Tuesday, September 27, 2011

Social stock market

Needless to say, effort to make revenue to run the social business is very important to be sustainable. In addition to that, I believe there are three major funding sources for social business
1. Donation
2. Government support
3. Social stock market
Social stock market is suggested by Muhammad Yunus.
http://yunusforum.net/?p=272

I believe it is really important for sustainable social business. When we had financial crisis in 2008, those who were relying on stock market had great trouble. If it's a business for profit, then, it is fine as it is part of the capitalism mechanism ("natural selection"). However, for social businesses, sustainability is very important to keep bringing good results to the society as it takes long time to improve society. So relying on unsustainable market is not good for them.

However, to prepare such a market, we need to develop common rules for the market such as what companies need to disclose, how and who will check the results, what are the indicators for success, regulations, etc. Basic system and procedure can be same as stock market, but since the purpose of the market is different, they need to adjust for the difference. And also, there should be enough players in the market to be successful and sustainable.

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