Page 157 - Social Enterprise A New Business Paradigm for Thailand

operation, Grameen found that women were far more reliable borrowers and subsequently
shifted its focus to lending primarily to women.

While Grameen Bank began with a focus on providing credit to the poor, it gradually expanded

into other areas such as hygiene, health, and positive behavioral practices like saving. It also began
supporting the education of borrowers’ children, from early childhood through to college, based
on each recipient’s potential. In 2013, the bank established the Yunus Center to advance the
development of social businesses, and launched the Business Design Lab to support small-scale
entrepreneurs seeking investments of USD 1,000 to 3,000. These enterprises are interlinked to
form an ecosystem that nurtures social business, one of the defining features and key success
factors of the broader Grameen network.

5.1.1 Grameen Bank’s Subsidiary Enterprises
Grameen Bank has established several subsidiary companies that operate as social businesses in
various forms. Table 5.1 lists all companies as of 2007 (Yunus, 2007); however, this section focuses
only on those entities created by Grameen Bank as part of its support network and basic
infrastructure, designed to serve as an ecosystem for social business. These include:

1) Grameen Trust – Originally a subsidiary formed to develop and train personnel for Grameen
Bank and other microfinance institutions (MFIs), Grameen Trust provides expert training,
consultation, monitoring, evaluation, and technical support to micro-lenders. It also
coordinates international donations for small MFIs, with donors such as the MacArthur
Foundation, World Bank, and USAID. In addition, Grameen Trust offers consultancy services
to implement Build-Operate-Transfer or turnkey systems for funders seeking to establish MFIs
in developing countries such as Zambia, Costa Rica, Indonesia, and Myanmar.
2) Grameen Fund – Initially created as a venture capital fund within Grameen Bank, this entity
supports businesses that require more substantial capital than the bank’s regular loan ceiling.
It typically invests as a majority partner (holding 51% equity) in new companies that deploy

innovative technologies or operate in manufacturing sectors, such as Grameen Knitwear.
3) Grameen Kalyan – This enterprise provides health and welfare services. It developed a
software system called Shumata to monitor the health of pregnant women in rural areas,
aiming to reduce the risk of miscarriage. Later, in collaboration with multinational corporation
Intel, it introduced electronic wristbands for maternal health monitoring.
4) Grameen Shakti – A social enterprise in the energy sector, Grameen Shakti is committed to
environmental protection and improving living standards in rural Bangladesh. It promotes

alternative energy by selling solar panels, solar-powered mobile phone chargers, smoke-
reducing cookstoves, and biogas systems made from animal waste, offered at prices
affordable to low-income households. As of 2017, the enterprise had distributed products to

124