Most of the time, people mistaken social enterprise as charitable entity. It is not.
One of the very obvious differentiation between social enterprise and non-profit organizations is the sustainability model and ability to make profit for at least self-sustain purpose.
Non-profit organizations sustain on donations or grants, where no recovery of invested capital is one of the characteristics of money being put into the entity. There are no profit consideration for the money being channeled into the organization. The money is solely being used for the social causes. From another perspective, the survival of non-profit organizations solely at the mercy of donors or grant givers. This has become main challenges for most of the charitable organizations around the world.
Social Enterprise is Not Charity
If you had read through what is social enterprise from our perspective, you would understand that social enterprise sits between the traditional business and charity.
The quadrant diagram from ourgoodbrands.com will let us understand social enterprise from another perspective.
So, if social enterprise is not a charity, does it make money?
Excerpt from “Every Achievement Counts” book project , part of transcript for presentation:
