Skip to main content
SpringerLink
Log in

Non-profit organizations, entrepreneurship, social capital and economic growth

  • Published:
Small Business Economics Aims and scope Submit manuscript

Abstract

Traditional economic growth literature focuses mainly on the neoclassical approach. According to this view, firms try to maximize their benefits so that there is no place for non-profit organizations (NPOs). However, the activity of NPOs has a higher relevance in society, and it is necessary to analyze its effects on economic growth. These effects are not direct, but occur through other variables that directly promote economic growth, such as entrepreneurship activity and human capital, and through the improvement of education. We engage in an empirical analysis of these issues using data from 11 countries.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Abramovitz, M. (1986). Catching-up, forging ahead and falling behind. Journal of Economic History, 46(2), 385–406.

    Article  Google Scholar 

  • Abramovitz, M. (1989). Thinking about growth and other essays on economic growth and welfare. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Acs, Z. J. (2002). Innovation and the growth of cities. Cheltenham: Edward Elgar.

    Google Scholar 

  • Acs, Z. J., & Audretsch, D. B. (1988). Innovation in large and small firms: An empirical analysis. American Economic Review, 78, 678–690.

    Google Scholar 

  • Acs, Z. J., Audretsch, D. B., Braunerhjelm, P., & Carlson, B. (2004). The missing link the knowledge filter and entrepreneurship in endogenous growth, Working Paper 4783, London: Center for Economic Policy Research.

  • Acs, Z. J., Audretsch, D. B., Braunerhjelm, P., & Carlson, B. (2005). Growth and entrepreneurship: an empirical assessment. Working Paper 3205, Discussion Papers on Entrepreneurship, Growth and Public Policy. Jena, Germany: Max Plank Institute of Economics.

  • Aghion, P., & Bolton, P. (1992). Distribution and growth in models of imperfect capital markets. European Economic Review, 36, 603–611.

    Article  Google Scholar 

  • Aghion, P., Caroli, E., & Garcia-Peñalosa, C. (1999). Inequality and economic growth: The perspective of the new growth theories. Journal of Economic Literature, XXXVII, 1615–1660.

    Article  Google Scholar 

  • Alesina, A., & Perotti, R. (1996). Income distribution, political instability, and investment. European Economic Review, 40, 1203–1228.

    Article  Google Scholar 

  • Alesina, A., & Rodrik, D. (1994). Distribution policies and economic growth? Quarterly Journal of Economics, 109, 465–490.

    Article  Google Scholar 

  • Alfranca, O., & Galindo, M. A. (2003). Public capital, income distribution, and growth in OECD countries. International Advances in Economic Research, 9, 133–139.

    Article  Google Scholar 

  • Alfranca, O., & Galindo, M. A. (2006). Income distribution and economic growth with environmental restrictions. In M. Bahmani-Oskooee & M. A. Galindo (Eds.), Next economic growth (pp. 67–80). New York: Nova science Publisher.

    Google Scholar 

  • Audretsch, D. B. (2006). The entrepreneurial society. New York: Oxford University Press.

    Google Scholar 

  • Audretsch, D. B. (2009). The entrepreneurial society. Journal of Technology Transfer, 34(3), 245–254.

    Article  Google Scholar 

  • Audretsch, D. B., Bonte, W., & Keilbach, M. (2008). Entrepreneurship capital and its impact on knowledge diffusion and economic performance. Journal of Business Venturing, 23(6), 687–698.

    Article  Google Scholar 

  • Audretsch, D. B., & Keilbach, M. (2004a). Does entrepreneurship capital matter? Entrepreneurship: Theory and Practice, 28(5), 419–429.

    Article  Google Scholar 

  • Audretsch, D. B., & Keilbach, M. (2004b). Entrepreneurship capital and economic performance. Regional Studies, 38(8), 949–959.

    Article  Google Scholar 

  • Audretsch, D. B., & Keilbach, M. (2008). Resolving the knowledge paradox: Knowledge-spillover entrepreneurship and economic growth. Research Policy, 37(10), 1697–1705.

