Sage Journals: Discover world-class research

Abstract

A growing subset of nonprofit organizations in the United States are launching social purpose businesses (SPBs) that serve both as sources of additional revenues and locations for employment and job training for disadvantaged populations.This research note presents data from a study exploring SPB models for integrating business and social service technologies and organizational strategies for competing successfully in product and service markets while maintaining commitment to social goals. Data from a pilot study testing a survey instrument with a sample of 15 directors or managers of SPBs located in different regions of the United States show that slow growth, crosssubsidization, and diversification are key approaches to balancing commercial goals with social aims across a range of SPB organizational models. The relevance of these findings for future research on nonprofit social purpose enterprise is discussed.

Keywords

purpose business social enterprise work integration social enterprise

Get full access to this article

View all access options for this article.

References

Adams, C. , & Perlmutter, F. (1991). Commercial venturing and the transformation of America’s voluntary social welfare agencies. Nonprofit and Voluntary Sector Quarterly, 20, 25-38.

Alter, S.K. ( 2006). Social enterprise models and their mission and money relationships. In A. Nicholls (Ed.), Social entrepreneurship: New models of sustainable change (pp. 205-232). New York: Oxford University Press.

Anderson, B.B. , & Dees, J.G. ( 2006). Rhetoric, reality and research: Building a solid foundation for the practice of social entrepreneurship. In A. Nicholls (Ed.), Social entrepreneurship: New models of sustainable change (pp. 144-180). New York: Oxford University Press.

Charmaz, K. ( 2006). Constructing grounded theory: A practical guide through qualitative analysis. London: Sage .

Community Wealth Ventures. (2008). Social enterprise database. Retrieved July 31, 2008, from http://www.communitywealth.org/Directory%20of%20Social%20Enterprises.htm .

Cooney, K. ( 2006). The institutional and technical structuring of nonprofit ventures: Case study of a U.S. hybrid organization caught between two fields . Voluntas: International Journal of Voluntary and Nonprofit Organizations, 17, 143-161.

Creswell, J.W. ( 1998). Qualitative inquiry and research design: Choosing among the five traditions. Thousand Oaks: Sage.

Kerlin, J.A. ( 2006). Social enterprise in the United States and Europe: Understanding and learning from the differences. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 17, 247-263.

Lipman, H. , & Schwinn, E. ( 2001, October 18). The business of charity: Nonprofit groups reap billions in tax-free income annually. The Chronicle of Philanthropy, p. 25.

10.

Massarsky, C.W. , & Beinhacker, S.L. (2002). Enterprising nonprofits: Revenue-generation in the nonprofit sector. Retrieved October 6, 2009, from http://www.ventures.yale.edu/docs/Enterprising_Nonprofits.pdf

11.

Stake, R.E. ( 1995). The art of case study research. Thousand Oaks, CA: Sage.

12.

Strom, S. ( 2002, March 17). Nonprofit groups reach for profits on the side . The New York Times. Retrieved October 6, 2009, from http://www.sullivan-county.com/id2/np.htm

13.

Yin, R.K. ( 1994). Case study research: Design and methods. Thousand Oaks, CA: Sage.

14.

Young, D.R. , & Salamon, L.M. ( 2002). Commercialization, social ventures, and for-profit competition . In L. M. Salamon (Ed.), The state of nonprofit America (pp. 423-446). Washington, DC : Brookings Institution Press.

An Exploratory Study of Social Purpose Business Models in the United States

Abstract

Keywords

Get full access to this article

References