Similarly, I would expect a great deal of for-profits to make things no one wants and burn a lot of capital in the process of going out of business, though that may not be a majority of the for-profits started by your average EA.
There are strong reasons to believe that profitable companies are producing goods or services that people want (which is not to say they are morally worthwhile). In most cases, the end user will simply not pay if the service they provide is bad. This just isn’t true in non-profits. I don’t think being an EA changes the calculus very much on the for-profit side, but importantly for profits have a strong kill function.
Similarly, I would expect a great deal of for-profits to make things no one wants and burn a lot of capital in the process of going out of business, though that may not be a majority of the for-profits started by your average EA.
There are strong reasons to believe that profitable companies are producing goods or services that people want (which is not to say they are morally worthwhile). In most cases, the end user will simply not pay if the service they provide is bad. This just isn’t true in non-profits. I don’t think being an EA changes the calculus very much on the for-profit side, but importantly for profits have a strong kill function.