    Article  Google Scholar 

  • Bahmani-Oskooee, M., Galindo, M. A., & Mendez, M. T. (2008). Social capital and entrepreneurship in a regional context: the case of Spanish region, s. In M. A. Galindo, J. Guzmán, & D. Ribeiro (Eds.), Entrepreneurship and Regional Economics (pp. 101–111). Berlin: Springer.

    Google Scholar 

  • Banerjee, A. V., & Newman, A. F. (1993). Occupational choice and the process of development. Journal of Political Economy, 101, 274–298.

    Article  Google Scholar 

  • Baumol, W. (1986). Productivity growth, convergence and welfare: Comment. American Economic Review, 78, 1138–1154.

    Google Scholar 

  • Becker, G. K., Murphy, M., & Tamura, R. (1990). Human capital, fertility, and economic growth. Journal of Political Economy, 98(5), S12–S37.

    Article  Google Scholar 

  • Bénabou, R. (1996a). Unequal societies. NBER Working Paper 5583.

  • Bénabou, R. (1996b). Inequality and growth. In NBER Macroeconomic Annual 1996. MIT Press, MA: Cambridge.

  • Benz, M. (2009). Entrepreneurship as a non-profit-seeking activity. International Entrepreneurship and Management Journal, 5, 23–44.

    Article  Google Scholar 

  • Bertola, G. (1993). Factor shares and savings in endogenous growth? American Economic Review, 83, 1184–1198.

    Google Scholar 

  • Birley, S. (1985). The role of networks in the entrepreneurial process. Journal of Business Venturing, 1, 107–117.

    Article  Google Scholar 

  • Bourdieu, P. (1986). The forms of capital. In J. G. Richardson (Ed.), Handbook of theory and research for the sociology of education (pp. 241–258). New York: Greenwood Press.

    Google Scholar 

  • Bourguignon, F., & Verdier, T. (2000). Oligarchy, democracy, inequality, and growth. Journal of Development Economics, 62, 285–313.

    Article  Google Scholar 

  • Bowles, S., & Gintis, H. (2002). Social capital and community governance. The Economic Journal, 112, 419–436.

    Article  Google Scholar 

  • Carrasco, I., & Castaño, M. S. (2009). Social capital, entrepreneurial capital and economic growth. In L. R. Elling (Ed.), Social development. New York: Nova Publisher.

    Google Scholar 

  • Caruana, A., & Ewing, M. T. (2002). Effects of some environmental challenges and centralization on the entrepreneurial orientation and performance of public sector entities. Service Industries Journal, 22, 43–58.

    Article  Google Scholar 

  • Castaño, M. S. (2007). The influence of socioeconomic factors on economic growth. International Advances in Economic Research, 13(2), 139–145.

    Article  Google Scholar 

  • Castaño, M. S., & Carrasco, I. (2005). Social capital and economic growth: The competitive advantage. In M. Bahmani-Oskoee & M. A. Galindo (Eds.), Next economic growth: New factors and new perspectives (pp. 121–136). New York: Nova Press.

    Google Scholar 

  • Coleman, J. S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94, S95–S120.

    Article  Google Scholar 

  • Coleman, J. S. (1990). Foundations of social theory. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Cook, C. J. (1995). Saving rates and income distribution: further evidence from LDCs. Applied Economics, 27, 71–82.

    Article  Google Scholar 

  • Dobkin Hall, P. (1987). A historical overview of the private nonprofit sector. In W. Powell (Ed.), The nonprofit sector: A research handbook (pp. 3–21). New Haven: Yale University Press.

    Google Scholar 

  • Durlauf, S. N., & Fafchamps, M. (2005). Social capital. In P. Aghion & S. N. Durlauf (Eds.), Handbook of economic growth (1639–1700) (Vol. 1b). Amsterdam: North-Holland.

  • Fukuyama, F. (1995). Trust: The social virtues and the creation of prosperity. New York: Free Press.

