On June 26th 2013 the Zukunftsforum Windhaag (future forum Windhaag) and ACADEMIA SUPERIOR discussed the topic „Social Business in rural areas — dream or nightmare?“ with entrepreneurs, heads and members of various associations and Upper Austrian institutions.
Social Business as a part of regional entrepreneurship and rural business cycles
At the location „Köglerhof” in Gramastetten near Linz, Upper Austria, the participants tried to view the topic „Social Business” from various different angles. What does Social Business mean? Which obstacles does it face and how can it be supported? Next to the steps an individual can take to encourage and promote Social Business in rural areas we also drafted recommendations for Upper Austrian politics and decision-makers.
The concept of Social Business was developed by nobel peace prize winner Muhammad Yunus and includes the following 7 principles:
- Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which threaten people and society; not profit maximization
- Financial and economic sustainability
- Investors get back their investment amount only. No dividend is given beyond investment money
- When investment amount is paid back, company profit stays with the company for expansion and improvement
- Environmentally conscious
- Workforce gets market wage with better working conditions
- …do it with joy
(www.muhammadyunus.org)
Many young, well-educated people want to move back to the rural areas they grew up in and be entrepreneurs serving the public good
Social Business, meaning business serving the environment and the community, is a major step towards sustainability, decentralization, regional development, a change of values, solidarity and last but not least, personal satisfaction. Social Business needs structural, financial and legal political support, as well as backing by society. Structural changes of the education system or financial aid for young entrepreneurs in rural areas will not be sufficient, though. Social entrepreneurs also need the space in order to develop their ideas for Social Businesses. Many young, well-educated people want to move back to the rural areas they grew up in and be entrepreneurs serving the public good. These social entrepreneurs herald the establishment of future-oriented, resilient regions, which is why they deserve acceptance and respect. Their courage should be acknowledged, encouraged and strengthened. The communes in particular should be concerned by the issue in light of their own future perspectives. That is how harmonic business cycles, especially in rural areas, can be formed, centralization can be prevented and a healthy regional development can be ensured.