What is profit – more than the difference between revenues and costs? Today, when profits in welfare are debated, this question is hot. Last Thursday, May 21, the Center for Business History organized a lively panel debate at Stockholm Chamber of Commerce that turned the concept of profit inside out.

"Where does the concept of profit belong," asked moderator Cecilia Stegö Chilò, "should it exist in research and culture or is profit only meant for the economy?" For entrepreneur and financier Olof Stenhammar, profit is a key to risk-taking, and thus to innovation. At the same time, he believes that few entrepreneurs are driven by expectations of huge profits – in general, creativity in entrepreneurship is more idea-driven than profit-driven. Profit may be a goal but it is primarily a means. Daniel Suhonen, author and representative of the labor union think tank Katalys, began by stating that capitalism works – as long as it understands that it is part of a society. Profit extraction in Swedish companies has, however, in four decades gone from a quarter to a third of turnover. This, Suhonen argued, has led to stagnant economy rather than increased investments, and is not something that benefits the capitalist system in the long run.

Linda Portnoff, researcher at Handels in Stockholm and CEO of the interest organization Musiksverige, prefers to speak of value creation rather than profit. Profit is, or should be, a means, not a goal, she also argued. She gave a striking example: in 2014 Apple recorded the largest quarterly profit ever in the corporate world, while many musicians struggle. "But when I look at my iPhone, I think: what is it worth without music?" The value of profit lies in the content it enables.

The market economy in a free society does not look the same at all times in history, reminded business historian Ronald Fagerfjäll. Therefore, profit has also been understood in different ways at different times. Profit is a mechanism of elimination, it feeds development. A company that does not grow is a zombie company – neither alive nor dead.

Profit is needed to run businesses, the panel agreed on. But does it primarily feed development or increased societal divides? For what goals should profit be the means?

The entire seminar, with presentations and the subsequent panel debate, can be seen here: