SNHU For Profit and Not for Profit Businesses Discussion

As you have learned throughout your course of study, leading businesses requires flexibility, insight, and perseverance. The same is true in the not-for-profit business sector. Learning more about this sector and how it differs from the for-profit sector will hone your skills and set you up for success in the remainder of the course. 

For the Module One discussion, please address the following:

Based on the Module One readings and your personal experience, identify two similarities and two differences between the for-profit business sector and the not-for-profit business sector.

Support your responses with examples, and cite your sources when necessary.

• In your responses to your peers, explain why you believe the similarities and differences they identified are necessary when distinguishing the sectors from each other.

Peer 1:

My name is Brittany, I’m 27 and I live in Pennsylvania. I have my bachelor’s degree in biology and am currently working on my master’s in health administration. I currently work as a medical technologist in microbiology in New Jersey. I’ve been working in a lab for almost three years now, there were a few months where I worked in PCR running covid testing when I came to my current company but decided to come back to the micro department because I really enjoy the work. I am also amidst planning my wedding in September, so free time is a rarity for me, but it will 100% be worth it in the end.

I have learned a little about nonprofit and for-profit organizations in previous classes so have some knowledge, which makes this week’s discussion a little easier research wise. For-profit and nonprofit have some similarities and distinct differences.

Both have goals they try to meet, as well as mission and vision statements. Both organizations make money to work, and they focus on patient care and serving the community.

Nonprofits tend to be smaller than for-profit organizations and rely on the support od donors rather than the patients payments (Worth, 2018). Nonprofit organizations also qualify for tax-exemptions while for-profit organizations do not.

Peer 2:

My name is Jon Platon and I am a candidate for the Master of Science in Organizational Leadership degree, my second masters. I also hold an MBA from Purdue University, and an undergraduate degree from UMass Boston. I am a husband and father, have served in the U.S. Army, and in various industries including financial services, retail, manufacturing, and banking. Currently, I am a project manager in operations management consulting, serving clients typically in the food-grade manufacturing and other commercial/industrial industries.

In my experience, the similarities between for-profit, private sector businesses and not-for-profit entities are the existence of hierarchies. Both types of organizations still require a leadership structure for command and control purposes, accountability and reporting, and for leading, motivating, providing direction to their teams. Another similarity, in most cases, is the need for growth. Private sector firms typically have growth in their strategies, and not-for-profit organizations are delighted with growth in order to maintain their existence and relevance.

Differences are in intents and purposes. That is, the for-profit business wants to make money for its owners and key stakeholders. The not-for-profit entity is concerned with the welfare of its intended constituents, whether it be its members or the community or group it aims to serve. This is an important distinction in the ways each sector strives to gain funds and the uses of those funds. Another distinction is the taxation obligation. For-profit firms pay taxes, whereas not-for-profit are exempt (IRS, n.d.).

Furthermore, not-for-profit organizations are classified by mission and intent: they are grouped as social welfare organizations, private foundations, public charities, and other tax-exempt organizations such as agriculture, labor organizations, and business leagues such as chambers of commerce (Worth, 2018).