2. SOCIAL ENTREPRENEUR INVOLVED
IN POVERTY
Muhammad Yunus was born on 28th June 1940 to a family
of 9 children. His mother was a jeweller, and the family was well
off, compared to the other families in Chittagong, India.
His pursuit of studies in Economics eventually earned him a
PHD in economics, as well as the position of assistant professor
at Middle Tennessee State University.
Eventually, he headed the economics department of Chittagong
University.
3. INSPIRATION FOR SOCIAL
ENTREPRENEURSHIP
During a trip to a university, Muhammad Yunus visited
the poorest households in a village near the university,
and found that the residents were too poor to be able to
take loans from banks, as the banks were worried that
these poorer residents were unable to repay the loans.
However, Yunus observed how those few that did receive
loans worked hard to make the best of the loan and repay
their debtors, and realised that it was only through loans
that they were able to make a substantial profit and
possibly bring them out of their poverty.
And thus, he had the idea to set up a firm to create
microcredits, which are similar to loans but on a much
smaller scale, and open to these poor residents to help
them make a profit from these loans and bring them out
of poverty.
4. CONTRIBUTIONS AS SOCIAL
ENTREPRENEUR
Muhammad Yunus set up the Grameen Bank as a means to create a mutually
beneficial relationship between one receiving the loan and one lending it, as the
interest rate is charged at a reasonable rate and the amount lent is small, which is
what conventional banks attempt to avoid because of accountability issues.
He has also attempted to break existing social discriminations against women in
Bangladesh by encouraging them to borrow money from him to start businesses.
In fact, this practice prompted conservative clergies to threaten to deny women the
right to a muslim burial should they borrow from Grameen Bank.
5. IMPACT AND ACHIEVEMENTS
• In 2006, Muhammad Yunus received the Nobel Peace Prize for
his contribution to curb poverty in Bangladesh and other
countries.
• As of October, 2011, it has 8.349 million borrowers, 97
percent of whom are women. With 2,565 branches, GB
provides services in 81,379 villages, covering more than 97
percent of the total villages in Bangladesh. It has also
branched out into 12 other countries
•The bank currently lends more than $500 million a year with a
repayment rate of better than 97%
