Is it Wrong for Business to Profit from the Poor?

Mohammad Yunus is a nice man. He's also very smart, innovative, a risk-taker -- and a winner of the Nobel Prize for Peace. However, he is sometimes wrong. And he's most certainly wrong when he insists, as he has done so frequently in recent years both in his books and in public appearances, that the solution to global poverty lies in forming "social businesses" that never distribute profits to investors. “Poverty should be eradicated," Yunus asserts, "not seen as a money-making opportunity.” He believes that investors in social businesses should only get their money back. In my view, that adds up to a sizable interest-free subsidy,…

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Building A Better Mousetrap is Only the Beginning

Paul Polak Responds to Acumen Fund's Lesson #6 - "Great Technology Alone is not the Answer"  Question: If you build a better mousetrap will the world beat a path to your door? Answer: Without superb marketing and distribution nobody beats a path to your door. In my work with a multitude of affordable technologies over the past 30 years, one key feature has become abundantly clear: If you have met the challenge of designing a transformative, radically affordable technology, you’ve successfully solved no more than 10-20% of the problem. The critical other 80% of the solution lies in designing an effective marketing, distribution, and profitable…

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Why Ending Poverty is Greener than Green

I believe that ending extreme poverty can have a greater positive impact on the environment than just about anything else we can do. Because of its central role in population growth, climate change, loss of biodiversity and conflict, implementing practical solutions to extreme poverty is probably the first place to start if you want to make a significant contribution to preserving the environmental balance of the planet. Practical solutions to extreme poverty already exist. If organizations like IDE and the Grameen Bank have helped some 40 million extremely poor people move out of poverty, what’s stopping us from scaling up the market driven approaches that can do the same for a billion people?

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