“Let the hacking begin: If facebook needs money, instead of going to the banks, why doesn’t Facebook let its users invest in Facebook in a social way? Why not transform Facebook into a ‘social business’ the way Nobel Price winner Muhammad Yunus described it?http://bit.ly/fs6rT3 What do you think? #hackercup2011”
That was the message update on the facebook page of Mark Zuckenburg. some few days, ago. Since I was his fan, I caught the updated message and took a snapshot of it.
I wrote an article about social capital and its benefits for entrepreneurs. The more I use social media networks like facebook, twitter, linkedin, Quora and the others, the more the points keep starring at me in the face. The good question am asking today is; why is social capitalism the best business model?
There is not a total agreement in the definition of the term, but I would look at two different definition, one is by Wikipedia and the other by Brian Solis.
The essence of social capitalism is that markets work best and output is maximized through sound social management of the macroeconomy. Social capitalism posits that a strong social support network for the poor enhances capital output.
Brian Solis
Brian Solis has an article on his blog about social capital. Take a very good look at what is currently happening at Quora. More and more people are coming together and are putting togehter great contents. sharing has become the other of the day. It is a kind of paying it forward. This is thesame thing a guest writer mentioned in Brian solis' blog as the holistic business strategy. It is holistic when companies are not just thinking of investors funds and growing the company but are equally thinking of the social organization that includes the company, the employees and the society. this is what he said;
Yes, businesses need to be drastically restructured in order to operate as a more social organization, with greater respect for each human within it.
The best business model therefore should look beyond making profit and growing. When making profit and growing are the chief focus, we would find out that some organizations would engage in sharp practices and would not be transparent. When they have opportunity to support NGO or humanitarian projects, they see it primarily as a way to gain. This has resulted into brands being hunters instead of farmers. What do I mean? 'They simply kill and kill, without replenishing the bush from which they kill the animals,' on the long run the bush would be depleted.
In my humble opinion, the social media tools we have come in democratize the business models. Any business that is not embracing this model, should be getting ready to extinct, mark my word. Social media is empowering customers and users more than ever before, and it is a lot more easier for different advocacy groups to emerge and champion a cause. Something awesome happened in a country in North africa, where the president had to flee the country. Social media had a role to play.
Rather than just think about the strategy to use in engaging in social media, which is important, they should also look at the holistic approach; considering the social organization.
Social capitalism is a fusion of Socialist style and Capitalist style. If Businesses do a re-think and implement these model, the would be a brand that would benefit from the ever increasing online social conversations.
which business model do you think is the best?
Do you think that the democratization of the media would help organizations to be more transparent?
use the comment box below and be heard.
Foolow me on twiiter @jesseoguns
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