Similarities and Differences between Social and Business Enterprise

SOCIAL AND BUSINESS ENTERPRISES
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Part A
Distinguish between Social Enterprise and Business Enterprise
A social enterprise refers to an organization with specific social goals that serve its main purpose. The organization puts the interest of people and the environment before the shareholder. The main aim of social enterprises is to generate revenue while promoting the community and the surrounding. Also, the enterprises’ revenue is mainly used to promote social programs. The social enterprise concept was created in the United Kingdom during the 1970s to oppose the standard commercial enterprise (Barone, 2020). The idea seeks to balance operations that offer financial rewards with social objectives like housing for needy people or job training. Funding is acquired by selling products and services to customers, while other funds come from grants. Social enterprise operations are different from standard company operations since profit maximization is not the main aim. However, revenue from social enterprises plays a crucial role in ensuring venture sustainability. Social enterprises are differentiated from traditional charity that depends on outside funding to execute their activities by sustainable revenue (SEUK, 2019). However, the goal does not imply that social enterprises cannot profit. Instead, it states that their preference is to reinvest in social missions instead of distributing the funds to shareholders.
On the other hand, a business enterprise provides goods and services to make profits. The term applies to any organization whose main objective is income generation through selling products and services. Also, business enterprise refers to the ability of an individual to identify a business opportunity and create a business. Business enterprises are large corporations and any profit-generating activities that sell to customers. For instance, a person who sets up a roadside lemonade stand with the objective of gaining profits from the activity is considered an enterprise operator (Woodward, 2019). The same scenario applies to a person running a small bookshop to profit. Organizations providing services such as companies providing telecommunications services and institutions providing outsourcing and courier services are also categorized as business enterprises.
Business enterprises must obtain licenses to operate within a specific local community. Licenses are mandatory requirements for every commercial enterprise to create a business location for customers to buy goods and services freely. Also, the enterprise must possess a business license if their operations include sales of offices in the region or other revenue-generating activities (Woodward, 2019). While setting up a business enterprise, contacting municipal officials to enquire about the compliance required for running a business in a certain region is crucial since rules relating to business operations vary from one administration to another.
Social enterprises are classified into four categories even though they continuously grow and might change due to new areas. Each social enterprise category operates by integrating profit maximization and attaining social objectives. The types include t...