Muhammad Yunus

Muhammad Yunus (born June 28, 1940) is a Bangladeshi economist and social entrepreneur who revolutionized approaches to poverty alleviation through the invention of microfinance. Born in Bathua, Chittagong, Yunus earned his Ph.D. in economics from Vanderbilt University and initially worked as a university professor. In 1976, during the Bangladesh famine, he personally loaned $27 to a group of poor women and witnessed how small amounts of capital could transform lives. This transformative experience led him to found the Grameen Bank in 1983, which pioneered the concept of microcredit—providing small loans to the poor without requiring collateral, based instead on trust and group accountability. The Grameen Bank extended credit primarily to women in rural areas, empowering them to start small businesses and achieve financial independence. By the early 2000s, Grameen Bank had served millions of borrowers and inspired similar microfinance institutions globally. Yunus won the Nobel Peace Prize in 2006 for his efforts to create economic and social development from below. His work fundamentally challenged conventional banking wisdom and demonstrated that the poor are creditworthy when given appropriate support. Beyond Grameen Bank, he has founded numerous social enterprises addressing education, healthcare, and renewable energy, embodying his vision of 'business as a vehicle for social change.'