NEWSLETTER
ISSUE NO: 05 I NOVEMBER 2014
K A L E I D O S C O P E Social Business
Insights
SOCIAL BUSINESS DAY HIGHLIGHTS
5th SOCIAL BUSINESS DAY CELEBRATED
Inside Social Business Highlights • 5th Social Business Day Celebrated 01 • Phare Social Business Circus
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• Plenary sessions and panel discussions
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• Social Business Day-Market Place 05 • Grameen Telecom Trust to fund three Social Business projects
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• Concluding Session
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GTT Social Business In Progress • Nobin Udyokta Brief
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• Social Business Programme Updates
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• Grameen Telecom Trust Brief
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“We are not Job Seekers, We are Job Givers Turning Unemployment into Entrepreneurship”
Professor Muhammad Yunus at the inauguration of the 5th Social Business Day-2014
On June 28th 2014, over 1000 delegates including 275 international participants from over 31 different countries gathered in the Radisson Blu Water Garden Hotel in Dhaka to celebrate and discover new ways to eradicate social problems on the occasion of Social Business Day. This year at the 5th Social Business Day with the theme “We are not Job Seekers, We are Job Givers- Turning Unemployment into Entrepreneurship”, Nobel Laureate Professor Muhammad Yunus, pledged to create a world where the word unemployment would be obsolete. Nobel Laureate Professor Muhammad Yunus hosted the event and Ms. Kerry Kennedy, President of the Robert F. Kennedy Center for Justice and Human Rights joined as Keynote Speaker. Other eminent dignitaries from around the world included CEO of Grameen America Ms. Andrea Jung, Honorable Ambassadors to Bangladesh of various countries such as USA, Australia, Republic of Korea and Egypt amongst others, spoke on the occasion. Delegations comprising of 46 members from China, 43 members of Danone Communities from France, 15 members led by Grameen Credit Agricole, 30 member delegation from Taiwan, high-level representatives from NABARD, Tata Steel, Bajaj group from India, among many others also attended the event. All attendees shared their Continued on page 2...
views on the difficulties facing youth unemployment while agreeing that it is one of the greatest challenges even for the most developed nations. All these delegates gained valuable knowledge and insight by engaging in discussions, observing examples and opportunities to utilize the remarkable idea of social business and the ways it may be implemented in their countries. Delegates from the host nation also learned about the activities Grameen has been involved with in the past decades addressing different social and economic challenges. The Nobel Laureate lauded that “This year’s event has particularly targeted the unemployment issue as everybody is frustrated by the economic behavior as it teaches us to chase money for life and forces us to act like robots. These are toxic elements within businesses”. He also added that unemployment is a torture for the youth who want to work. He blamed the education system stating that the wrong system is creating an inhibited labor force; “We have made almost a culture of education that teaches the students to focus on a job with the best company. It is a shame for the human being to be limited like that.” To create a solution for this ailment, a new type of social business has been introduced known as the “Nobin Udyokta” or New Entrepreneur program which teaches the jobless to become job givers as opposed to job seekers through engaging in entrepreneurial activities. Every year, approximately two million new graduates enter the workforce under the official statistics and majority of them fail to secure a job or a sustainable source of income. Professor Yunus added that this project would make Bangladesh an example for the world to follow, as it will prove how the youth can be
empowered to enhance the economic activity of the country as well as creating job opportunities for others to enjoy. Furthermore, on this day other social businesses that are addressing social and societal issues around the world from countries such as Uganda and Haiti were also showcased to promote how this type of business can create a better world.
Keynote Speaker Ms. Kerry Kennedy addressing the audience
The Keynote Speaker, Human Rights activist Kerry Kennedy, said that “while Paris has the Eiffel Tower, New York has the statue of Liberty, and Cairo has the Pyramids, Bangladesh boasts not bricks but a man a man admired by every country on earth, a man who has become synonymous with all that is admirable about Bangladesh, Dr. Muhammad Yunus.” Ms. Kennedy also added that “the idea behind social business is we are not in it for ourselves, but for our communities. Stopping poverty, assuring universal quality education, protecting and promoting healthcare, empowering women, stopping violations of human rights, that is social businesses.”
PHARE SOCIAL BUSINESS CIRCUS Highlight of the day was a special circus performance by Phare Social Business Circus from Cambodia which trains street children to become modern circus artists. They entertained the audience with an amazing performance. All the artists in Phare learn their skills through Phare Ponleu Spelak (PPS), a non-profit organization. The organization focuses on teaching underprivileged and street children of Cambodia. Their organization teaches up to high school and after the children graduate, they become skilled performers in various art sectors. As they don't take money from the children, the institution is run through donations and social funding. They have recently collaborated with Grameen Credit-Agricole Foundation with their social business.