    Google Scholar 

  • Fukuyama, F. (1997). Social capital. Tanner Lecture on Human Values.

  • Galor, O., & Zeira, J. (1993). Income distribution and macroeconomics. Review of Economic Studies, 60(1), 35–52.

    Article  Google Scholar 

  • Gert-Jan Hospers, G. J., Desrochers, P., & Sautet, F. (2009). The next Silicon Valley? On the relationship between geographical clustering and public policy. International Entrepreneurship and Management Journal, 5, 285–299.

    Article  Google Scholar 

  • Groenewegen, P. (1991). Division of labor. In J. Eatwell, M. Milgate, & P. Newman (Eds.), The new Palgrave dictionary of economics (Vol. 1, pp. 901–907). London: Macmillan

  • Juhn, C., Murphy, K., & Pierce, B. (1993). Wage inequality and the rise in returns to skill. Journal of Political Economy, 101(3), 410–442.

    Article  Google Scholar 

  • Kaldor, N. (1956). Alternative theories of distribution. Review of Economic Studies, 23(2), 83–100.

    Article  Google Scholar 

  • Kearney, C., Hisrich, R., & Roche, F. (2008). A conceptual model of public sector corporate entrepreneurship. International Entrepreneurship and Management Journal, 4, 295–313.

    Article  Google Scholar 

  • Keefer, P., & Knack, S. (2000) Polarization, politics and property rights: Links between inequality and growth. World Bank, Working Paper, 2418.

  • Kelly, A. C., & Williamson, J. G. (1968). Household savings behaviour in developing country: The Indonesian case. Economic Development and Cultural Change, 16(3), 385–403.

    Article  Google Scholar 

  • Kuznets, S. (1955). Economic growth and income inequality. The American Economic Review, 73(5), 1132–1136.

    Google Scholar 

  • Lin, N. (2001). Building a network theory of social capital. In N. Lin, K. Cook, & R. S. Burt (Eds.), Social capital. Theory and research. New York: Aldine De Gruyter.

    Google Scholar 

  • Mas-Verdú, F., Baviera-Puig, A., & Martinez-Gomez, V. (2009). Entrepreneurship policy and targets: The case of a low absorptive capacity region. International Entrepreneurship and Management Journal, 5, 243–258.

    Article  Google Scholar 

  • Oakley, A. (1990). Schumpeter’s theory of capitalist motion. Aldershot: Edward Elgar.

    Google Scholar 

  • Ostrom, E. (1990). Governing the commons: The evolution of institutions for collective action. Cambridge: Cambridge University Press.

    Google Scholar 

  • Perotti, R. (1993). Political equilibrium, income distribution and growth. Review of Economic Studies, 60, 755–776.

    Article  Google Scholar 

  • Perotti, R. (1996). Growth, income distribution and democracy: What the data say. Journal of Economic Growth, 1, 149–187.

    Article  Google Scholar 

  • Persson, T., & Tabellini, G. (1994). Is inequality harmful for growth? American Economic Review, 84, 600–621.

    Google Scholar 

  • Piketty, T. (1997). The dynamics of the wealth distribution and interest rates with credit rationing? Review of Economic Studies, 64(2), 173–189.

    Article  Google Scholar 

  • Putnam, R. D. (1993). The prosperous community. American Prospect, 13, 35–42.

    Google Scholar 

  • Putnam, R. D. (2000). Bowling alone, New York: Simon and Schuster.

  • Putnam, R. D., & Gross, D. (2003). Introducción. In R. D. Putnam (Ed.), El declive del capital social (pp. 7–34). Barcelona: Galaxia Gutenberg.

  • Putnam, R. D., Leonardi, R., & Nanetti, R. (1993). Making democracy work: Civic traditions in Modern Italy. Princeton: Princeton University Press.

    Google Scholar 

  • Robison, L., Schmid, A., & Siles, M. (2002). Is social capital really capital? Review of Social Economy, 60(1), 1–21.

