Ebook Public policy and economics of entrepreneurship: Part 2
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Ebook Public policy and economics of entrepreneurship: Part 2
5Dimensions of Nonprofit Entrepreneurship: An Exploratory EssayJoseph J. Cordes, c. Eugene Stcucrle, and Eric TwomblyBecause entrepreneurship is typic Ebook Public policy and economics of entrepreneurship: Part 2cally associated with the creation of new business ventures and innovation in the for-profit sector of the economy, "nonprofit entrepreneurship" may seem to be a contradiction in terms. Yet many large and successful nonprofit organizations that exist today can trace their lineage back to the enterpr Ebook Public policy and economics of entrepreneurship: Part 2ise and vision of a founder, such as the International Red Cross (Jean-Henri Dunant), Mothers Against Drunk Driving (Candace Lightner), Girl Scouts (JEbook Public policy and economics of entrepreneurship: Part 2
uliet Lowe), and Tax Analysts and Advocates (Thomas Field). More locally, it is also not unusual to find a press account of a recently founded nonprof5Dimensions of Nonprofit Entrepreneurship: An Exploratory EssayJoseph J. Cordes, c. Eugene Stcucrle, and Eric TwomblyBecause entrepreneurship is typic Ebook Public policy and economics of entrepreneurship: Part 2he economy, which by some estimates accounts for roughly 7 percent of the U.S. GDP, is thus clearly shaped by individuals who fit Webster's definition of an entrepreneur as "one who organizes, manages, and assumes the risks of a business or enterprise."1 There is also suggestive, though still largel Ebook Public policy and economics of entrepreneurship: Part 2y anecdotal, evidence that some new socially oriented businesses have been established by entrepreneurs who seek to combine for-profit ventures with aEbook Public policy and economics of entrepreneurship: Part 2
n explicit charitable purpose.Scholars have paid some attention to what can be described as entrepreneurial behavior by managers of existing nonprofit5Dimensions of Nonprofit Entrepreneurship: An Exploratory EssayJoseph J. Cordes, c. Eugene Stcucrle, and Eric TwomblyBecause entrepreneurship is typic Ebook Public policy and economics of entrepreneurship: Part 2e creation of new nonprofit enterprises,3 and still less to examining why some for-profit entrepreneurs may be motivated to harness their talents in the pursuit of social or charitable purposes.With this in mind, our chapter focuses on several questions pertaining to the formation of new’ enterprise Ebook Public policy and economics of entrepreneurship: Part 2s with a charitable or social mission.116Cordes Ct al.•What are recent patterns and trends in the formation of new traditional nonprofit organizationsEbook Public policy and economics of entrepreneurship: Part 2
, and of new "socially oriented" for-profit enterprises?•Why might rational economic actors invest their time, talents, and even financial resources t5Dimensions of Nonprofit Entrepreneurship: An Exploratory EssayJoseph J. Cordes, c. Eugene Stcucrle, and Eric TwomblyBecause entrepreneurship is typic Ebook Public policy and economics of entrepreneurship: Part 2new ventures, and the blurring of the boundaries between for-profit and not-for-profit activities affect the creation of new nonprofit and socially oriented for-profit enterprises?•How does public policy shape the incentives for individuals to become nonprofit entrepreneurs, and the external environ Ebook Public policy and economics of entrepreneurship: Part 2ment in which new organizations come into being?Births and Deaths among Organizations with Charitable PurposesThe volume of startups among both traditEbook Public policy and economics of entrepreneurship: Part 2
ional nonprofits and socially oriented for-profit ventures is a measure of the scope of nonprofit entrepreneurship that is analogous to the number of 5Dimensions of Nonprofit Entrepreneurship: An Exploratory EssayJoseph J. Cordes, c. Eugene Stcucrle, and Eric TwomblyBecause entrepreneurship is typic Ebook Public policy and economics of entrepreneurship: Part 2traditional nonprofit organizations drawing on data from the National Center for Charitable Statistics (NCCS), which is the national repository of data on the nonprofit sector.5 We also summarize some anecdotal evidence about the creation of for-profit ventures with explicitly charitable or social m Ebook Public policy and economics of entrepreneurship: Part 2issions.Growth and Change in the Number of Operating Public ChantiesAlthough the tax code recognizes several different forms of nonprofit tax-exempt eEbook Public policy and economics of entrepreneurship: Part 2
