The Life-Savers Now Need Saving

The Life-Savers Now Need Saving

July 3, 2020

Corona has already delivered a punishing blow in Germany. In developing countries, it’s hitting like a Tsunami. The economy has been brought to its knees. Half a billion people could slip deeper into poverty. Social businesses are part of the solution.

Alive and Kicking is a social business producing footballs, and employs over 1,000 people in Kenya, Ghana and Zambia. Mutinta Mwangi*, for example, is a mother of three who has been making footballs for fair wages for seven years. As Mutinta is deaf, finding stable work is near-impossible for her. Now, due to the Corona crisis, she is at risk of losing her hard-earned income.

After just one Corona case was registered in Kenya, the country cancelled all events, closed the borders, cancelled all flights and enforced home office. The region had learned from Ebola to act quickly. From one day to the next, Alive and Kicking, along with thousands of other small African businesses, lost its revenues.

To fight off bankruptcies in Germany, finance minister Olaf Scholz is employing a financial “bazuka.” And even that doesn’t make it into the hands of every SME. By comparison, African Heads of State with limited financial means can offer at most a “fly-swatter.” In Europe, we worry about the poorly protected 35 million newly unemployed Americans. For street traders and small farmers in Africa, words like “furlough” or “unemployment benefits” are alien concepts. 85 percent of the workforce in sub-Saharan Africa are informal workers. Anyone who loses their income falls into a void.

On top of the health crisis, an economic super-crisis threatens, which will hit developing countries especially hard. According to estimates by the UN, 500 million people could slip further into poverty; 250 million people could die of starvation.


So what is the solution? Social businesses can contribute in a very targeted way. These are companies that, through generating income, solve a problem. They are the social net that exists where governments fail. They create incomes for the poorest and provide them with essential services such as health care, education, drinking water, etc. Fleximedical, for example, provides “doctor practices on wheels,” with medical advice, diagnoses and important operations in poor rural areas of Brazil where the state health service fails. The company is now itself in need, as the necessary investments into Corona tests and respirators have led them to acute liquidity pressures.

These life-savers now need a safety net themselves. That’s why my organisation Yunus Social Business this month co-initiated, together with the World Economic Forum, a global alliance of 40+ organisations to support social enterprises through this crisis. This group represents 15,000 social enterprises that reach 1.5 billion people in 190 countries. On the growing list of organisations are: Ashoka, Bertelsmann Foundation, Ikea Foundation, SAP, Schwab Foundation. Skoll Foundation, USAID. The goal is to mobilise bridge liquidity for social enterprises and efficiently coordinate support programmes. Over 75 million dollars were already disbursed by the members of the alliance in the last four weeks, partly in the form of a simplified furlough scheme. The alliance is also providing access to contacts and helping to adapting business models as part of its support.

However, private aid can only ever be the beginning. Government funds, both from donor countries and the affected developing countries, must be urgently paid to social enterprises in a targeted, and thus cost-efficient, way. The American development agency USAID is already doing so. Over the course of the refugee crisis, Germany recognised that it is in its own self-interest to invest in Africa. The Corona crisis is only exacerbating this.

The survival of companies such as Alive & Kicking is essential for the poor demographic groups that they serve. What’s more, they are a prime example of the better post-Corona capitalism which we all desire. Fortunately, they are receiving funding from Yunus Social Business and can continue to deliver their important work. The world is currently at a cross-roads which will decide how our planet will look for the next generation. We cannot afford to lose the businesses of the future.

*name changed

Originally published in German in Capital Magazine. Written by Yunus Social Business Co-founder & CEO Saskia Bruysten.

Previous post

There is no previous post

Next Post

There is no next post

YSB presents the Social Success Note in partnership with The Rockefeller Foundation

Prof. Yunus visits Haiti Oct. 12-15

YSB 10 Years Celebration: Here's What Happened!

10 Years Of Social Business: Anniversary Report

Yunus Social Business Turns 10 Years Old!

6 Female Founders Changing the World with Social Business.

We are delighted to share the Yunus Social Business 2018 Impact Report.

We've been featured in the Hauck & Aufhäuser Magazine (German)

The Need of the Hour Amid COVID-19

Join Yunus Social Business on the Global Climate Strike this Friday!

Why Now? Is the Social Business Movement Reaching A Tipping Point?

Ist „#Social“ das neue „#Digital“? Unsere Gründerin Saskia Bruysten schreibt in Capital Magazin

We are delighted to share the Yunus Social Business 2018 Impact Report.

What are the Yunus Social Business team listening to? We list our favourite podcasts.

Remote Work is Here to Stay

It goes without saying, we are living through unprecedented times.

Corona Pandemic: Time Is Running Out Fast, A Letter From Prof. Muhammad Yunus

Thinking Ahead: Securitization Structure Helps to Democratise Technical and Medical Education in Bra

Yunus Social Business Co-Initiates New Alliance With World Economic Forum to Help Social Entrepreneu

“Going Back to That World Is Equal to Committing Suicide.” - Professor Muhammad Yunus on the Opportu

Amidst the COVID-19 Crisis, MBA Students Go Online to Support Our Social Businesses in India

“I Was Truly Blown Away When I Heard the News” - Yunus Social Business Has Distributed 650k USD to H

The Quick Social Business Christmas Gift Guide

Read Our Latest Impact Report

The Life-Savers Now Need Saving

COVID Response Alliance for Social Entrepreneurs, Initiated by YSB and WEF’s Schwab Foundation

Building The COVID-19 Response Alliance for Social Entrepreneurs

Fuelling social-business entrepreneurship in Kenya and beyond

YSB Launches Coursera Courses: Education For A World of Three Zeroes

Yunus Social Business and the Schwab Foundation for Social Entrepreneurship partnership

Your mission is bigger than your job.

Living Up To Our Mission: Our 2020 Annual Report

It's Giving Tuesday! Give What You Can Today.

Have you heard of Giving Tuesday before? It is a movement to create an international day of charitable giving at the beginning of the Christmas and holiday season. Today we are encouraging you to spare what you can to create a better world - for the future of all of us.

Impact Water have reached 1,000,000 children in Uganda

Impact Water have reached 1,000,000 children in Uganda with clean drinking water. And the best bit? They aren’t a charity but a pioneering social business.

Brazil Impact Excursion | February 2019 | YSB & CSP

Along with The Center for Sustainable Finance and Private Wealth (CSP) at the University of Zurich went out and about around São Paulo at the start of February to explore the ecosystem of social businesses and investment. Take a look at our fantastic week in the video:

The Social Procurement Manual

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat.

Social Business Day 2018 Roundup. Bengaluru, India

Our Project Intern Philine played a crucial role in putting together Social Business Day 2018, hear from her how it all came together.

Are we ready to talk about social transformation?

As we embark on our next round of research into social intrapreneurship at Yunus Social Business, we are looking at the business case for social transformation. In a year where we've seen short-term priorities rise to the top of the agenda, can empirical proof help turn the tide?

Cookie Consent

We use cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our cookies usage.