Every social organization exists to fill in a gap and solve a problem. In the social sector, the goal is more of making positive impact than making profits. In this social space, there exist two kinds of organizations that are usually interchanged. They are the “nongovernmental organization, NGO” and the “social enterprise”.
Even though NGOs and social enterprise both function to identify a problem, provide solution to that problem and make positive impact, their structure and mode of operation differs. A striking difference between these two is that while a social enterprise uses a business model to solve a problem, NGOs have no business model. Instead, they operate by funds generated from donations, grants or sponsors.
Through the business model, social enterprise makes profit that is invested back into the enterprise for social work. On the other hand, NGOs cannot make profits. Essentially, a social enterprise may be seen as a business but as one that exist to solve a social problem.
Define your organization today and get ready the necessary registration for that organization.