Dr. Yunus is a visionary AND he’s a hands-on practitioner committed to transforming his homeland through outside-the-box thinking, flexibility and effective implementation. Brings to mind a modification of the old Sinatra refrain from New York, New York: “If he can do it there, we can do it everywhere.”

Do what? you might ask. Use business to tackle social problems. Micro-credit is an inspired notion and an effective reality. ElegRoo supports micro-credit through the totally great KIVA.org.

But we at ElegRoo are taking a lead from Dr. Yunus beyond micro-credit. In Creating A World Without Poverty, Dr. Yunus proposes the idea of “social businesses”, that is, businesses organized as for-profit enterprises, but whose sole goals are to achieve some social benefit. All profits are plowed back into the company. Investors receive no dividends, no profits whatever. They can expect to receive back their initial investment and will still own the company and direct its efforts.

A “social business” must compete head-to-head with ordinary for-profits by dint of the value of its products and/or services.

LuAnne Speeter reports that “[65%] of consumers believe businesses are responsible for having a greater social purpose beyond profit … that businesses have a shared responsibility to address and solve today’s social and environmental issues through a blending of social initiatives and business operations.”

But other attempts at formalizing business commitments to social issues, like B Corporations, are hybrids that attempt to serve two masters — social benefit and investor profit. Dr. Yunus predicts that, at some point, each of these hybrids will face a choice, and that investor profits will prevail. No such Hobson’s Choice can afflict a “social business” — investor profit motive is simply not present to diverge from the social benefit motive.

100% of the ownership of Elegant Roots agrees with these notions and believes also that the vision and mission for Elegant Roots [to promote social justice and eco-consciousness by providing a market for goods that further these goals] fits squarely within the notion of “social business” propounded by the good Dr. Yunus.

100% percent of the ownership has directed that ElegRoo management begin the process of formally converting Elegant Roots into a “social business.” Watch this blog for the ANNOUNCEMENT when the conversion is complete.

Our loan of a modest $25 put Mr. Jesus Gustavo Espinoza Almendares of Honduras over top on his requested loan. The fact that we could make the completing loan adds a certain thrill to an otherwise rewarding experience of a person-to-person gesture. Especially given the unsettled nature of Honduran politics, we’re hoping that this loan can accord a modicum of stability.

Taken from kiva: Mr. Jesus Gustavo Espinoza Almendares has been running his own carpentry business for over 4 years. His business operates under the name of Carpinteria ESPINOZA.

In his workshop he produces a large variety of furniture such as panel doors, windows, tables, dressers and beds. His workshop stands out because it also produces wood panels for vehicles.

He lives with his common law wife and is a father of 3 children, who depend on him 100%. All of his children are in school. With the profits that the business generates, he is able to cover his financial needs at the moment.

He needs a loan to move his business forward. He also has a project to manufacture several types of furniture and he needs the capital to start this project.

ElegRoo (and this writer) strongly recommend that you check out kiva.org. You can now loan to US persons. You can create a “team” for loans — I just saw one associated with a wedding (a great idea to start married life with such a cooperative gesture of goodwill).

Try kiva. You’ll like it. I can guarantee it.

Later.

ElegRoo’s loan was made to Abdusalloh Manonov who lives in the Varzob region of Tajikistan. He works as a school teacher and in 2008 was honored to be named the best teacher of the year. Abdusalloh is married and has four children.

To supplement his income, Abdusalloh raises vegetables and cattle. He purchases calves for fattening and sells them once they are fully grown. He will use the loan to enlarge his herd by buying two additional calves.

The total loan amount that Abdusalloh requested was $600, but lenders may loan an amount as low as $25.

Elegant Root’s 1st KIVA microloan was only $25 but it was the final $25 needed to go over the top and reach $600. The $600 has now been disbursed to Abdusalloh and his repayments will begin in August.

Microloans are an amazing people-to-people program and Kiva is fantastic. Join in now! You’ll be glad you did. www.kiva.org