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Performance of Phare Social Business Circus from Cambodia
PLENARY SESSIONS AND PANEL DISCUSSIONS
View of the Opening Plenary Session
At the opening plenary ceremony, the Australian High Commissioner to Bangladesh, Greg Wilcock declared to use a part of his official development assistance fund to promote the private sector as he commented “We will also support innovation and new ideas, and what better idea than that of social business?” The Ambassador to South Korea Lee Yun-Young added, “Social business day is not just an event for sharing information. It is a social movement, uniting people around the world”. As a passionate supporter of Professor Yunus and Social Business, the US ambassador Dan Mozena showed his support and appreciation to this concept by commenting “I love the philosophy of Grameen Bank. I have visited centers of Grameen Bank in many villages. I have visited Grameen America. Everywhere I go I see the magic of Grameen”. It has taught people how to use resources and improve their livelihood, and the magic of social business will propel Yunus to greater heights”. Emmanuel Faber, Vice-Chairman of Danone (France) added that the government of France is working to make social business a part of their official development efforts. He added, “there have been many investors, economists, researchers, academics and students from all over the world who have also shown their deep appreciation and commitment to further expand social business initiatives”. There were six concurrent panel sessions in the breakaway discussion. This included "Academic
World: What’s coming up next,” “Fighting Unemployment with Social Business: Nobin Udyokta Initiatives of Grameen Companies”, “Innovative Financing for Social Business: Example of Crowd Funding, Loan Guarantees and Others”, “Social Business Pedia”, “Introducing Some Interesting Social Business around the World” and “Social Business in Marketing”. Managing Director of Grameen Telecom Trust Ms. Parveen Mahmud was part of the second panel discussion “Fighting Unemployment with Social Business: Nobin Udyokta (New Entrepreneurs) initiatives of Grameen Companies”. Professor H I Latifee (Managing Director of Grameen Trust) was the moderator of the group. In the discussion Ms. Parveen Mahmud briefed the audience on Nobin Udyokta and the role of Grameen Telecom Trust in turning the Job-Seekers to Job Givers. She said that “although it is a conventional business for the New Entrepreneurs however it is social business for the Grameen companies”. The other speakers in this panel were Ms. Saleha Begum, Managing Director, Grameen Byabosa Bikash, Ms. Nazneen Sultana, Managing Director, Grameen Communications, Mr. Imamus Sultan, Managing Director, Grameen Kalyan, Ms. Tahmina Akhter Parveen, Nobin Udyokta (New Entrepreneur), “Parveen Dairy Farm,” Mr. Jalal Uddin, Nobin Udyokta (New Entrepreneur), “Jalal Handmade Continued on page 4...
ISSUE NO: 05, NOVEMBER 2014
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View of Panel Discussion
Bags.” Many audiences participated in the panel discussion to have a clearer idea of the Nobin Udyokta model.
of Grameen Bank education loans. He started his business “Jalal Handmade Bags” while studying for his honors. At the panel discussion Jalal mentioned that once when visiting his mates in a village he came across a few women making ladies handbag. He got really excited with the concept and in the year 2008,
During the panel discussion, Nobin Udyokta (New Entrepreneur), Tahmina Akhter Parvin disclosed how she and her mother improved financially and repaid the loan to Grameen bank. She mentioned that through her mother’s encouragement she completed her honors degree and started cow rearing. Parvin mentioned that GTT not only supported her with the investment but also advised her how to run the business successfully and keep track of the financial matters. She is positive that even after paying back the investment amount to GTT, she would be able to make good profit. She mentioned that GTT had long term repayment option and no other organization would provide her such easy View of the Closing Plenary Session investment program. In future Tahmina Parvin dreams of being owner of a big dairy farm. Grameen Telecom Trust with small amount of money he started his own through its Nobin Udyokta Program stands by her to business. Hardworking & highly skilled, Jalal now a make her a successful entrepreneur. Nobin Udyokta under Grameen Trust has appointed several women for producing bags. His bags are The other NU present at the panel discussion was available in some of the biggest malls in Dhaka city Mohammad Jalal Uddin. He was born in 1985 in a like Bashundhara City, Pink City, Eastern plaza & small village at Narsingdi. Jalal is one of the borrowers Continued on page 5...
