The Role of Technology in U.S. Business Evolution

Mahaguthi is a social enterprise that was established as a profit-making, non-distributing firm. They reinvest 100% of their profits in supporting producers and communities, creating capacity, developing new products, and improving supply chains to increase social impact. They produce in-house and through a large network of producer groups. Their product line encompasses felt, textiles, and paper. Mahaguthi, founded in 1984 by a non-profit foundation, now generates approximately $1 million in sales annually. Although they have two shops in Nepal, 70% of their revenues come from exports to Australia, New Zealand, Japan, Korea, the United States, and Canada. They invest in new product concepts, such as employing Dhaka fabric and pioneering nettle fiber products (Allo).

Mahaguthi employs  people mostly women,and collaborates withproducer

Groups in 15 regions to support 1,100 producers, 85% of whom are women. Without shareholders demanding dividends, the board and management can prioritise their social mission. This enables them to commit to sourcing from communities that need more investment and support. During the Maoist struggle, they collaborated with handmade soap producers in Western Nepal, which was previously avoided by enterprises due to increased costs and hazards. Mahaguthi has invested in eco-friendly production, including improved fabric dyeing techniques, water treatment, and quality monitoring. Despite increasing expenses and time, the enterprise's mission-driven approach allowed them to prioritize expenditures.Organizations polled admitted sacrificing financial ambitions to promote social or environmental aims. These firms reject ways of growing margins that harm social aims, such as squeezing salaries, lowering producer pricing, or switching suppliers to reduce expenses. These businesses sometimes pay extra for products from craftsmen and producer groups. It's important to distinguish between financial objectives such as increasing sales and profitability. Fair Trade Enterprises prioritize increasing sales to create additional chances for producers. Orders are designed to maximize social effect, resulting in more inclusive and empowering livelihoods.

However increasing profitability is dependent on margins

Fair Trade Enterprises aim to ensure sustainable margins for both suppliers and buyers.Fair Trade Enterprises can contribute to the solution by adding value. This includes enterprise-owned brands, as well as processing and manufacturing. Maquita, a farmer-owned firm in Ecuador, operates multiple social enterprises. Maquita aims to go beyond just providing cocoa to global markets. The company processes and manufactures its own chocolate, generating more value and using it to benefit farmers and the community. In Peru, Candela is doing the same. Pacari is in Ecuador, and Zotter is in Austria. These WFTO members are successfully using the bean-to-bar approach. Trade Aid in New Zealand (another WFTO member) has constructed its own chocolate factory and is experiencing sales growth.Freed from the obligation of consistently increasing shareholder returns, Fair TradeCreative Handicrafts, an Indian garment manufacture company, aims to empower women.Yabal is a fair trade enterprise that supports sustainable fashion.Fair Trade Enterprises mostly assist women producers and communities with limited economic possibilities. Approximately 74% of WFTO members support women's livelihoods (26). Their income comes from commerce, but they prioritize supporting indigenous women's weaving cooperatives in Guatemala by selling their hand-woven products in local and international marketplaces. It collaborates with 50-60 female craftsmen to create, promote, and sell woven blankets, purses, scarves, soft furnishings, and decorative products. The Board of Directors is made up of 80 percent women, including the executive staff and members from the partner communities. Women earn 40% more than the minimum wage and typically make up 40-75% of the household income.

Yabal Guatemala a sibling  offers courses on skill development financial literacy

And savings circles. Research indicates that as household income rises, men tend to take on more housework and childcare responsibilities, particularly in younger households. Yabal, a tiny firm with a turnover of approximately €60,000, prioritizes quality and profitability over volume sales. Yabal promotes indigenous hand-loom weaving to preserve traditions, cultural emblems, and crafts. Artisan production methods, particularly hand-loom, have a zero carbon footprint. Yabal employs plant-based natural dyes to promote empowerment.With nine female board members representing female producers and one male CEO, the company aims to be gender-sensitive by offering a creche and promoting domestic violence prevention efforts. The company's board and management uphold a social objective and reinvest all proceeds to help female manufacturers. Employers can prioritize employing marginalized women over skilled people, perhaps leading to larger profitability. Yabal, a Guatemalan firm, aims to empower female manufacturers.offering compensated maternity leave. Additionally, they provide community training on gender, sex, and relationships to address a range of issues.Enterprises can create sustainable products and activities that promote social and environmental responsibility. This allows them to focus on their core purpose of contributing to resolving global issues. Last Forest of India is an excellent example of such a business concept, as mentioned below.