While businesses have worked for hundreds of years to improve quality and reduce costs, the social sector has failed to make similar improvements in programs such as education or welfare, says Bill Drayton, founder and CEO of Ashoka, the world's oldest support organization for social entrepreneurs.
Consumers frequently stereotype nonprofits as warm, generous and caring organizations, but assume their business abilities will be less competent than their for-profit peers’. In contrast, for-profit companies are stereotyped  as more competent with a balance sheet, but are not necessarily socially aware. Understanding these views can affect how both groups do business.