For some, the reason for starting a business is to improve the lives or welfare of others in their community or society at large. Whilst still profitable, the primary aim goes beyond commercialism or financial gain.
Businesses are commercial entities. By design, they are created to fulfill a need in the marketplace. To satisfy the demand of customers.
In some cases, the purpose for which the business was started is merely to plug a gap in the market. To provide a product or service that other businesses haven’t sufficiently matched.
And in other cases, a leading purpose for the business could be to improve the lives or welfare of a community or society.
This doesn’t necessarily mean that such a business is defined as a charity or a philanthropic endeavour. But rather, it has characteristics focused on addressing a social need. But again, this doesn’t have to be the primary purpose or mission.
Example
Neighbourhood cafe
An entrepreneur might have the idea to start a local neighbourhood cafe. As a business, its survival will depend on its profitability.
However, the business owner’s main aim in starting the cafe was to:
“…provide the community with a warm place for relatively socially inactive or isolated neighbours (like certain among the elderly, for example) to meet and greet one another.”
Also, this business owner intends to hire and train particularly financially disadvantaged locals, to run the business. Using the business as a vehicle for promoting socio-economic stability.