    Article  Google Scholar 

  • Saint-Paul, G., & Verdier, T. (1992). Historical accidents and the persistence of distributional conflicts. Journal of Japanese and International Economics, 6, 406–422.

    Article  Google Scholar 

  • Saint-Paul, G., & Verdier, T. (1993). Education, democracy and growth. Journal of Development Economics, 42(2), 399–407.

    Article  Google Scholar 

  • Schumpeter, J. A. (1911). The theory of economic development. New York: Oxford University Press.

    Google Scholar 

  • Schumpeter, J. A. (1947). Theoretical problems of economic growth. Journal of Economic History Supplement, 1–9.

  • Smith, A. (1776[1976]). Chapter i: Of the division of labour. Chapter ii: Of the principle which gives occasion to the division of labour. In R. H. Campbell & A. S. Skinner (Eds.), An inquiry into the nature and causes of the wealth of nations. Oxford: Oxford University Press.

  • Solomon, R. C. (2002). Business ethics and virtue. In R. E. Frederick (Ed.), A Companion to business ethics (pp. 30–37). Oxford: Basil Blackwell.

  • Stel, A., Carree, M., & Thurik, R. (2005). The effect of entrepreneurial activity on national economic growth. Small Business Economics, 24(3), 311–321.

    Article  Google Scholar 

  • Svensson, J. (1998). Investment, property rights and political instability: theory and evidence. European Economic Review, 42, 1317–1341.

    Article  Google Scholar 

  • Sylwester, K. (2000). Income inequality, education expenditures, and growth. Journal of Development Economics, 63, 379–398.

    Article  Google Scholar 

  • Tan, W. L., Williams, J., & Tan, T. M. (2005). Defining the ‘Social’ in ‘Social Entrepreneurship’: Altruism and entrepreneurship. International Entrepreneurship and Management Journal, 1, 353–365.

    Article  Google Scholar 

  • Thurik, R. (1999). Entrepreneurship, economic growth and policy in emerging economies. WIDER (World Institute for Development Economics Research) Research Paper No. 2009/12.

  • Tsiddon, D. (1992). A moral hazard trap to growth. International Economic Review, 33, 299–321.

    Article  Google Scholar 

  • Valentinov, V. (2006). Nonprofit organization and the division of labor: A theoretical perspective. Atlantic Economic Journal, 34(4), 435–447.

    Google Scholar 

  • Wennekers, S., &Thurik, R. (1999 [2006]). Linking entrepreneurship and economic growth. In M. A. Carree & A. R. Thurik (Eds.), The handbook entrepreneurship and economic growth (pp. 3–31). Cheltenham, UK: Edward Elgar.

  • Wolcock, M. (2001). The place of social capital in understanding economic and social outcomes. Canadian Journal of Policy Research, 2(1), 11–17.

    Google Scholar 

  • Woolcock, M., & Narayan, D. (2000). Social capital: Implications for development theory, research and policy. World Bank Research Observer, 15(2), 225–249.

    Google Scholar 

  • World Value Survey. (2009). Data http://www.worldvaluessurvey.org/. Accessed 20 May 2009.

  • Zou, H., & Li, H. (2000). Income inequality is not harmful for growth: Theory and evidence. Journal of Development Economics, 2(3), 318–334.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Georgia Southern University, Statesboro, GA, USA

    Sahar Bahmani

  2. University of Castilla, La Mancha, Spain

    Miguel-Ángel Galindo

  3. University Complutense de Madrid, Madrid, Spain

    María Teresa Méndez

Authors
  1. Sahar Bahmani
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Miguel-Ángel Galindo
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. María Teresa Méndez
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to María Teresa Méndez.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Bahmani, S., Galindo, MÁ. & Méndez, M.T. Non-profit organizations, entrepreneurship, social capital and economic growth. Small Bus Econ 38, 271–281 (2012). https://doi.org/10.1007/s11187-010-9274-7

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11187-010-9274-7

Keywords

JEL Classifications

Search

Navigation