Relationship between for-profit and the not-for-profit world


Scenario/synopsis

A nongovernmental organization (NGO) can take on many different roles and purposes. It is typically a not-for-profit organization that commonly starts in a place where there is a great need the NGOs services. At its earliest stages, it is a relief organization, such as OXFAM International, which is a confederation of independent community-based organizations serving the poor in more than 100 countries.

In later development stages, an NGO may become a political lobbyist or a model for business development. AMMANET is a research group that looks at coordinating efforts to improve crop production in Africa. Their research could become the door opener for a startup company.

An NGO could become self-reliant and in effect become a business without the need for grants. Many micro credit-financing efforts have started on a single loan and turned into a bank. Witness the recent Nobel peace prizewinner, Muhammad Yunus, who initiated a project in 1976 by granting a collateral-free loan of nine dollars to help a woman build a business in Bangladesh. Today that effort has evolved into the Grameen Foundation and Bank, which has almost seven million borrowers and over 2,000 branches and claims a 98 percent repayment rate.

Your challenge in this debate is to consider the relationship between for-profit and the not-for-profit worlds. Is an NGO a good way to open a business in a country that is not your own?

Do not forget the cultural issues. Would Muhammad have been as successful if his first loan was to woman in the U.S.? You may want to read more about his partnerships with technology. Consider consulting the internet for further resources.

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Other Management: Relationship between for-profit and the not-for-profit world
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