TAGET 2050 utilizes a social business model in its engagements and is convinced that the social business approach can ultimately contribute towards just and equitable communities in Tanzania. Conceptually, social business, as defined by Professor Muhammad Yunus, is a cause-driven business created by a social entrepreneur in order to address and solve a community social problem and sustainable achieve defined objectives.
In a social business, the investors or business owners gradually recoup the money invested but cannot take any dividend from the accruals. That is, once a business project achieves full recovery or breaks even in respect of its investment, the profit remains to sustain the organization and enable it to meet its social responsibility to the community.
The Social Business (SB) Principles
TAGET 2050 social business engagements are characterized by the following principles:
- The business must aim to overcome poverty and related problems in a society by not maximizing profit for individual owners of business but promoting the achievement of social impact, which in the case of TAGET 2050, focuses on the problems to be addressed and relating to inadequate provision of useful, problem solving education, training in entrepreneurship skills, inadequate and inefficient production in agriculture, lack of crop processing skills and facilities to add value to the crops, inadequate and low affordability of health services and conservation of traditional medicinal plants.
- Assured financial sustainability through the consistent and sustainable production of goods and services,
- Non-issuance of dividends to business investors beyond the amount invested in order to allow impact on society,
- When the invested amount is paid back to investors, 51 percent of the profit is used for society common good and impact creation,
- Social business investments are environment-friendly,
- Social businesses pay employees market wages with better working conditions,
- Investors in social business do so with joy. In the case of business liquidation, all donated assets are passed on to another social business with impact on society.