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others. He dreams to establish “Jalal’s handmade bag” as a superior quality brand in Bangladesh. The closing plenary session moderated by Professor Yunus discussed the future goals and the next steps for social business. The speakers participating in the closing panel were Mr. Hans Reitz, Co-Founder, The Grameen Creative Lab, Germany, Ms. Chuan-Min Wang (Juno), Founder, Foundation for Yunus Social Business, Taiwan, Ms. Lamiya Morshed, Executive Director, Yunus Centre, Bangladesh, Mr. Masaharu Okada, Executive Director, Grameen Creative Lab at Kyushu University & Professor, Kyushu University, Japan, Mr. Jimmy CHIU, Chief Executive, Stewards Ltd, Hong Kong and Ms. Parveen Mahmud, Managing Director, Grameen Telecom Trust, Bangladesh. Mr. Reitz said that they are now focusing on promoting social business in Germany, and so far have got a good response where Ms. Wang (Juno) added popularity of social business was growing in
Taiwan, as the country faces unemployment and low wages. Ms. Lamiya Morshed mentioned that social business has so far got a good response in Bangladesh as many academicians and students are showing interest in the concept. Masaharu Okada, said the concept of social business is widely familiar in Japan as “it is the DNA in Japanese business.” Ms. Parveen Mahmud said an important aspect of social business throughout the world would be the reporting and accountability framework. She also added much of the work has to be done on the field by ensuring proper operation management and good governance. She complemented Professor Yunus’s concern over the success of NU program by stating that, field officers and staff have to be trained and equipped accordingly to ensure that the new entrepreneurs are succeeding in their businesses. As an example she pointed out the modalities and functionalities of GTT’s existing field operations.
SOCIAL BUSINESS DAY- MARKET PLACE There was a Social Business marketplace showcasing social businesses from around the world. Many organizations took part in displaying their activities, products, services and solutions in the marketplace. Grameen Telecom Trust (GTT) took part in the showcase, depicting products of its fashion brand “Poshra”, highlighting its social business initiatives and informing visitors of the holistic approach that the organization assumes in addressing social problems. GTT Team members at the Social Business Market Place Two Nobin Udyoktas(NU) Nimai(Nimai Handicrafts) & Al Amin (Moyna Shatranji) of GTT also participated in the a handmade product which was created right on Market Place displaying their products. They spot. Professor Muhammad Yunus also visited the attracted a lot of attention particularly, Al Amin who stall and appreciated the effort and work of Grameen presented key note speaker Ms. Kerry Kennedy with Telecom Trust.
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GRAMEEN TELECOM TRUST TO FUND THREE SOCIAL BUSINESS PROJECTS Grameen Telecom Trust is currently engaged in various social business projects to uplift the social conditions prevailing in Bangladesh. During the Social Business Day, held on the 28th of June 2014, three new projects were launched by Grameen Telecom Trust for a total BDT 84 lacs. The announcement on the social business ventures came at a session of the Social Business Day discussion at Radisson Hotel in Dhaka. The first project is in Shyamnagar, Shatkhira with NGF for supplying pure drinking water.
In presence of Honorable Chairman of Grameen Telecom Trust (GTT), Nobel Laureate Professor Muhammad Yunus, three new social business ventures were launched on the occasion of 5th Social Business Day 2014
The two other projects are for a dairy foods business with LUSTRE in Naogaon and a mushroom seed business with ASHIKA based in the Chittagong Hill Tracts.
All partners of GTT represented by the Executive Directors along with the Managing Director of GTT, Ms. Parveen Mahmud and members of the social business team were present on stage. The Managing Director of GTT stated that these projects will address the social problems within the society while creating a source of employment for the unemployed. Nobel Laureate Professor Muhammad Yunus called upon the young generation to contribute with new ideas that will address social problems. He said that it is
possible to change the lives of at least 1% of habitants in this world through social business. “We have to know how to take the first step. If we take the first step, hopefully we can start the journey of thousand miles easily", he added. During the day, various other influential local and foreign dignitaries, academics, students and others were informed on different aspects of the concept of social business and discussed to find out ways through which unemployment could be turned into entrepreneurship to eradicate poverty from our society.
CONCLUDING SESSION In his concluding message Dr. Yunus said that he considers himself lucky that he was born in a country like Bangladesh. He mentioned that any country without any problem is boring. Problems mean that one is going to face challenges and overcoming those challenges should be the goal. He emphasized that a human being should never stop, they should continuously come up with new ideas with commitment to solve a problem. Dr. Yunus concluded saying the word 'retirement' should retire.
