CHAPTER SEVEN

The Fourth Sector

The social sector as capitalism's R&D lab

I'm deeply convinced that [humanity's] future relies on our ability to explore and invent new business models and new types of business corporations.

—Muhammad Yunus, in a speech to the Global Alliance forImproved Nutrition

Imagine you're a venture capitalist. An entrepreneur is passionately pitching you a start-up: “Today, the World Bank says it's a $1 trillion market. And no one is offering a service to capitalize on it. It's an absolute virgin market!”

“Maybe,” you counter, “but no one's ever figured out how to serve this market at scale. It's all individual practitioners.”

“Exactly! That's the beauty here. By investing in a process model, we can totally roll this ...

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