For this chapter, you should be able to...
1. distinguish between THE PRIVATE AND THE PUBLIC SECTORS
2. outline the main features of FOR-PROFIT ORGANIZATIONS
3. outline the main features of FOR-PROFIT SOCIAL ENTERPRISES
4. outline the main features of NON-PROFIT SOCIAL ENTERPRISES
1. distinguish between THE PRIVATE AND THE PUBLIC SECTORS
2. outline the main features of FOR-PROFIT ORGANIZATIONS
3. outline the main features of FOR-PROFIT SOCIAL ENTERPRISES
4. outline the main features of NON-PROFIT SOCIAL ENTERPRISES
1. PRIVATE VS PUBLIC SECTORS
Public sector = ran and owned by the state (e.g. electricity production, common in planned economices)
Private sector = ran and owned by individuals
Private sector = ran and owned by individuals
2. TYPES OF FOR-PROFIT ORGANIZATIONS
1. Sole Traders = owned by only one person.
Advantage:
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Disadvantage:
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2. Partnerships = owned by 2~20 people
Advantage:
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Disadvantage:
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3. Private Limited Company (Ltd.) = separate legal entities from their owners
Advantage:
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Disadvantage:
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4. Public Limited Company (PLC) = often big, multinational companies with large number of employees
Advantage:
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Disadvantage:
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3. types of for-profit social enterprises
For-profit social organizations = run according to business principles but aim to make a profit. However, they do not only aim to maximize profits if doing so compromises their social purpose.
1. Cooperatives = a form of a partnership where the business is owned and run by all the members. (e.g. financial cooperative, housing cooperative, workers' cooperative ...) The priority of cooperatives is not to make profit, but to sell or offer its products or services at as close to cost price as possible.
2. Micro-financier = provides small amounts of finance to those who traditionally would not have access to it (for example low-income individuals) In many low-income economies, individuals with good ideas and a strong work ethic have been able to open their business through micro-finance.
3. Public-private partnerships (PPP) = a business created between a private sector business and the public sector. It typically involves the construction of a facility with a social aim.
1. Cooperatives = a form of a partnership where the business is owned and run by all the members. (e.g. financial cooperative, housing cooperative, workers' cooperative ...) The priority of cooperatives is not to make profit, but to sell or offer its products or services at as close to cost price as possible.
2. Micro-financier = provides small amounts of finance to those who traditionally would not have access to it (for example low-income individuals) In many low-income economies, individuals with good ideas and a strong work ethic have been able to open their business through micro-finance.
3. Public-private partnerships (PPP) = a business created between a private sector business and the public sector. It typically involves the construction of a facility with a social aim.
4. types of non-profit social organizations
Non-profit social organizations = run according to business principles but do not aim to make a profit. Their surpluses from trading may be shared with employees and customers, passed on to a third party and used to buy resources, raise finance, etc.
1. Non-governmental organizations (NGOs) = common way to describe a variety of social enterprises that are not organized or run by any government.
2. Charities = aim to raise money for 'good' causes, and draw attention to the needs of disadvantaged groups of society
3. Pressure groups = circles of people that attempt to influence decision makers in politics, business and society
2. Charities = aim to raise money for 'good' causes, and draw attention to the needs of disadvantaged groups of society
3. Pressure groups = circles of people that attempt to influence decision makers in politics, business and society