An Empirical Investigation of Social Business in Developing Economies in Bangladesh and Pakistan

Abstract

This study explores the concept of social business (SB) and its relationship with corporate social responsibility (CSR) in the context of developing nations, with a specific focus on Bangladesh and Pakistan. Social business, as a self-sustaining and impact-driven model, offers an alternative approach to addressing socio-economic challenges by integrating business principles with social objectives. This research employs a qualitative methodology, utilizing secondary data from various publications and publicly available records of Grameen Bank, a pioneering microfinance institution founded by Nobel laureate Dr. Muhammad Yunus in Bangladesh. By examining Grameen Bank’s initiatives, the study identifies key forms, principles, and funding mechanisms of SB and attempts to draw comparisons with Pakistan’s emerging SB landscape. The study systematically organizes and assesses the long-term implications of the SB model, hypothesizing its scalability and applicability to other developing economies. Findings indicate that the SB model operates through a structured five-step process: needs analysis, goal setting, business solution design, proposal evaluation, and implementation. These steps ensure that social businesses remain focused on sustainability and impact. By analyzing social business interventions in Bangladesh and Pakistan, this study highlights SB as a highly effective strategy for addressing poverty and other pressing social issues in emerging economies. Furthermore, it underscores the role of SB in fostering inclusive economic growth, financial empowerment, and sustainable development. The insights derived contribute to the broader discourse on ethical entrepreneurship and the potential for socially driven business models to complement traditional CSR initiatives in developing nations.