Perspective 1: Why run a social enterprise as a business?
Perspective 1 of 3
As a non-profit social enterprise, we:
- Do not have to pay taxes (VAT, profit, social insurance, retirement, withholding on employees)
- Do not have to abide by prevailing industry/regulatory standards (i.e. costly independent product label registration and nutrition testing)
- Can operate under the radar and evade the worst of corruption (i.e. market controller)
- Can depend on donations to supplement poor performance or shortfalls (e.g. more understanding “investors”)
- Obtain visas and other employment paperwork (or neglect it completely) more easily than other businesses
- Our status as a non-profit can better assure stakeholders (donors) that our social mission is a crucial component of our business
All in all, that gives a non-profit social enterprise a healthy competitive edge in the marketplace. Why wouldn’t we choose to register as a non-profit?
~ by responsiblenomad on March 19, 2011.