Professional Competence is the ability to compete in business.
The ability to compete in business is determined by cash flow.
When I run out of cash, my business is declared bankrupt and I am no longer able to compete professionally.
It is the ability to raise cash or borrow money that allows a business to compete and be competent as a profession.
Borrowers are assessed by lenders as to their professional competence.
The question is: “Who assesses the competence of the lenders to be professional”?
Making a profit is determined by the business acumen of the Managers & Directors, not by their professional competence.
A business does not necessarily have to declare a profit in order to be successful, professional or competent.
A ‘not-for-profit’ business still requires professionalism, competence and cash flow.
The more professional a business appears to be, the more competent it appears to be.