A-Level AQA Business Revision Unit 1(Part 9) : Not-For-Profit Businesses

Social Enterprise Organisation - A type of business that has social aims which are more beneficial/important than making profit

A SEO is a type of business that tries to help society, the environment, charity and many other causes. They do this by selling goods and services in order to generate profit which is either donated, reinvested into the business' projects, or reinvested in the business itself. This means they are not-for-profit because the profits are not given to the owners as bonuses.

Why become a SEO:

- Entrepeneurs can earn a living doing something valuable and beneficial to the community and society as a whole

- Easier to recruit, motivate and retain employees for a social enterprise

- The success of the social enterprise - to society - can help the entrepeneur's life

- Customers may be more willing to buy from a SEO instead of a profit organisation

- Access to grants or other forms of finance

However:

- Profits and social aims may conflict, leading to difficult choices and decisions

- There will always be a lower return as the profits gained go back into the business