What differentiates nonprofit from for-profit entrepreneurship? This article not only explores the differences in risk and uncertainly in nonprofit entrepreneurship, but it also explains why nonprofit entrepreneurs and their funders are unwise to trap themselves falsely in a for-profit framework.
As with the example of Goodwill in Detroit, this time with a focus on Native American communities in New Mexico, a nonprofit opts to promote business development (with jobs) as a strategy to promote lasting community economic empowerment.
The U.S. social sector insists on raising up the “bold individual” as the hero of entrepreneurial endeavor—yet, as the authors write, “the uncertainty of our world requires the many to envision solutions.” In the long run, the entrepreneurship of a collective rather than a single individual may have a better chance of producing sustainable and relevant impact.
In this article from 2011, Buzz Schmidt, founder of GuideStar, chair of the board of the F.B. Heron Foundation, and former chair of the NPQ board, argues that all enterprises need to be held to account for their contribution to—or depletion of—those things that are necessary to sustain a healthy society. He calls these “elements of community capital.” This article contains ideas that are core to NPQ’s views.