Yunus Centre has signed an  agreement on July 16 at the invitation of the Mayor of Napoli and leading social innovation organizations in Southern Italy to establish the Mediterranean Social Innovation District—the first initiative of its kind in Italy inspired by the Social Business model pioneered by Professor Yunus, a press release said.

The agreement signed  at the headquarters of FOQUS – Fondazione Quartieri Spagnoli in Naples during Professor Yunus’s visit to Napoli at the invitation of the FOQUS. The initiative brings together organizations from Naples, Palermo, and Potenza to build a collaborative ecosystem of social businesses that will generate social businesses, strengthen local economies, and promote inclusive development across Southern Italy.

Under the agreement, Yunus Centre and its Italian partners will work together to develop a new model of sustainable and inclusive economic development based on Professor Yunus’s Principles of Social Business. The initiative aims to demonstrate how business can be designed to solve social and environmental challenges while creating entrepreneurship and opportunities for disadvantaged communities.

Speaking at the signing ceremony in an open meeting of citizens addressed  by the Mayor of Naples, Professor Muhammad Yunus said, “Disadvantaged communities should not be considered as a burden, it should be laboratories of creativity, initiative, and untapped human potential. Social business can help unlock this potential, enabling people—especially young people, women, immigrants, and vulnerable communities—to become creators of solutions rather than passive recipients of assistance.”

The Mediterranean Social Innovation District represents a significant milestone in the global expansion of the social business movement. Rather than relying primarily on traditional welfare approaches, the initiative promotes entrepreneurship, innovation, and community ownership to address poverty, unemployment, social exclusion, and environmental challenges.

As part of the collaboration, Yunus Centre will provide technical expertise, international networking opportunities, and strategic guidance for developing the District. The agreements includes the creation of an international Social Business Fund with a focus on youth and women entrepreneurs, ongoing mentoring of  social businesses, and collaboration with the global Yunus network to develop innovative solutions, including those addressing migration and social inclusion.

During the initial three-year implementation period (2027–2029), the partners plan to establish 14 new social businesses across Naples, Palermo, and Potenza.

Professor Yunus emphasized that Southern Italy has the opportunity to become a “European Laboratory of Social Business,” demonstrating how economically disadvantaged regions can transform local challenges into engines of innovation, employment, and sustainable development.