1.

2 TYPES OF
BUSINESS
ENTITIES
Ali Fakhroo, Wasna
Osama , Sami Awdi
For-profit social enterprises and Non-profit social enterprises
Non-profit social enterprises are businesses that are Profit social enterprises are businesses that are
ran in a commercial type manner but without profit focused on making profits by selling a profit or
being their main goal. They instead use their surplus service.
revenues to achieve their social goals.
Examples include:
Examples include: ● Retail stores
● Public libraries ● Restaurants
● Government hospitals
● Government school
Disadvantages
For profit: Non-profit

● Unable to receive grants and tax ● Limitations in revenue

reductions to donor ● No ability to take investments
● Fees/costs: the government ● Lack of funds
issues a one time fee for starting
a for profit business
Advantages
Profit social enterprises: Non profit social enterprises:

● Ability to Take in Investments

● Stronger Customer and Client Relationships
● No Limits on Revenue Generation
● Greater Employee Motivation and Retention
● No Ability to Receive Grants or Offer Tax
● Increased Creativity
Deduction to Donors
● Increased Productivity
● Ability to Receive Grants and Offer Tax Deduction
● Enhance Brand Awareness and Reputation
to Donors
● Limit on Revenue Generation.