nterprises, within this broad group we focus attention on the formation of new "charitable" nonprofits, or 501(c)(3) organizations, that are eligible 5Dimensions of Nonprofit Entrepreneurship: An Exploratory EssayJoseph J. Cordes, c. Eugene Stcucrle, and Eric TwomblyBecause entrepreneurship is typic Ebook Public policy and economics of entrepreneurship: Part 2rities," or those which are eligible to receive tax deductible contributions and arc classified as providing a tangible service, as distinguished from nonprofits whose purpose is to support other operating charities. Our period of analysis is 1992 to 1996, during which time there were more than 300, Ebook Public policy and economics of entrepreneurship: Part 2000 501(c)(3)Nonprofit Entrepreneurship117Operating charities in the United States. We use the date on which a charity is officially recognized as a 5Ebook Public policy and economics of entrepreneurship: Part 2
01(c)(3) organization by the Internal Revenue Service as indicating the organization's date of entry or formation."Table 1 presents data on the change5Dimensions of Nonprofit Entrepreneurship: An Exploratory EssayJoseph J. Cordes, c. Eugene Stcucrle, and Eric TwomblyBecause entrepreneurship is typic Ebook Public policy and economics of entrepreneurship: Part 2perating public charities increased significantly from 1992 to 1996. While roughly 190,000 operating charities were in existence in the United States at the beginning of 1992, the number had increased by nearly 75 percent to approximately 245,000 groups by the close of 1996.8 The annual growth rate Ebook Public policy and economics of entrepreneurship: Part 2of operating charities was just over 5.0 percent during this period, which was considerably higher than the growth in the number of for-profit busmessEbook Public policy and economics of entrepreneurship: Part 2
es, which according to the U.S. Department of Commerce expanded al an annual rate of roughly 1.4 percent between 1992 and 1997?The higher rate of grow5Dimensions of Nonprofit Entrepreneurship: An Exploratory EssayJoseph J. Cordes, c. Eugene Stcucrle, and Eric TwomblyBecause entrepreneurship is typic Ebook Public policy and economics of entrepreneurship: Part 2s that have been observed in nonprofit and for-profit sectors in previous years. For example, Hodgkinson et al. (1996), report that between 1977 and 1992 the number of operating nonprofits grew at an annual growth rate of 4.7 percent from 1977 to 1992 compared with an annual growth rate of 3.0 perce Ebook Public policy and economics of entrepreneurship: Part 2nt in for-profit businesses. Similarly, Bowen et al. (1994) note that, among public charities, between 1981 and 1991, the number of entrants grew at aEbook Public policy and economics of entrepreneurship: Part 2
n annual rate of 6.5 percent, compared with an annual increase in the rate of business incorporations over the same period (if 5 percent per year.Entr5Dimensions of Nonprofit Entrepreneurship: An Exploratory EssayJoseph J. Cordes, c. Eugene Stcucrle, and Eric TwomblyBecause entrepreneurship is typic Ebook Public policy and economics of entrepreneurship: Part 2s. Since new organizations must generally be founded by someone, these data provide a rough statistical gauge of the importance of entrepreneurship to institutional growth and change.10Table 1 shows that nearly 130,000 new operating charities officially came into being between 1992 and 1997.11 Table Ebook Public policy and economics of entrepreneurship: Part 2 2 presents entry rales and further breakdowns of exits among both startups and existing nonprofits. Subtracting startup exits shown in column 4 fromEbook Public policy and economics of entrepreneurship: Part 2
total118Cordes Ct al.Table 1Entry and exit of nonprofit organizations, 1992-1996. Source: National Centery for Charitable Statistics, Center on Nonpro5Dimensions of Nonprofit Entrepreneurship: An Exploratory EssayJoseph J. Cordes, c. Eugene Stcucrle, and Eric TwomblyBecause entrepreneurship is typic Ebook Public policy and economics of entrepreneurship: Part 2-1996(5) Number, 1996Arts, culture, humanities20847139065345333626072Education (not K-12)29232170186116491435220K-12 education320512794591703355Environment3238428022005704748Animals238216695292803242Health, general1854756001440221120496 Ebook Public policy and economics of entrepreneurship: Part 25Dimensions of Nonprofit Entrepreneurship: An Exploratory EssayJoseph J. Cordes, c. Eugene Stcucrle, and Eric TwomblyBecause entrepreneurship is typicGọi ngay
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