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Question: Distinguish between social enterprise and business enterprise, and critically assess whether it is possible for social entrepreneurs to seek profit maximisation without diluting the ideology of social entrepreneurship.

12 Oct 2022,11:32 PM

 

  1. Distinguish between social enterprise and business enterprise, and critically assess whether it is possible for social entrepreneurs to seek profit maximisation without diluting the ideology of social entrepreneurship. Use real life examples to support your arguments. (1,800 words)
  2. Critically reflect on what you have learned from this module. (400 words). To answer these questions, you will need to refer to academic literature, provide real life examples, and reflect on your learning from the module (e.g. from lectures, seminars, theoretical content, real life examples, teamwork, guest speakers, assessment, etc.).

Expert answer

 

There is a distinction between social enterprise and business enterprise. Social enterprises are businesses that have a primary social or environmental mission. They use business methods to achieve their goals and reinvest their profits back into the business or the community. Businesses, on the other hand, seek to make a profit for their shareholders. While businesses may have social or environmental objectives, their primary goal is to generate financial returns.

 

The distinction between social enterprise and business enterprise is important because it affects how these organizations are structured and operated. Social enterprises are often organized as nonprofits, meaning they do not have shareholders and do not seek to make a profit. Businesses, on the other hand, are typically organized as for-profit entities and seek to generate a return on investment for their shareholders.

 

The distinction between social enterprise and business enterprise is also important because it affects the way these organizations are regulated. Social enterprises are subject to different laws and regulations than businesses. For example, social enterprises may be exempt from some taxes, such as income taxes, that businesses are required to pay.

 

The distinction between social enterprise and business enterprise is also important because it affects the way these organizations are funded. Social enterprises often rely on philanthropic donations, government grants, or impact investing to finance their operations. Businesses, on the other hand, typically generate revenue through the sale of goods or services.

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