Realizing Development through Social BusinessesPeter Bladin, EVP, Programs & RegionsGrameen FoundationOctober 2, 2010

Abject Poverty Is Widespread

1.4 BILLIONpeople live on less than $1.25/day

1.1 BILLIONpeople have no access to clean water

8.8 MILLIONchildren die each year from preventable diseases before age 5

2Source: World Development Indictors 2010, World Bank (data from 2008)

Grameen Foundation Mission

To enable the poor, especially the poorest,

to create a world without poverty

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Grounded in a Proud HeritageNobel Laureate Muhammad Yunus and Grameen Bank

Launched Grameen Bank in 1976• 7.9 million borrowers;

96% women• Members-owned bank• Over $8.2 billion loaned;

97.9% recovery rate

Gave $6,000 grant to launchGrameen Foundation in 1997

New focus on promoting and establishing social businesses

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Microfinance: A Proven Strategy

Reaching more than 150 million families

More than 95% repayment

90% of demand still not met

Widespread effects: creates access to

education and healthcare for clients’ families

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Impact of microfinanceMore than 90 impact studies support microfinance

Findings show:

• Microfinance accounted for 40 percent drop in moderate poverty in rural Bangladesh

• Very poor clients do benefit from microfinance

• Children of clients are better nourished and healthier

Source: Measuring the Impact of Microfinance: Taking Stock of What We Know,Nathanael Goldberg

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Impact of microfinance

Marie-Claire Ayurwanda7

• HIV-positive, single mother with four children

• Member of URWEGO, a Grameen Foundation partner in Rwanda

• First loan of $40 helped open a small restaurant; further loan used to purchase Village Phone business

• As a result of the Village Phone business, Marie-Claire generates roughly $600 per year, attracted more customers to her restaurant and provided education for all four children

Technology: Opening New DoorsAlmost 5 billion cell phones globally

Two-thirds of cell phones in developing world

Providing new access to information services

Bridging the digital divide

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Social Development with Technology

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Mobile Applications

Health Agriculture

MarketplaceWeather

What Can You Do?

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• Continue what you are doing… Visit projects and advice local social entrepreneurs

• Work with local educational institutions (like Ashesi) that are educating the next generation of (social) business leaders to improve people’s lives and livelihoods

• Invest in social businesses or donate to programs with an economic and social outlook – the double bottom line matters

• Embrace social business concepts to solve development problems (i.e. incorporate economic development aspects into on the ground health programs)

www.grameenfoundation.org

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