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Deciding on a Type of Startup (Video 9 Part 1)

Course video 17 of 84

In this unit, we will introduce course goals and logistics, then discuss basic concepts and vocabulary related to entrepreneurship.

Welcome to English for Business and Entrepreneurship, a course created by the University of Pennsylvania, and funded by the U.S. Department of State Bureau of Educational and Cultural Affairs, Office of English Language Programs. To enroll in this course for free, click on “Enroll now” and then select "Full Course. No certificate." This course is designed for non-native English speakers who are interested in learning more about the global business economy. In this course, you will learn about topics and language necessary to succeed in the international workplace. You will explore business English through authentic readings and video lectures, while learning about business vocabulary, concepts, and issues. Unit 1 will provide an introduction to entrepreneurship by examining ideas, products, and opportunities. In unit 2, you will learn about the basics of market research, including how to identify an opportunity. The next unit in the course will focus on business plans, why these plans are important, and will give you a chance to practice composing a business plan. In the final unit of the course, we will present basics for funding a business and will help you create a persuasive presentation, or pitch, based on a business plan. Unless otherwise noted, all course materials are available for re-use, repurposing and free distribution under a Creative Commons 4.0 Attribution license. Supplemental reading materials were provided by Newsela, which publishes daily news articles at a level that's just right for each English language learner.

Skills You'll Learn

Business Plan, Market Research, English Language, Entrepreneurship

Taught By

Amy Nichols
Manager of International Research and Program Development
James Riedel
Executive Director

Transcript

Welcome to unit 1 video 9.

Deciding on a type of startup.

When entrepreneurs think of creating a start up,

they must decide what kind of business it will be.

In this video, we will explore three types of business organizations,

for-profit, non-profit, and hybrid.

We will also learn the difference between a company and a corporation.

The term for-profit can be a noun or an adjective.

That means we can say that a business is a for-profit,

where for-profit is used as a noun.

Or we can say, that is a for-profit business,

where for-profit is used as an adjective.

The primary or most important goal of a for-profit business is making money.

Most businesses are for-profit,

some common examples are restaurants, stores, and manufacturers.

The term non-profit can be also be a noun or an adjective.

The primary goal of a non-profit is helping the community.

Making money is also important for non-profits,

because money is needed to support the operation and employees.

But the goal of making money is secondary, or less important, than the primary goal.

For example,

the United Nations Children's Fund has a primary goal of helping children.

Its secondary goal is making money through donations.

The United Nations Children's Fund needs this money to help the children.

But also to pay for employees, offices, and other expenses.

Not for

profit is a newer term that is sometimes used to describe non-profit organizations.

Not for profit has a more general meaning than non-profit.

The term not for profit includes three types of organizations.

Non-profits, charities, and NGO's which are Non Governmental Organizations.

That means we can say that a non-profit is a type of not for profit.

Doctors Without Borders and

The American Red Cross are some examples of non-profits.

For each of these organizations the primary goal is to help local and

global communities.

Like not for profit, the term hybrid organization is also relatively new.

Currently hybrid is mainly used as an adjective

to describe the nouns organization or social venture.

A hybrid organization is a combination of a for-profit and a non-profit.

This means that the organization has two equally important primary goals.

To make money, and to help local or global communities.

Another common term for a hybrid organization, is a social enterprise.

And entrepreneurs, who start hybrid organizations, or

social enterprises, are often called, social entrepreneurs.

Let's look at an example.

Three avocados is a social enterprise that sells coffee and

uses all of its profits to provide clean water and education in Uganda.

Their for-profit goal is to make money by selling coffee.

Their non-profit goal is to provide clean water and education in Uganda.

Because both goals are equally important,

this is a good example of a hybrid, or mixed, organization.

This third type of organization is becoming more popular around the world,

but, because it is so

new, social entrepreneurs may have difficulty attracting funding.

Countries often have laws and regulations or rules about creating new businesses.

When an entrepreneur chooses a type of business for a start-up he or

she has to understand and follow the laws and regulations.

But, those laws and regulations are not the same in every country and

can be very difficult to understand.

Therefore, we will not review any specific laws or regulations in this course.

One thing that is the same across all countries

is the difference between a company and a corporation.

Our guest speaker, professor Philip Nichols

of the Wharton School of Business at the University of Pennsylvania will explain.

His video will be followed by a brief comprehension check.

When entrepreneurs create their startups

they must choose one of three types of businesses.

A for-profit, a non-profit, or a hybrid organization.

Different countries have different laws and regulations for

starting a new business.

But all countries agree on the difference between a company and a corporation.

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