Non-profit organizations and social enterprises that wish to design sustainability strategies need to have clarity around the concepts of income generation and profit, and how to achieve them.
This article aims to debunk some misconceptions around income generation, equity investments, loan finance, and the profits or surpluses that these organizations may generate or receive.
It explains that income and profit emerges from how an organization transacts with its customers. This approach will require organizations to learn new skills, practice new habits and adopt a different mindset. Although embarking on this process may feel intimidating at first, the benefits of being in a stronger strategic and financial position should make it worthwhile.