How to Fill the Gap Between Knowledge and Innovation
Edited by Jean Bonnet, Domingo García Pérez De Lima and Howard Van Auken
Chapter 11: Is Non-profit Entrepreneurship Different from Other Forms? A Survey Data Analysis of Motivations and Access to Funds
11. Is non-profit entrepreneurship different from other forms? A survey data analysis of motivations and access to funds Franck Bailly and Karine Chapelle INTRODUCTION 11.1 In social economics non-profit organizations are generally seen as sharing a common social sensibility; in particular, they aim to serve their members’ interests and/or those of the wider community. This does not imply that such organizations are not seeking to make profits but rather that priority should be given to beneficiaries or employees of these organizations rather than to shareholders when it comes to distributing any profits that might be made. This social orientation, which strengthens the effects of the legal non-profit-distribution constraint, leads non-profit organizations to redistribute profits on the basis of ‘equity’ rather than on ‘ownership’ (Defourny and Monzon Campos, 1992). Because of this characteristic, they have been considered as marginal or residual organizations located on the fringes of the market economy. In fact, these non-profit organizations account for quite a significant share of both production and employment. Indeed, in most countries, especially in developed countries, they account for up to 3 per cent of GDP and 10 per cent of jobs. If volunteers are taken into account, their share in total employment may be as high as 15 per cent. From a dynamic point of view, they also contribute significantly to job creation. Between 1990 and 1995, employment in non-profit organizations grew significantly, by between 5 per cent and 40 per cent depending on the country. Some countries such as France, the...
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