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Social venture inherent constitution:

It can be commercial or non for profit. The various facets of both of their functioning has
been explained below

Certain qualities define the entrepreneur as a subset of business owner. Theorists refer
to entrepreneurs alternately as individuals who initiate change and individuals who
exploit in-progress change by identifying and seizing opportunities to alter the status
quo, despite the risks of early adoption. For profit social ventures improve commercial
markets, non for profit improve social conditions. Several other factors further
differentiate social ventures both for profit and non for profit.
Perceptions of Value
For the commercial business ventures, value lies in the profit the entrepreneur and
investors expect to reap as the product establishes itself in a market that can afford to
purchase it. The commercial business ventures are accountable to shareholders and
other investors for generating these profits. To the non for profit ventures there's also
value in profits, as profits are necessary to support the cause. That said value for the non
for profit ventures lies in the social benefit to a community or transformation of a
community that lacks the resources to fulfill its own needs.
Measure of Profitability
The commercial ventures are always designed to turn profits that benefit stakeholders,
such as shareholders or private investors. However, non for profit ventures they often
structure their organizations as nonprofits, or they donate their profits to the causes
they support. NIKA Water, for example, is a for-profit company that sells bottled water.
According to "Entrepreneur," 100 percent of the company's profits support clean-water
projects in Uganda, Kenya, Sri Lanka and Nicaragua. 1
Approach to Wealth Creation
Although the for profit and the non for profit social ventures are similarly motivated to
change the status quo, their missions differ significantly. The commercial ventures are
driven to innovate within a commercial market, to the ultimate benefit of consumers. If
successful, the innovation creates wealth. The venture's success is gauged by how much
wealth it creates. To the social entrepreneur, wealth creation is necessary, but not for its
own sake. Rather, wealth is simply a tool that they uses to effect social change. The
degree to which minds are changed, suffering is alleviated or injustice is reversed
represents the organization's success.
1 http://www.royalgazette.com/article/20130514/BUSINESS05/705149973

Sticking to a Mission
While offering stock to investors is a great perk for for-profit ventures, it can also prove
to be a hindrance when it comes to maintaining the companys social mission. As a forprofit venture they are accountable to investors. Nonprofits will have an easier time
sticking to their goals. Venture capitalists or private capital investors may be more or
less tolerant of your social mission.
Scalability
Since growth is often the goal of for-profit ventures (even those with social missions)
such companies are typically better positioned to grow at a faster clip than nonprofits.
From the time they draw up the business plan, for-profits have a good idea of what the
financial picture will look like from the start-up to the growth phase. They set a target
for funding and work until they meet their goal.
For-profits tend to raise targeted amounts of significant contributions from angels and
venture capitalists at the start. As a result, for-profits can put those funds toward the
purchase of facilities, research and development or hiring employees right away rather
than adding operations or services little by little, as nonprofits tend to do.
Even though for-profits operate at the mercy of market forces (i.e., the cost of
materials), once a venture gains momentum it can generally afford to ramp up
operations in order to meet demand.
Hiring Employees
With more funds to work with, for-profits often have an edge over nonprofits when it
comes to attracting and retaining highly-valued talent. Nonprofits tend to operate with
more modest resources, and usually cant offer similarly high salaries and bonuses.
Additionally nonprofits cant provide an equity stake. Many for-profit start-ups will offer
new employees ownership stakes in order to offset a low salary. As the for-profit makes
money, they wont have to depend on this strategy. But at least it gets talent through the
door. Without stock options to dangle as carrots, nonprofits have a much harder time
attracting desirable employees.
Focusing on Customers
Nonprofits can, of course, raise huge amounts of donor funds, but the process of grant
writing and finding donor funds is tedious and practically never-ending. Having
employees focus on raising funds, as they often must at nonprofits, rather than catering

to customers seemed at odds with common business sense. So rather than marketing to
donors they are marketing their customers.2

List of for profit and non for profit social ventures


For profit
SELCO Solar Pvt. Ltd, a social enterprise
established in 1995, provides sustainable
energy solutions and services to underserved households and businesses. It was
conceived in an effort to dispel three
myths associated with sustainable
technology and the rural sector as a
target customer base:

Non for profit


Dasra is Indias leading strategic
philanthropy foundation, working with
philanthropists and successful social
entrepreneurs
to
bring
together
knowledge, funding and people as a
catalyst for social change. Dasra scales
non-profit organizations and social
businesses in order to help accelerate
change and transform lives.

2 http://www.allbusiness.com/starting-up-nonprofit-vs-for-profit-social-ventures10743648-1.html