The word first appeared in the French dictionary entitled Dictionnaire Universel de Commerce compiled by Jacques des Bruslons and published in Cantillon considered the entrepreneur to be a risk taker who deliberately allocates resources to exploit opportunities in order to maximize the financial return.
Jump to navigation Jump to search This article is about a business with a social objective. For organization designed around social tools, social media, and social networks, see social business model. This article includes a list of referencesbut its sources remain unclear because it has insufficient inline citations.
Please help to improve this article by introducing more precise citations. Created and designed to address a social problem A non-loss, non-dividend company, i. Unlike a profit-maximizing business, the prime aim of a social business is not to maximize profits although generating profits is desired.
Furthermore, business owners are not receiving any dividend out of the business profits, if any. On the other hand, unlike a non-profit, a social business is not dependent on donations or on private or public grants to survive and to operate, because, as any other business, it is self-sustainable.
Furthermore, unlike a non-profitwhere funds are spent only once on the field, funds in a social business are invested to increase and improve the business' operations on the field on an indefinite basis.
Selfishly, people do seek profit through business; however, social business is also based on the latter motive people by performing philanthropic services, like establishing churches, mosques, synagogues, art museums, public parks, health clinics or community centers.
For Yunus, the profits made through a social business's operations are less important than the beneficial effects it has on society. Business objective will be to overcome poverty, or one or more problems such as education, health, technology access, and environment which threaten people and society; not profit maximization.
Financial and economic sustainability Investors get back their investment amount only. No dividend is given beyond investment money When investment amount is paid back, company profit stays with the company for expansion and improvement Gender sensitive and environmentally conscious Workforce gets market wage with better working conditions Do it with joy.Read Articles about Entrepreneurship- HBS Working Knowledge: The latest business management research and ideas from HBS faculty.
Business and Management Research in small businesses and entrepreneurship has evolved so much that studies in these areas are outdated as a result of globalisation and constant advances in technology. Steps.
Business planning for a start-up venture or an established company does not have to be complicated. You start by describing your products and services in relationship to those of competitors. Whenever a business enterprise is established, it either explicitly or implicitly employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it employs.
We support America's small businesses. The SBA connects entrepreneurs with lenders and funding to help them plan, start and grow their business. Social business was defined by Nobel Peace Prize laureate Professor Muhammad Yunus and is described in his books..
In these books, Yunus defined a social business as a business: Created and designed to address a social problem; A non-loss, non-dividend company, i.e.