The Value of a Social Enterprise

 

Exploring the avenue's of non-profits versus for-profit organizations is a worthy exercise that may help you determine your purpose for seeking Independent Business Ownership. With today's economy people are seeking ways to provide services that benefit others as well as provide some level of financial security for themselves and their families. However when potential business owners can develop solutions that create better livability for others in their communities, then their level of true leadership has begun to show it's strengths. It really takes a leader with finesse, determination, and focus to start a non-profit/social enterprise instead of a for-profit organization. 

Although emerging markets for non-profits have recently been increasing it takes a very strong leader to take on a non-profit as a career path. Harvard Business School has stated that. "Nonprofit organizations require strong, innovative leadership, especially during uncertain times"  why? Because the supportive services and capital for emerging markets are far and wide in our current economical state. The percentage of private and federal funding for non-profits organizations are far less than those of the for -profit businesses.

The resources available to non-for-profit organization must come from a place of  passion. For instance; the need to restore an economically challenged area in a city, and developing programs to meet the needs of that city in terms of jobs, educational programs, and or solving housing issues; requires a substantial amount of financial support and a leader with gusto, to get these type programs up and running. The funds for these type projects may come from a private entity, governmental agency, an individual or Philanthropist. According to the "Urban Institute" data indicates the amount of financial contribution non-profit organizations have filtered into the economy. The data also indicates the following data for the revenue received by non-profits in 2006 (see the following ).

• In 2006, nonprofits contributed $666.1 billion to the US economy.
• In 2006, nonprofits received $1 trillion in revenue, a 5.7 percent increase over 2005.
• In 2005, 12.9 million people worked for nonprofits, up from 11.1 million in 1998.
• In 2006, wages and salaries totaled $489.4 billion, compared with $318.9 billion in 1998 (not adjusted for inflation).

According to Harvard, "More than 700,000 nonprofits operated in the United States in 2009. Ninety percent of them had annual budgets of less than $500,000, and 99% spent less than $10 million on their constituents. The average grant size for large foundations was only $50,000. 

Fortunately, the US government has many supportive services to provide assistance for non-profit or social enterprises; therefore, with this information and statistics in mind the value of starting a Social Enterprise/ non-profit organization may well be the route to follow if you have  a passion to bring people together and make a change in communities, where you live or even around the world. Go with Gusto and you will succeed.