Risky business? The survival implications of exploiting commercial opportunities by nonprofits

Gras, David; Mendoza-Abarca, Karla I.

doi:10.1016/j.jbusvent.2013.05.003

Cited by 114 publications

(135 citation statements)

References 47 publications

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“…Beyond 90 % of public resources, social economy organizations have more than a 10 % probability of dissolving. Our results are opposite to those obtained by Hager et al (2004) but consistent with those of Gras and Mendoza-Abarca (2014). Mortality is thus at a minimum for 30-40 % of public resources, meaning that most of the revenue comes from commercial or other sources (donations and contributions).…”

Section: Resultssupporting

confidence: 66%

“…2 However, they highlight that this typology does not explain the difference in survival, which is not the case with the access to government resources. Working on Canadian data, Gras and Mendoza-Abarca (2014) show, on the contrary, that income diversification has an impact on survival, with the most important source of income being market sales. 3 These studies thus do not undertake a systematic analysis of the different forms of organizations.…”

Section: Previous Work On the Survival Of Organizational Forms Of Socmentioning

confidence: 99%

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Do Hybrid Organizational Forms of the Social Economy have a Greater Chance of Surviving? An Examination of the Case of Montreal

Bouchard

Rousselière

2015

Voluntas

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International audience

The objective of this article is to contribute to an understanding of the evolution of a population of social economy enterprises faced with the economic crisis, namely by referring to the case of Montreal. We apply a two-step approach. For one, we use an innovative discrete-time survival model that takes spatial heterogeneity into account. In a second step, this model is used to predict the survival of different forms of the social economy, according to various proposed typologies for identifying hybrid organizational forms. It is understood that certain organizational forms (professional social economy) have fared better than others (emerging social economy). Organizations combining several sources of financing and several forms of paid or volunteer work likewise have greater chances of survival.

L’objectif de cet article est de contribuer à une compréhension de l’évolution d’une population d’entreprises d’économie sociale confrontée à la crise économique, en nous appuyant sur l’exemple de Montréal. Nous mobilisons une approche en deux étapes. Nous utilisons un modèle novateur de survie en temps discret tenant compte de l’hétérogénéité spatiale. Ce modèle est ensuite utilisé pour prédire la survie de différentes formes d’économie sociale, suivant différentes typologies proposées identifiant des formes organisationnelles hybrides. On constate que certaines formes organisationnelles (économie sociale professionnelle) ont mieux survécu que d’autres (économie sociale émergente). De même, les organisations combinant plusieurs sources de financement et plusieurs formes de travail salarié ou bénévole ont eu plus de chances de survivre.

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Section: Resultssupporting

confidence: 66%

Section: Previous Work On the Survival Of Organizational Forms Of Socmentioning

confidence: 99%

Do Hybrid Organizational Forms of the Social Economy have a Greater Chance of Surviving? An Examination of the Case of Montreal

Bouchard

Rousselière

2015

Voluntas

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International audience

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“…As such, both market wages and economic incentives typically available to recruit highly skilled people in the commercial sector are rarely available in the social sector (Austin et al, 2006). This ultimately relates to Pareto's (1906) At the same time, as Lumpkin et al (2013) suggest, organizations with dual objectives have to meet the needs of multiple stakeholders, who legitimize the organizational activity and contribute in its resource acquisition (Gras and Mendoza, 2014). As such, experience in social specific endeavours further cements the connection between individual experiences, organizational legitimacy, and the pursuit of the PhVC firm's social objectives.…”

Section: Human Capital In Traditional and Philanthropic Venture Capitmentioning

confidence: 99%

“…Hybrid firms have a primary objective of solving complex societal problems through market-based solutions (Certo and Miller, 2008;Austin, et al, 2006;Mair and Marti, 2006), while at the same time creating revenue strategies which enhance their likelihood of organizational survival (Gras and Mendoza, 2014;Carroll and Stater, 2009). In effect, social enterprises apply commercially sound "best practices" to address prescient social issues which are inadequately addressed through traditional commercial, nonprofit and/or governmental activity (Santos, 2012).…”

Section: Introductionmentioning

confidence: 99%

Ingredients Matter: How the Human Capital of Philanthropic and Traditional Venture Capital Differs

2015

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Philanthropic venture capital (PhVC), like traditional venture capital (TVC), provides funding and value added services to a portfolio of entrepreneurial firms. However, TVC differs from PhVC, as the primary goal of TVC is to maximize the economic return of its investments. In contrast, PhVC firms expect their portfolio companies to perform well in terms of both social and economic returns. Using both American and European firms, this paper explores and compares the human capital in PhVC and TVC firm founders. Our results show that there are key differences in both general and specific human capital between these firm types. While both TVC and PhVC firm founders have high levels of commercial experience, TVC firm founders tend to hold degrees in science, engineering, business, and law more frequently than PhVC firm founders. PhVC founders also differ from TVC founders by having greater work experience in the social sector.

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“…Finding how social opportunities are discovered, created and exploited is another topic that concerned scholars leading to a series of papers published (Corner and Ho, 2010;Gras and Mendoza-Abarca, 2014). The process of identification and evaluation of social opportunities was defined by Weerawardena and Mort (2006) as the distinct activity of entrepreneurs trying to create social value.…”

Section: Major Research Aims Studiesmentioning

confidence: 99%

Main research areas and methods in social entrepreneurship

Hadad

2017

Proceedings of the International Conference on Business Excellence

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Risky business? The survival implications of exploiting commercial opportunities by nonprofits

Cited by 114 publications

References 47 publications

Do Hybrid Organizational Forms of the Social Economy have a Greater Chance of Surviving? An Examination of the Case of Montreal

Do Hybrid Organizational Forms of the Social Economy have a Greater Chance of Surviving? An Examination of the Case of Montreal

Ingredients Matter: How the Human Capital of Philanthropic and Traditional Venture Capital Differs

Main research areas and methods in social entrepreneurship

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