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Profit maximization by SEs

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  • annepeters20
    I am having some difficulty coming to terms with some of the thinking out there on SE. In my reading there appears to be a strong focus on SE operating on a
    Message 1 of 1 , Apr 27 5:25 AM
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      I am having some difficulty coming to terms with some of the thinking out there on SE. In my reading there appears to be a strong focus on SE
      operating on a principle of generating surplus/profits as a outcome
      but not necessarily as having this being the main motivator behind the
      activity. My thoughts are: if for example a SE is set up primarily for
      generating profits to finance the operating costs of its parent
      nonprofit organization, it should exhibit the same motivation,
      efficiencies and approaches as a 'regular' for-profit firm. The
      motivator is to GENERATE INCOME/REVENUE! and in doing so the operating
      model should be only different in terms of how the profit is to be
      used. This should open the door to private investors, board
      renumeration etc. Comments please as I am open to some guidance on this issue.

      Anne P.
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