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What is the difference between an organization and an enterprise: a practical aspect

Interested in the question, how does the organization differ from the enterprise? Well, let's find out the difference between them together.

In general and general

What do they mean by organization? This is understood as a certain community created by people on the basis of common interests and / or to achieve goals and has signs of governance. Organizations can be created in the most diverse spheres: cultural, social, economic, political, international and so on. If they possess the characteristics of a legal entity, they are subject to state registration. But this is not necessary for all organizations. An enterprise is understood to mean a legal entity that is engaged in manufacturing products, realizing it, providing services and performing various activities. That is, in fact, it is an economic entity. This is how the organization differs from the enterprise. But this is in general terms. Now let's talk about this in more detail.

What is the organization?

Proceeding from the above, one can conclude that it is a broader concept and structure that includes all forms and types of people's unification. Even criminal groups belong to them. This is how the organization differs from the enterprise. While the latter are just one of their species. It should be noted that from his birth to his death, a person participates in various organizational associations. And in this case we do not mean the family, although it is such. So, a person appears in such a medical organization as a maternity hospital. Then he is transferred to a nursery, a kindergarten, a school, a university. He not only studies, but also works, is engaged in creative work, sports and other kinds of activity. Such social structures share responsibilities. Speaking about economic organizations, their peculiarity is the existence of a single leadership and independence. But if we talk about the overall picture, then here you can pay the most attention to several of the most important points.

Specificity of organizations

The fact is that they can be non-formal. The peculiarity in the first case is that there are no registration documents, it is not registered with various authorities. That is, people just gather and act / negotiate / create. Whereas an enterprise is a registered structure. Speaking generally about formal organizations, it should be noted that they are created in a certain order, allowing to effectively influence the people who are part of such a structure. There is also some documentation regulating activities. As such, there may be statutes, rules, regulations and other behavioral norms. There must be leaders who manage the organization. They are appointed or elected. As formal organizations, you can bring the state, political parties, society for the protection of nature, the enterprise. This is all ultimately aimed at satisfying various social demands, which, interestingly, do not have signs of formality. Returning to informal organizations, I would like to note that they, as a rule, are small groups of people who are built on the principle of friendly relations. Important here is trust and a sense of security and confidence.

Enterprise as a kind of organization

Different associations can set themselves different goals. One of them is entrepreneurial activity and obtaining maximum profit. To obtain it, a special organization is created. To distinguish it from other structural formations, it is called an enterprise. Its goal is to maximize the profit generated by the creation of goods and services necessary for society. As a rule, it is economically self-sufficient and has all the necessary property and resources that are necessary for its functioning. Enterprises can be the property of individuals or of various organizations. As the latter can act other companies, the state, municipalities and similar entities. An enterprise is a structure that is bounded by a rigid framework.

So what's the difference?

And now let's summarize and briefly indicate how the organization differs from the enterprise. For this we will make a short list:

  1. The enterprise is a subject of a market economy that deals exclusively with products and services. Whereas an organization can engage in activities that are not related to the economic sector (culture, science, sport, politics, etc.).
  2. An enterprise can not have an informal status. All his activities are based on a certain legal basis. While an organization can be an informal group that acts according to unwritten rules
  3. The head of enterprises and organizations with the status of a legal entity holds its position on the basis of a specific legal act. But informal structures do not require documentation, and the choice of a leader is achieved through the will of its members.

Examples of organizations

Lonely illustrations of what and how were brought within the framework of the article. Let's continue to expand our horizons. So, the subjects of economic activity can take different organizational forms (technical enterprises, limited liability companies) and operate in a strictly defined sector. Whereas associations are present wherever there are at least two people.

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