Nonprofit vs. For-Profit Social Ventures : Social entrepreneurs usually lean toward nonprofit, but there are pros and cons to consider.
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WHEN STARTING UP any business, there are obviously countless things to consider: Do I need a <a id="kw0" href="javascript:rp.t_onC(159);">business plan? Should I <a id="kw3" href="javascript:rp.t_onC(155);">work from home or lease office space? How will I reach prospective customers? But when you're launching a social enterprise, one more quandary needs to be added to the list: Do I set up shop as a nonprofit or a for-profit?
For Ned Tozun and his business partner Sam Goldman, who last year launched D.light Design, a New Delhi-based social venture that sells inexpensive lighting and power technologies in developing countries, that decision was pretty clear. "We felt like the only way to create a sustainable and scalable solution to the problem we aim to solve was via a commercial model," Tozun says.
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