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Professor Muhammad Yunus, concluding the Social Business Day –2014
GTT SOCIAL BUSINESS IN PROGRESS
NOBIN UDYOKTA BRIEF Investment Agreements with Nobin Udyoktas Grameen Telecom Trust signed investment agreements with one hundred & twenty eight (128) Nobin Udyoktas (New Entrepreneurs) till 28th October, 2014. This was the twenty first (21st) batch of Nobin Udyoktas signing investment agreements with GTT. These aspiring entrepreneurs are all children of Grameen Bank families who plan to start new businesses or scale up existing ones. Grameen Telecom Trust under its Nobin Udyokta Program is providing assistance to them through investments and other ancillary services. The aim is to establish the youth as entrepreneurs who will be self employed and beyond self employment will create jobs for others.
MD of GTT signed investment agreements with Nobin Udyoktas (New Entrepreneurs).
Nobin Udyokta brief as of 28th October, 2014 No. of Business Offers Received NU Projects presented at SB Design Lab and Closed Session NU Projects approved and ready for investment Agreements signed NU Projects already in operation Average Business Size - (BDT) Equity Contribution Breakdown GTT Nobin Udyokta Gender Breakdown Female Male 13 125
140 140 138 128 107 550,016 46% 54% Total 138
Nobin Udyokta- Sector Wise Investment Breakdown Approved Investment (BDT)
Investment from Nobin Udyokta (BDT)
Investment from GTT (BDT)
Livestock
7,734,000
2,402,000
5,332,000
10.99%
Livestock - Feed & Medicine
1,265,700
640,700
625,000
1.80%
Telecom & IT Support
6,296,700
3,366,700
2,930,000
8.94%
IT Support
4,365,000
2,250,000
2,115,000
6.20%
General Retail & Wholesale
31,355,100
17,415,100
13,940,000
44.54%
44.54%
Clothing, Footwear & Apparel
Sector
Percentage 12.79% 15.14%
18,133,500
11,558,500
6,575,000
25.76%
25.76%
Crafts
867,000
267,000
600,000
1.23%
1.23%
Medicine Business
385,000
185,000
200,000
0.54%
0.54%
70,402,000
38,085,000
32,317,000
100%
100%
Total
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SOCIAL BUSINESS PROGRAMME UPDATES MoU signed with SDRS. The ceremony was presided over by Chairman of Grameen Telecom Trust, Nobel Laureate Professor Muhammad Yunus. Ms. Parveen Mahmud (Managing Director, GTT) & Md. Golam Mostofa (Executive Director, SDRS) signed the agreement on behalf of their respective organizations. GTT and SDRS will jointly establish the social business initiative called ‘SDRS Solar Project�.
MoU being signed by representatives from GTT and SDRS
On 27th October, 2014, at the 34th Yunus Centre Social Business Design Lab, held at the Grameen Bank Auditorium, GTT signed Memorandum of Understanding (MoU) with Social Development Rural Society (SDRS).
The social business focuses on assembling of solar power generation related instruments, promoting green energy, social & economic advancement through technology & employment generation to uplift the quality of life of the ultra poor people in the area. Forty (40) people would be employed in this project where at least twenty-five (25) would be females. Also, the profit from this project will assist fifty (50) children to receive computerized digital education.
Joint Venture Agreement with three different Companies: The Joint Venture Agreement (JVA) signing ceremony between GTT & ESDO and GTT & Green Savers was held at the 13th Yunus Centre Social Business Design Lab held at the Grameen Bank Auditorium on March 15, 2014. The JVA with ASHIKA was signed at the 25th Social Business Design Lab held on 23rd August 2014 at the same venue. The ceremonies were presided over by Chairman of Grameen Telecom Trust, Nobel Laureate Professor Muhammad Yunus. Managing Director of GTT, Ms. Parveen Mahmud FCA, represented Grameen Telecom Trust in penning the agreements, while ESDO was represented by its Executive Continued on page 9...
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JVA being signed by representatives from GTT and ESDO
JVA being signed by representatives from GTT and Green Savers
Director, Dr. Md. Shahid Uz Zaman, Green Savers Association by its Founder and President Mr. Ahsan Rony and ASHIKA was represented by their Executive Director, Mr. Biplob Chakma. The social business with ESDO called “Aroni Social Business” will focus initially on producing and supplying pure mustard oil throughout the country starting from Thakurgaon (where the project is based). The business will engage more than 1000 indigenous farmers who will be paid the best price for their mustard. The project partner ESDO, is a renowned organization of North Bengal, which has been working tirelessly for the last two and a half decades in uplifting the livelihood of the people in the region.
