The Business profits in the United States

Businesses that Aim to Maximize Profits

Businesses that do not aim to maximize profits definitely have a place in the United States. Today, the United States is still seen as a reasonably prosperous nation, and it does not experience the same level of poverty as nations like Bangladesh. However, as the nation’s income inequality has been steadily rising over the past 30 years (Institute of Policy Studies, 2017), it has led to communities of disadvantaged and impoverished people who lack access to basic resources or are denied opportunities like healthcare, education, housing, and employment. These groups of people require assistance of some type, whether it comes in the form of government-provided public services or support. They can rely on similar support from businesses and other private sector organisations operating as social enterprises. Social enterprises are defined as businesses created to further a social purpose in a financially sustainable way (NESsT, 2017). Most of time, their operating profits are reinvested into the programmes instead of rewarding its shareholders.

Successful Stories of Social Enterprises

Already, there are many social enterprises operating in the United States, with several successful stories. The Women’s Bean Project provides job training for chronically unemployed and impoverished women, and has impacted more than 18,000 women and children so far in Denver, Colorado (Women’s Bean Project, 2017). Poverty & the Arts is another social enterprise that helps homeless people in South Nashville find opportunities through creative outlets, where the artists receive a percentage of commissions from sales of their artwork (Poverty & the Arts, 2017).

Positive Impact on the Environment

Apart from social causes, social enterprise can also have a positive impact on the environment. Carbon Lighthouse helps offices, factories and schools cut their energy bills by helping them improve their energy efficiency, and managing to reduce 76,456 metric tons of carbon thus far (Carbon Lighthouse, 2017). Likewise, Harvest Power is a company that recycles food scraps to produce fertilisers, thus reducing food waste and energy usage from conventional sources (Harvest Power, 2017).

The Need for More Social Enterprises

Social enterprises have proven to be useful model and as most of them are community-driven projects, it offers a sense of shared responsibility amongst its users and beneficiaries. With increasing levels of income inequality and poverty in the United States, and an increasing awareness of climate change and the environment, more social enterprises are needed to help to fill a gap where pure profit-driven companies and pure public service providers lack the commitment and resources to engage.

References

Carbon Lighthouse. (2017). Carbon Lighthouse – About Us. https://www.carbonlighthouse.com/about-us/

Harvest Power. (2017). Harvest Power Website. http://www.harvestpower.com/home/

Institute of Policy Studies. (2017). Inequality.org. http://inequality.org/income-inequality

NESsT. (2017). NESsT Website. http://www.nesst.org/social-enterprise/

Poverty & the Arts. (2017). Poverty & the Arts – Mission & Vision. http://povertyandthearts.org/about-us/mission-and-vision/

Women’s Bean Project. (2017). Women’s Bean Project Website – Earning a Future. https://www.womensbeanproject.com/our-impact/earning-a-future/