Entrepreneurship in the markets of nonprofit performing arts organisations

This paper explores how managers in nonprofit performing arts organizations balance the interests of the various funding sources and market opportunities to service their revenue requirements. It reviews a tension in nonprofit performing arts organizations: the relationship between limited funding and the subsequent need to act entrepreneurially and innovatively amongst the various funding sources. Using a longitudinal analysis of annual reports in six major nonprofit performing arts organisations in Australia since 1975, the paper uncovers some of the interplay essential to entrepreneurship. From this discussion, different strategies and tensions are highlighted that nonprofit general managers have used. Comparisons are made with nonprofit art museums which previous research has shown have the same funding tensions.