Social venture inherent constitution: It can be commercial or non for profit. The various facets of both of their functioning has been explained belowCertain qualities define the entrepreneur as a subset of business owner. Theorists refer to entrepreneurs alternately as individuals who initiate change and individuals who exploit in-progress change by identifying and seizing opportunities to alter the status quo, despite the risks of early adoption. For profit social ventures improve commercial markets, non for profit improve social conditions. Several other factors further differentiate social ventures both for profit and non for profit.Perceptions of Value

For the commercial business ventures, value lies in the profit the entrepreneur and investors expect to reap as the product establishes itself in a market that can afford to purchase it. The commercial business ventures are accountable to shareholders and other investors for generating these profits. To the non for profit ventures there's also value in profits, as profits are necessary to support the cause. That said value for the non for profit ventures lies in the social benefit to a community or transformation of a community that lacks the resources to fulfill its own needs.Measure of Profitability

The commercial ventures are always designed to turn profits that benefit stakeholders, such as shareholders or private investors. However, non for profit ventures they often structure their organizations as nonprofits, or they donate their profits to the causes they support. NIKA Water, for example, is a for-profit company that sells bottled water. According to "Entrepreneur," 100 percent of the company's profits support clean-water projects in Uganda, Kenya, Sri Lanka and Nicaragua.[footnoteRef:1] [1: http://www.royalgazette.com/article/20130514/BUSINESS05/705149973]

Approach to Wealth Creation

Although the for profit and the non for profit social ventures are similarly motivated to change the status quo, their missions differ significantly. The commercial ventures are driven to innovate within a commercial market, to the ultimate benefit of consumers. If successful, the innovation creates wealth. The venture's success is gauged by how much wealth it creates. To the social entrepreneur, wealth creation is necessary, but not for its own sake. Rather, wealth is simply a tool that they uses to effect social change. The degree to which minds are changed, suffering is alleviated or injustice is reversed represents the organization's success.Sticking to a MissionWhile offering stock to investors is a great perk for for-profit ventures, it can also prove to be a hindrance when it comes to maintaining the companys social mission. As a for-profit venture they are accountable to investors. Nonprofits will have an easier time sticking to their goals. Venture capitalists or private capital investors may be more or less tolerant of your social mission.ScalabilitySince growth is often the goal of for-profit ventures (even those with social missions) such companies are typically better positioned to grow at a faster clip than nonprofits. From the time they draw up the business plan, for-profits have a good idea of what the financial picture will look like from the start-up to the growth phase. They set a target for funding and work until they meet their goal. For-profits tend to raise targeted amounts of significant contributions from angels and venture capitalists at the start. As a result, for-profits can put those funds toward the purchase of facilities, research and development or hiring employees right away rather than adding operations or services little by little, as nonprofits tend to do.Even though for-profits operate at the mercy of market forces (i.e., the cost of materials), once a venture gains momentum it can generally afford to ramp up operations in order to meet demand. Hiring EmployeesWith more funds to work with, for-profits often have an edge over nonprofits when it comes to attracting and retaining highly-valued talent. Nonprofits tend to operate with more modest resources, and usually cant offer similarly high salaries and bonuses.Additionally nonprofits cant provide an equity stake. Many for-profit start-ups will offer new employees ownership stakes in order to offset a low salary. As the for-profit makes money, they wont have to depend on this strategy. But at least it gets talent through the door. Without stock options to dangle as carrots, nonprofits have a much harder time attracting desirable employees.Focusing on CustomersNonprofits can, of course, raise huge amounts of donor funds, but the process of grant writing and finding donor funds is tedious and practically never-ending. Having employees focus on raising funds, as they often must at nonprofits, rather than catering to customers seemed at odds with common business sense. So rather than marketing to donors they are marketing their customers.[footnoteRef:2] [2: http://www.allbusiness.com/starting-up-nonprofit-vs-for-profit-social-ventures-10743648-1.html]

List of for profit and non for profit social ventures For profit Non for profit

SELCO Solar Pvt. Ltd, a social enterprise established in 1995, provides sustainable energy solutions and services to under-served households and businesses. It was conceived in an effort to dispel three myths associated with sustainable technology and the rural sector as a target customer base:

Dasra is Indias leading strategic philanthropy foundation, working with philanthropists and successful social entrepreneurs to bring together knowledge, funding and people as a catalyst for social change. Dasra scales non-profit organizations and social businesses in order to help accelerate change and transform lives.