How Social Businesses are Creating Sustainable Business Models

Abstract

Aim of the Study: The purpose of this study is to give a practical example of how a social business is transforming business models.

Methodology: Case study methodology is used. One major company is studied and the findings related to that company are presented

Findings: The purpose of a social business is not just to make a profit. But the larger goal of any social business is to meet the social needs of people. The case of Akhuwat has shown that it is possible to maintain a sustainable business model while at the same time serving a social purpose

Conclusion: Akhuwat came up with a new model of social business in which they distributed interest-free loans to the needy. The idea was to distribute interest-free loans to the needy when the traditional micro-finance sector was charging competitive mark-ups on micro-loans. Akhuwat came up with the model of accepting donations directly form people and distributing them directly among the needy. But, over time, it has emerged as the largest micro-finance institution of its kind, which speaks for the success of its programs. Hence, we can see how Akhuwat helped achieve the SDG of poverty alleviation by adopting a new business model.