Notes of Note from John F. Ince

Social Capitalism – The most sustainable and thus profitable ecosystems will come from Social Capital based companies

Look at a microfinance company in India who raised over $350m at IPO, built around social capital.

SKS Microfinance IPO to raise up to $353m

Published on Mon, Jul 26, 2010 at 21:20 | Updated at Mon, Jul 26, 2010 at 21:47 | Source : Reuters

(Disclosure: I have no equity or other others interests at the time of writing in the company).

http://www.moneycontrol.com/news/ipo-issues-open/sks-microfinance-ipo-to-raiseto-36353m_472532.html

This is one among the many examples around the world from Mexico, Brazil and the United States to China, India and Europe, that social capitalists will lead the coming next wave of capitalism built around the most sustainable fundamentals and all for profit, except that everyone is included in a community.

Why? Because it is fundamental.

1. Deals with an industry’s value chain challenge and the key is “Fragmentation of Demand & Supplychains”, seen across in the most critical sectors of any community and economy, from Agriculture, Housing, Energy, Water, BFSI, Healthcare, Governance, to Commodities, Telecommunications and Education.

2.The only sustainable model is to leverage decentralized businesses based on Social Capital or Networks around communities, which lead to;

a.Lower SG&A

b.Lower NPA risks

c.Higher productivity of resources, Labor, Land and Capital

3.Inclusive by community of networks

http://en.wikipedia.org/wiki/Social_capitalism

Social capitalism

From Wikipedia, the free encyclopedia

Social capitalism (Socio-capitalism), as a theory or political or philosophical stance, challenges the idea that socialism and capitalism are inherently antagonistic.[1] The essence of social capitalism is that markets work best and output is maximized through sound social management of the macroeconomy.

via Social Capitalism – The most sustainable and thus profitable ecosystems will come from Social Capital based companies | Digital Vision Fellowship.

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