Time for a new kind of capitalism?

The global financial crisis has led to serious questions, about the state of world capitalism. Anger is still running hot and strong against what's perceived as the selfishness and greed of those in big Western banks and corporations.

But there are some entrepreneurs who believe now is the time for another kind of capitalism to grow and flourish - a more kind and compassionate form which has social good as its goal, the betterment of the lives of the world's poorest people, and of the environment.

The founder of Microsoft, arguably the world's biggest philanthropist, Bill Gates, talked last year about his new vision for capitalism.

Social entrepeneurship

To some people Bill Gates's "creative capitalism" is another name for "social entrepreneurship".

The BBC's Bangladesh correspondent, Mark Dummett reports on one example of that entrepreneurship in practice - a company which ploughs its profits back into the business to expand employment for poor women in Bangladesh.

It is a toy company called Hathay Bunano, and its founders say the goal is to make money, in order to tackle poverty.

Revolutionary potential?

The idea of the social entrepreneur has been around for years, but it's gathered pace in the past couple of years. With the global financial crisis squeezing charitable giving, socially-oriented organizations want to generate more of their own funds rather than relying on donors.

New business models are being tried out which blur the old definitions. On the one hand, charities and nonprofits are becoming ever more businesslike and on the other, companies are being encouraged to show more concern about the social impact of what they do.

There are those who hold that social entrepreneurship can revolutionise the world. Others are deeply sceptical, especially in a recession. But what does the term itself really mean? Are social enterprises different from any other plain vanilla company with decent ethics and a philanthropic attitude?

Dr Rebecca Harding is an expert on social entrepreneurship, and the co-founder of the World Entrepreneur Society.

First broadcast on Business Daily on 24 April 2009