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One of the great joys of making a profit has been giving to causes and needs that tug on my heart strings. Please help me understand the logic of how operating
by ryanmarsh 6y ago
One of the great joys of making a profit has been giving to causes and needs that tug on my heart strings. Please help me understand the logic of how operating a business at a loss (eschewing profits) has a greater impact than having money to put towards said impact.
Ex. Bill Gates
- njb311 6y agoA ‘not-for-profit’ does not mean it doesn’t make a profit. It means that profits generated are used to further the purpose of the organisation and not, for example, for shareholder enrichment. A loss-making organisation could only be sustainable if it was receiving grants or donations, in which case it is more likely to be a charity than NFP.
- ryanmarsh 6y agoOP said “social entrepreneur” placing “social impact over profit”. That’s not a charity it’s a weak business.
- njb311 6y agoMeaning that social impact is prioritised over profit. There’s still no constraint on making profit, and there is the same potential to be financially successful. Many, if not most, businesses aim to make profit regardless of their social impacts — they’ve probably never even thought about what they are. It’s easy to say that employing people and giving them a salary is the most useful social impact a business can (or should) have, but when you factor in negative externalities that may not be true. A social entrepreneur actively aims to make a positive social impact. It’s not about it being a weak business or a charity.