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Changing Times: Entrepreneurial Leadership In A Community-Based Nonprofit Organization

December 27, 2000 

"Times are tough for nonprofit organizations attempting to deliver services to their constituents (Bielefeld, 1994, Selsky & Smith, 1994).  The decrease in funding from traditional revenue streams, coupled with intensely competitive markets, have taken their toll and often paint a gloom picture for many nonprofit organizations.  In order to ensure survival, executive directors/CEOs of nonprofit organizations must exhibit a special brand of leadership by becoming more vigilant, aggressive, creative, entrepreneurial, and willing to accept and embrace change. 

This initiative on leadership and change in nonprofit community-based organizations studied Hispania, a thirty-year old community-based nonprofit organization.  A variety of research methods were used to collect data including interviews, non-participant observation, and primary and secondary sources.  The initial phase of the research began with developing a rapport with the new President/CEO of the Hispania organization through interviews, access to board members and access to primary and secondary documents to understand the organization's background and development. 

The results of this study can benefit other nonprofit organizations in a number of ways.  First, smaller-sized nonprofit organizations need leaders and not managers especially at top levels.  Bennis (1989:45) has compared the concepts as follows:

            The manager administers; the leader innovates.

            The manager is a copy; the leader is an original.

            The manager maintains; the leader develops.

The manager focuses on systems and structure; the

leader focuses on people.

The manager relies on control; the leader inspires trust.

The manager has a short-range view; the leader has a long-range perspective.

The manager asks how and when; the leader asks what and why.

The manager has his eye always on the bottom line; the leader has his eye on the horizon.

The manager imitates; the leader originates.

The manager accepts the status quo; the leader challenges.

The manager is the classic good soldier; the leader is his own person.

The manager does things right; the leader does the right thing.

Second, where resources are limited and where multiple organizations are resource dependent and compete for funding from similar sources, community-based nonprofit organizations require a new brand of leadership - an entrepreneurial and visionary leader - if they are to avoid organizational maturity and eventual decline.  Third, entrepreneurial leadership must be present in nonprofit organizations.  Finally, nonprofit organizations have begun to resemble business in several ways.  They have borrowed a page from the corporate sector's book on entrepreneurship by encouraging commercialism in their organizations.

Nonprofit CEOs must learn to strike a critical balance as they become more enterprising and possess the vision to lead their organizations into commercial ventures and other unfamiliar areas.  They also must retain their commitment to their constituents and serve as enablers. 

This study suggests that there is a need to revisit the results of the transformational initiatives taken by the leader of Hispania over time to ensure that change is continuous and not a one-time success story.  Future research must investigate questions about organizational development once this leader retires or depart.  Will there continue to be what Nadler (1998) calls a champion of change?  How do nonprofit organizations incorporate change into the culture of their organizations to avoid organizational mortality?  What new strategic and leadership initiatives will be required to sustain continued growth and development?  What model(s) of change should nonprofit organizations adopt and implement?  Answers to these questions play an extremely important vital in determining the future survival of nonprofit organizations (1999, Santora, Seaton & Sarros, pp. 101-109)."

Reference: Santora, J.C., Seaton, W. & Sarros, J.C. (1999). Changing times: entrepreneurial leadership in a community-based nonprofit organization.  The Journal of Leadership Studies, 6 (3/4), 101-109.

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Created: 2008-02-26, Updated: 2009-02-17