GTT and Ashika will jointly establish the social business initiative called ‘Mushroom Seed Social Business’, related to the production and supply of
JVA being signed by representatives from GTT and ASHIKA
Green Savers Association in conjunction with Grameen Telecom Trust will start “Mobile Plant Nursery and Clinic” to promote greenery throughout Dhaka city. Under the social business model the venture will operate a mobile plant nursery, provide agricultural extension services and undertake sale of fresh produce. Green Savers Association has been operating in the past years and has gained repute for its work in organizing the youth in working for a cleaner and greener Dhaka city.
locally produced safe and completely organic mushroom seeds/spawns throughout Chittagong Hill Tracts (CHT) and other parts of Bangladesh. The organic mushroom seeds/spawns will be sold to farmers and poor communities to help them get involved in this mushroom farming business and thereby uplifting their quality of life.
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Aroni Limited– A Social Business Company
Under the Social Business Learning and Innovation Fund (SBLIF) by Grameen Telecom Trust (GTT), a social business company in conjunction with Eco Social Development Organization (ESDO) has been formed, called “Aroni Limited.” The company focuses on producing and supplying pure mustard oil. The business engages hundreds of indigenous farmers producing the mustards and receiving the best price for their mustard. The company has also employed fourteen (14) individuals for operations (production/marketing/sales) where eight members (8) are males and six (6) females. Currently the mustard oil is available in four (4) sizes (1000 ml, 500 ml 250 ml & 100ml) in the market and the price varies from BDT 25 - BDT 185, depending on the size of the bottle.
Social Business Design Lab
View of the Design Lab
So far till October 2014 the total number of Design Labs conducted is thirty-five (35). Participants from different organizations attended these programs. The Social Business Design Labs were chaired by Nobel Laureate Professor Muhammad Yunus. The design labs were divided in three parts- update of past social business projects, presentation of new proposed projects and group discussion suggesting improvements on those projects. A Nobin Udyokta project “Meghna Carrom Board
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Factory” was presented by Md. Yeasin who is a Grameen higher education loanee. Yeasin had a well developed business plan, and assembled a carrom board on the spot in front of the audience. This project got on the spot approval for funding by Grameen Trust. As of 28th October 2014, Grameen Telecom Trust signed Investment Agreements with one hundred & twenty eight (128) Nobin Udyoktas and Operations Agreement on seven (7) Social Business Projects.
GRAMEEN TELECOM TRUST BRIEF 15th-17th Board Meetings of GTT held The 15th, 16th & 17th Board Meetings of Grameen Telecom Trust (GTT) were held on March 31st, June 24th and August 20th 2014 respectively. They were Chaired by Honorable Chairman of GTT, Nobel Laureate Professor Muhammad Yunus.
All departments informed the Board of Trustees on various operational updates. After the presentations and discussions, the board took a number of decisions and set future plans.
President and CEO of Grameen America visits GTT
Employees of GTT are seen with Ms. Andrea Jung.
Ms. Andrea Jung, President and CEO of Grameen America, met with the Grameen Telecom Trust (GTT) team. She learned about GTT’s activities and also provided an update on Grameen America's operations in the USA. The meeting was presided by Honorable Managing Director of Grameen Telecom Trust, Ms. Parveen Mahmud. Grameen America is a leading micro-finance institute in the USA founded by Nobel Laureate Professor Muhammad Yunus.
“ The word retirement should be ‘retired’ ” Nobel Laureate Professor Muhammad Yunus
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Employee Induction and Social Business Training
Honorable MD of GTT graced the Social Business Training and Employee Induction program
On Tuesday, August 13th, 2014, a Social Business Training and Employee Induction program was held for the new employees of Grameen Telecom Trust (GTT) at the Social Business Learning Centre (Level 5 of GTT premises). This arrangement was made to provide an introduction to the innovative concept of social business and the HR and Administrative policies.
The induction was conducted by Head of HR & Administration, Team Leader, Social Business & Program Support and Manager, Social Business & Communication. Ms. Parveen Mahmud (Managing Director, GTT) also graced the event and gave some valuable advice and guidance to the new employees.
SAVE THE DATES Global Social Business Summit 2014 November 27-28, 2014 Mexico City
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Social Business Day 2015 May 28, 2015 Dhaka, Bangladesh
Grameen Telecom Trust KALEIDOSCOPE Advisor: Professor Muhammad Yunus Executive Editor: Parveen Mahmud FCA
Editorial Team: Jayanta Kumer Bosu Abu Md. Munayeem Mirza Tabassum Muhammad Faisal Alam