Community Groups in Business Studies

Definition

Community groups within the third sector are non-profit organizations focused on providing services to people within a local or specific community.

Key Characteristics

• Non-profit: Community groups operate on a non-profit basis, meaning they do not aim to generate financial profit for shareholders or owners.
• Profit Utilization: Any surplus or profit generated by community groups is reinvested into the organization to sustain and improve their services.

Examples of Non-Profit Organisations

• Rugby Clubs: Local rugby clubs often operate as non-profit community organizations, providing sports and recreational activities to their members and the local community.
• Golf Clubs: Similarly, golf clubs can function as community-focused organisations, offering access to golf courses and related activities without a primary profit motive.

Aims and Objectives in Business Studies

In the context of business studies, community groups serve as examples of non-profit organizations that prioritize community service over profit generation.

These organizations aim to:

• Provide valuable services and activities to local communities.
• Reinvest any surplus or profit to sustain and enhance their offerings.
• Demonstrate how non-profit entities can operate efficiently and effectively while benefiting the community.

Understanding community groups in business studies helps students grasp the concept of non-profit organizations, their role in society, and their unique approach to resource allocation and sustainability.