1.1. "To provide small accounts of finance to individuals who traditionally would not have access to it." Examples of individuals in need of micro-finance include families in rural communities and low-income individuals
1.2. Advantages: Loan amounts are small and interest rates are low, so it is a win-win for both sides Micro-finance has bailed many low-income communities out of hardships
1.3. Disadvantages: The loaner may sometimes not get paid back as the individual/community that he or she donated to could not recuperate.
2. Non-Governmental Organizations/Charities
2.1. "Refers to any private sector organization that does not primarily aim to make a profit." Examples include UNICEF and Dubai Cares. Charities, as opposed to NGOs, can be owned by a government and can thus further their support.
2.2. Advantages: Usually supports ethical causes Society's values are at play here Charities don't have to pay taxes since they are owned by the government (e.g. Dubai Cares)
2.3. Disadvantages: NGOs have to pay taxes Very easy for corruption to occur Funding can be irregular
3. Cooperatives
3.1. Provides improvements to social, human, environmental well-being for societies. Growth and maximizing profits are main goals. Also, every member of a coop has an equal amount of ownership.
3.2. Advantages: Easy to start Inexpensive
3.3. Disadvantages: Can fail very easily
4. Public-private Partnership (PPP)
4.1. A business created between the public (government-owned) and private (individual/NGO-owned) sector. Typically involves construction of a facility with a social aim e.g. Hospitals, schools etc.
4.2. Advantages: Private company can attain favorable legal status Strong communal identity for private company Large amounts of publicity and profit for private company Benefits to stakeholder community
4.3. Decision-making can be time-consuming and complex There may be insufficient capital for growth
5. Private-limited company
5.1. A business whose stock are not sold to the public, and are only available to its shareholders, who are usually relatives or friends of the owners (or the owners themselves)
5.2. Advantages: Limited liability Easy to set up Can be started by anyone Individuals themselves can't be sued
5.3. Disadvantages: Former owner loses some capital due to shareholder involvement Don't have as much capital as Public-limited companies
6. Public-limited Companies
6.1. Public-limited Companies are companies that can be traded on the stock market, and thus be sold to the public (hence the name). Examples include Google, Microsoft and Apple.
6.2. Advantages: Investors only lose what they invested in the company if it were to lose money. "Going Public" usually leads to much more capital for a company Selling stock is much easier
6.3. Disadvantages: Owners have less control of the business If a PLC fails, then the losses are much higher than that of a private limited company due to its size
7. Partnerships
7.1. A Business/Organization formed by 2-20 people. Examples usually include Law firms and clinics. The partners jointly make all decisions, though some partners may be sleeping partners and thus don't need to. Profits also are not always shared equally
7.2. Advantages: More efficient production due to more people and thus more skills and abilities Two heads are better than one More stable More chance of continuity because there are several partners
7.3. Disadvantages: Unlimited liability Have less access to loans than major corporations No individual partner can have complete control over the business Disagreement between partners could potentially break business up
8. Sole Traders
8.1. Sole owner runs the business. Usually profit-based and time-consuming. Finance used to start these small business up usually come from family/friends. Examples include the neighborhood mom-and-pop coffee shop
8.2. Advantages: All profits go to sole trader Complete control over everything Own working hours can be set Be your own boss Privacy Minimal legalities Close relationship with customers can give a competitive edge
8.3. Disadvantages: Very fragile business, as if trader dies, loses interest, or is unwell, the business can be shut down Competing against larger establishments is daunting and hard Unlimited liability Limited capital Limited opportunities to expand if he or she is unwilling to add partners
