. How do you quantify "lives improved"?

3. Greenwashing is Everywhere

While continuing to engage in exploitative practices, some businesses write "social responsibility" on marketing materials.

How You Can Be Part of the Movement

I've learned the best ways to support social businesses through years of research and personal experience:

1. The 10% Shift

Set a goal of allocating 10% of your expenditures to social enterprises. My favorite switches are:

• Banking: Aspiration instead of Chase
• Coffee: Rebelbean instead of Starbucks
• Socks: Bombas instead of Hanes

2. Invest With Impact

Platforms like:

• Kiva (microloans starting at $25)
• Calvert Impact Capital (community investments)
• Local credit unions that reinvest in your area

3. Demand Corporate Accountability

When companies claim to be "socially responsible," ask:

• What percentage of your supply chain pays living wages?
• How do you measure environmental impact?
• Who exactly benefits from your "giving back" programs?

The Future is Already Here

A plastic-recycling social enterprise in Indonesia that:

✔ Employs former waste pickers at fair wages

✔ Has removed 200+ tons of ocean plastic

✔ Turns a profit selling recycled materials to major brands

This isn't some utopian fantasy – it's business working as it should.

Final Thought: We Vote With Every Dollar

That Bangladeshi mother didn't need my pity or donations. She required market-based solutions that addressed real issues while respecting her dignity.

Social business proves that profit and purpose aren't opposites – they're partners. And in a world facing climate change, inequality, and pandemics, this might be our most powerful tool for creating lasting change.

Your turn: Have you encountered any inspiring social businesses? I'm always looking for new ones to support – share your favorites below!