What is Social Capitalism and how will it benefit society as a whole?

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Trust, reciprocity, and cooperation: these three elements make social capitalism an ideal form of an emerging structure with the sole purpose of building networks and producing resources that contribute to the common good.

In definition, social capitalism is related but is structurally different from its classic counterpart. The term, in modern times, is a society-centered form of capitalism which primary goal is to contribute to the society. Here, the production of goods and services are not controlled as personal assets but a property produced to address the needs of the community.

As a practice, social capitalism revolves around the maintenance and development of social networks, a collective group of people helping each other to achieve common goals. These networks can be diverse and they usually pursue different causes.

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Social capitalism and social capital

In social capitalism, capital is defined as a factor of production where society agrees to the value of its origins and accounts for it. Unlike its classical counterpart in which land, labor, and capital are the primary factors to make the system work, a social capital in the modern sense cannot be traded and cannot be privately owned. Instead, ownership is rooted in social links, networks, and relationships among people. Furthermore, social capital is not created to satisfy productive economic outcomes.

With all its benefits and contribution to the community, social capitalism is not the same as philanthropy or a charitable cause. Instead, it’s a structure that is designed to endorse capital for the common benefit through the markets either directly by an individual or by a group, responding to social issues and at the same time, making a profit.

Beyond its somehow altruistic nature, social capitalism has also helped develop policing strategies among communities. This form of capital became an important catalyst for change and has been utilized by leaders to increase efficiency and effectiveness.

REPOST: 5 Entrepreneurs Who Started With Nothing – and 3 Lessons to Learn

How far you will go in life will largely depend on your drive, perseverance, ability to take calculated risks, and above all, patience. Let these five entrepreneurs–who had very humble beginnings–inspire you to become a better, more successful person:

 

It’s not uncommon to hear about entrepreneurs who used the wealth they made from a previous endeavor to build a thriving new startup, or about seasoned business owners who took over a decades-old franchise and transformed it into something new. These stories are inspiring in their own way; but to me, it’s even more inspiring to hear about people who started with nothing.

 

These are entrepreneurs who started their journey with no capital, no funding and sometimes no education or experience, yet despite the odds were still able to build massive successes.

 

How did these people accomplish such unlikely feats, and what can we, as entrepreneurs, learn from them?

 

1. John Paul DeJoria

John Paul DeJoria isn’t as much of a household name as Steve Jobs or Elon Musk, but he has accomplished feats of entrepreneurship and business management that rival theirs. Starting out as a newspaper courier, and working as a janitor and tow truck driver to make ends meet, DeJoria eventually started working at a hair care company, where he met Paul Mitchell.

 

2. Kevin Plank

Kevin Plank, the CEO of the fitness apparel company Under Armour, was pretty much broke when he started selling signature clothing under the Under Armour brand. He took all the cash he had saved, about $20,000, and racked up an additional $40,000 of credit card debt to fund the company.

 

Soon after, he made a landmark sale of $17,000 to Georgia Tech University, and in a wave of momentum, made sales to two dozen NFL teams. From there, he went on, in just a few years, to cultivate millions in sales and hire hundreds of employees. Today, Under Armour does nearly $2 billion in retail sales, and has 5,900 employees.

 

3. Jan Koum

Jan Koum, the founder of WhatsApp, was born in a small village near Kiev in Ukraine. Coming from poverty, Koum’s family emigrated to California, and Koum started learning about computers in his spare time. By the time he was 18, he had developed impressive skills, and in 1997, he was hired by Yahoo! as an infrastructure engineer.

 

He spent a decade in that industry before realizing the huge potential of the app industry in 2009 and starting WhatsApp Inc. By 2014, WhatsApp had become enormously popular. Facebook bought the app for a staggering $19 billion.

 

4. Sam Walton

It’s almost ironic that Walmart is frequently criticized for underpaying its employees and using cutthroat tactics to maximize profits. Sam Walton, Walmart’s founder, had almost nothing to his name himself when he started his first general store back in 1945.

 

He relied on a $25,000 loan from his father-in-law to fund that initial purchase, and was an instant success in the retail industry. The first official Walmart was opened in 1962, in Rogers, Ark.; and by 1976, Walmart was worth more than $176 million. At one point, Walton was considered the wealthiest man in the United States.

 

5. George Soros

Though you could describe him as an investor more than an entrepreneur, there are few better rags-to-riches stories than that of George Soros. When Soros was a teenager in Hungary in 1947, he fled Nazi persecution to live in England. Despite having little money to fund his efforts, he attended the London School of Economics, working his way through university to obtain his degree. He then moved to the United States in the 1950s, and became an investment manager for a number of major firms, eventually starting his own hedge fund and building his own company.

 

His most famous move was shorting the British pound in the early 1990s — which made him $1 billion in a single day.

 

Key lessons to learn.
So what can we learn from these entrepreneurial stories?

 

Debt is a viable option. Debt is scary to take on, especially when your idea isn’t a sure bet, but almost everyone on this list got a loan at some point to establish early momentum. As long as you have a plan to pay it back, debt can be a valuable tool.

 

Invest in yourself. You need to invest in yourself before you invest in anything else, by focusing on improving your skills, education and experience. Without self-investment, you won’t be able to build a business, let alone sustain one.

 

Look to the future. These savvy entrepreneurs didn’t enter a market that already existed; they created new ones, or made bets on how current markets would evolve. Future-focused strategies always win out over present-focused ones.

 

Entrepreneurs can come from humble beginnings, so long as they’re willing to work hard, commit to their ideas and take the risks necessary to see those ideas become reality. Take inspiration from the massive successes who have come before you, and don’t let a lack of money or experience dissuade you from following your dreams.

20th Century big tech brands that no longer exist today

The 20th century was a period of rapid technological revolutions and many who have witnessed this era have seen the rise of big companies that dominated the industry. Unfortunately, most of these brand names failed to survive and keep up with the changing times – and some have just become shadows of what they were before.

Here are three of the major tech brands that rose during the twentieth century but no longer exist today.

 

Compaq Computers

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Compaq was known to be the first company to re-engineer IBM’s personal computers and made it available to the market. It was during the early 1990s when it topped the sales charts as the major corporation to successfully program IBM-compatible personal computers.

However, in 2001, Hewlett-Packard acquired the company for $25-million and it eventually led to losses in sales. It was only 12 years later when HP finally dropped the Compaq line.

 

MSN Messenger, IM

Image source: theverge.com

This once popularly used instant messaging program was created in 1999 by tech giant, Microsoft. The brand’s effort to keep up with the forever changing user preferences has inspired it to evolve into Windows Live Messenger ten years after it was developed.

However, Microsoft decided to discontinue the messaging client in 2011. Later on, the corporation’s acquisition of another IM application, Skype, sealed the fate of MSN Messenger.

 

Circuit City

Image source: nydailynews.com

Perhaps it was intense competition that led to the fall of this television and electronics company. During its golden years, it operated over 1,500 stores across the U.S. – until Best Buy came into the picture.

In addition, their decision to stop selling appliances made it worse and no matter how many stores and branches they opened to keep up, most of these new ventures failed.

It was in November of 2008 when Circuit City declared bankruptcy. However, several reports suggest that the company is attempting to start over and is hoping to attract the millennial market.