Interested in the question of how the organization differs from the enterprise? Well, let's find out the difference between the two together.
In general and in general
What is meant by organization? By this we mean a certain community created by people on the basis of common interests and / or to achieve goals and having signs of management. Organizations can be created in various fields: cultural, social, economic, political, international and so on. If they possess the characteristics of a legal entity, then they are subject to state registration. But this is not necessary for all organizations. By a company is meant a legal entity that is engaged in the fact that it produces products, sells it, provides services and performs various work. That is, in fact, it is an economic entity. That's the difference between an organization and an enterprise. But this is a general outline. Now let's talk about this in more detail.
What is an organization?
Based on the above, we can conclude that it is a broader concept and structure, which includes all forms and types of association of people. Even criminal groups belong to them. That's the difference between an organization and an enterprise. Whereas the latter are only 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, it is not the family that is meant, although it is such. So, a person appears in such a medical organization as a maternity hospital. Then he is transferred to a day nursery, kindergarten, school, university. He not only studies, but also works, is engaged in creative work, sports and other activities. Such social structures distribute responsibilities among themselves. If we talk about economic organizations, then their feature is the presence of a single leadership and independence. But if we talk about the general picture, then we can pay the greatest attention to several of the most fundamental 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 / discuss / create. Whereas an enterprise is a necessarily registered structure. Speaking generally about formal organizations, it should be noted that they are created in a certain order, which allows to effectively influence people who are members of such a structure. There is also certain documentation regulating the activity. These may include charters, rules, regulations and other behavioral norms. There must be managers who manage the organization. They are appointed or elected. Formal organizations include the state, political parties, a society for the protection of nature, and an enterprise. This is all ultimately aimed at satisfying various social needs, 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 are trust and a sense of security and confidence.
Enterprise as a type of organization
Different associations can set different goals. One of them is entrepreneurship and maximum profit. A special organization is created to receive it. To distinguish it from other structural units, it is called an enterprise. Its goal is to maximize profits obtained through the creation of goods and services necessary for society. As a rule, it is economically independent and has all the necessary property and resources that are necessary for its functioning. Enterprises may be owned by individuals or various organizations. The latter may be other companies, the state, municipalities and similar entities. An enterprise is a structure that is limited by tight boundaries.
So what is the difference?
Now let's summarize and briefly outline how the organization differs from the enterprise. To do this, make a short list:
- An enterprise is a subject of a market economy that deals exclusively with the production of goods and services. Whereas an organization can engage in activities that are not related to the business sector (culture, science, sports, politics, etc.).
- An enterprise cannot have an informal status. All his activities are based on a specific legal basis. Whereas an organization may be an informal group, which acts according to unwritten rules
- The head of enterprises and organizations with the status of a legal entity occupies his position on the basis of a specific legal act. But informal structures do not require documentation, and the choice of a leader is carried out through the will of its members.
Organization Examples
Lonely illustrations of what and how were cited as part of the article. Let's broaden our horizons to broaden our horizons. So, economic entities can take various 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.