When starting a new venture, entrepreneurs face a number of choices. These range from picking the right name to selecting the right talent to join the team. These questions are critical and should be addressed with the utmost care and deliberation, as they can make or break a business. One other choice faced by an entrepreneur that wants to offer a product or service and make a difference is whether to create a non-profit or for-profit. This is a choice especially difficult for social entrepreneurs – people that want to combine profit and purpose.
While it’s worth thinking about because of the legal distinctions and consequences of selecting either, the choice between for-profit and non-profit is not as important as it used to be as more non-profits generate income from business activities that go back to support the core charitable programs, and for-profits build giving back into their corporate mission.