IGCSE/GCSE/O & A Level/IB/University Student Forum

Qualification => Subject Doubts => GCE AS & A2 Level => Commerce => Topic started by: ~cornelia~ on September 14, 2011, 05:39:27 pm

Title: business doubt!
Post by: ~cornelia~ on September 14, 2011, 05:39:27 pm

so whats the difference between social enterprises and charities??

i dont get it please give me some helpful examples.. :'(

Title: Re: business doubt!
Post by: Tohru Kyo Sohma on September 14, 2011, 08:27:51 pm

Social enterprise are businesses with mainly social objectives that reinvests most of its profits into the business into benefiting the society rather than maximizing returns to owner!but they will also keep some profits to themselves.they are profitable organizations.
Charaties are NON-profitable organizations that does not issue stock shares or distribute its surplus funds to owners or shareholders, but instead uses the funds to help achieve its goals.
the main difference is that a social enterprise is a profitable organization and charity is non-profitable!
u can see an explanation here too;
http://www.charityinsight.com/features/strategy/what-is-the-difference-between-charity-and-social-enterprise_11_05_2011