Unprofitable Meaning: Definition, Examples, and Translations
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unprofitable
[สnหprษfษชtษbl ]
Definition
financial situation
Unprofitable refers to a condition or state in which an entity fails to generate a profit or gain from its operations or endeavors. This situation may arise in businesses that face high costs, low sales, or unfavorable market conditions. Firms identified as unprofitable may need to reassess their strategy or operations to return to profitability. Being unprofitable for an extended period can lead to significant financial strain and possibly result in bankruptcy or closure.
Synonyms
loss-making, unproductive, unrewarding.
Examples of usage
- The startup remained unprofitable for three consecutive years.
- Investors are worried about the unprofitable nature of the venture.
- Many unprofitable companies struggle to attract funding.
Translations
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Interesting Facts
Economics
- A business can become unprofitable due to high costs, poor management, or lack of customer interest.
- Sometimes, companies operate unprofitably for a while, hoping to gain future profits by investing in growth.
Business Strategy
- Identifying unprofitable products helps companies streamline their offerings and focus on what works.
- Nonprofits often operate under a model that could be seen as unprofitable since they prioritize social impact over financial gain.
Psychology
- People often feel frustrated or discouraged when faced with unprofitable enterprises, impacting their mental health.
- The fear of unprofitability can lead to risk-averse behavior in entrepreneurs, making them hesitant to invest.
Case Studies
- Many tech startups initially operate unprofitably as they prioritize building a user base over immediate profits.
- Famous companies like Amazon reported many years of unprofitability before turning into highly lucrative businesses.
Origin of 'unprofitable'
Main points about word origin
- The word comes from 'profit', which originated from the Latin 'proficere', meaning 'to advance or to make progress'.
- The prefix 'un-' indicates negation, turning 'profitable' into something that does not bring profit.
The word 'unprofitable' is derived from the prefix 'un-', which comes from Old English 'un-', meaning 'not', and the root word 'profitable', which is traceable to the Latin 'profitable' derived from 'pro' meaning 'for' and 'facere' meaning 'to make'. The usage of 'unprofitable' in English can be traced back to the mid-19th century, as debates around business and economics began to develop more significantly during this period. As industries grew, the distinction between profitable and unprofitable ventures became critical, leading to an increasing frequency of its use in financial discussions and literature. The term highlights the duality inherent in businessโwhere success is measured not just by revenue but also by the costs incurred, influencing strategic decision-making in various enterprises.