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Profit motivated businesses and non-profit businesses have many key aspects and
elements that set them apart, these range from ownership & finances, how the day
to day operations are ran, their employees and how they are paid. Non-profit
businesses serve to solve or endorse certain social problems by providing either a
service or a product where as a profit business main mandate is to generate income
regardless of social problems. The way these two businesses operate finances are
also different due to legislation, Non-profit businesses belong to no sole owner but
rather to the public therefore dividends are not paid out. A for profit business typically
looks to increase its revenue as much as possible as they see profits as a measure
of success, these profits are then split amongst its shareholders. Some non-profits
are obliged to a tax exemption whereas for profit businesses are obligated to pay
taxes. (fritz, 2019)
Taking a deeper dive into both business models I have noticed a pattern amongst
non-profit businesses or 501©(3) organizations as they are known, They are either
charitable non-profit , public non-profit or just charity. A good example of a public
NGO is Rays of Hope who work with the Alexandra community to bring hope through
equipping & nurturing programs. Donate equipment, funds or skills to move the
community from vulnerable to independent. The people who work for these
companies are normally volunteers but some of them are quid pro quos who receive
incentives. These companies have to go through lengthy admin before they are
considered to qualify for tax exemptions. The organization must have one or two
mandates either charitable, Religious, Educational, Scientific, Literary, fostering
amateur sports competition etc. The IRS have cited a few goals like the relief of the
poor, advancement of religion, advancement of education or science & lessening of
government burdens as a few goals, organizations must prove to be established and
organized enough to meet these goals if they are to qualify for tax exemptions.
NGO’s do however generate revenue but the disadvantage is this revenue is then
reinvested into the business after all quid pro quos are paid off. In the case where an
NGO makes more money than they spend or they make money from services or
products unrelated to the mandate they will be taxed or charged penalties so they
are limited to unrelated income. (fritz, 2020)
With way less legislation and admin Profit Driven businesses have very easy entry
points, I have noticed two different types of Profit businesses namely Private
Companies and Public Companies. They slightly differ in their business modules but
their mandate remains the same, that being to maximise their profits from the sale of
a product or a service. This is a key element that indicates if the company is a
success or not. In a public company stocks are made available for purchase by the
general public and it is of importance for the company to pay back all investors and
all stakeholders involved as well as generate enough money to reinvest in or expand
the business. A perfect example of a global public company is global tech innovators
Apple. In a private company the key difference is that its shares cannot be sold
publicly, only way to buy these shares is directly from a stakeholder who is in
agreeance. A perfect example of a private company is Deloitte, an international
accounting firm. The entry point for both public and private companies is easy
however a major disadvantage lies within the competitive nature of the general

market as companies fight for market shares by offering cheaper products or
services compared to their direct competitors. (market business news, 2020)
By comparison I do think that it all comes down to the objectives of the set given
organization when choosing if they should go towards being a profit driven venture or
a social problem-solving venture. Both these modules are sustainable and offer
equal benefits and challenges as I mentioned earlier.