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Profit and Non Profit Organisation

In: Business and Management

Submitted By evonn
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Discuss the main features of for-profit and not-for profit social enterprise?
 Social enterprise are businesses that deal with the social problems, communities issues, people’s life chances and the environment. More over, making the world a better place is a significant part of what social enterprise do. A social enterprise also know their aims and purpose of its business clearly. Most of its income were bring in through selling goods or services. Besides, it will also have clear rules about what to do with its profits, reinvesting for the enterprise’s further “social mission”. Social enterprise can also be separated into two categories which are both for-profit and not-for profit in form. In our general mindset, for-profit enterprise always try to maximise the returns for the investors, while not-for profit companies will usually serve to public good. The biggest difference between a for-profit and not-for profit social enterprise is that the for-profit enterprise has a more attracting capital compare to not-for profit enterprise. Whereas the not-for profit enterprise usually requires certain ongoing fundraising efforts. As in detailed, a business or organisation which set its primary goal is making a profit are so called for-profit enterprise. Nowadays for-profit enterprise are more preferably by most companies because they are focusing on making profit. Does anyone who's not interested in money? Therefore for-profit enterprise is more attractive than not-for profit companies. A for-profit enterprise is meant to be take in more money than it spends. The owners can decide to keep all the profit themselves or they can spend some or all of it on the business itself. Sometimes, they may decide to share the profit they make within the stakeholder or shareholder for example compensation plans and employee profit sharing. On the other hand, the existence of not-profit enterprise is to provide certain services to the community. Nonprofits are generally founded to serve a humanitarian and environmental need. Sometimes these enterprises channel all their income into programs or campaigns and aimed to meet the people’s need for example shelter, food, education, water, all the basic needs to live. Their programs will also lead to environmental issues such as deforestation or endangered species. So basically not-profit enterprise only focus on the goal as helping the community and is concerned with money only as much as necessary to keep itself operating. In addition, there are few factors that a not-for profit enterprise need to achieve in order to be a not-for profit enterprise. The company must have an external partnership to extend into the community. A company that having a volunteer engagement will lead to the community engagement as well. Therefore, the grant and consulting relationships help to create a peer network of support. Besides, a not-for profit enterprise must have a continuous ongoing funding outreach to support counter engagement. Advanced technology will also help in enhancing the engagement of volunteers. For example volunteer e-newsletter helps the volunteers and organisation stay connected.

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