Types of enterprise and their role in society

Types of enterprise and their role in society

Organisations • An enterprise, otherwise known as an organisation is a group of people who come together to provide a good or service • Enterprises can be categorised as for profit or not for profit

For profit enterprise • Aim to provide a good or service to make a profit • E. g. banks, restaurants, newsagents, fast food outlets etc • They have a single purpose or bottom line – make a profit

Not for profit • Aim to provide a service for others; they are run by people who are interested in meeting the needs of people in society • Any profit made is put back into the business • E. g. education, health, social services, sports clubs etc – Serve people – Protect the planet – Make a profit

Sole trader

Private limited companies

Co-operatives A co-operative is owned and run by its members e. g Longford credit union Ltd and Rabobank, Galway Taxi Co-op Society Ltd

Credit Union • A credit union is an example of a financial cooperative that brings together people with a common bond (due to working together or living in the same area).

Comparison of sole traders, LTDs and co-operatives • See table page 169

Financial, cultural and social enterprises

Financial enterprise • Financial enterprise assists the social entrepreneurial endeavours of many nongovernment organisations, non-profits and community and voluntary organisations. • E. g WESTBIS – assists enterprises in the Border, Midland Western regions of Ireland with finance

Cultural Enterprises • These are creative businesses that promote culture and the arts. – Create employment – Provide entertainment – Help attract foreign tourists

Social enterprise • These are businesses that use entrepreneurial methods to tackle social, economic and environmental issues