Effects of the Non-distribution Constraint on the Entrepreneurial Motivation of Non-profit Organizations

The entrepreneurial motivation of non-profit organizations is characterised by specific features derived from the non-commercial status of these organizations in society. While exploring the non-distribution constraint, which is a key structural feature of NPOs, in terms of entrepreneurial motivation, we concluded that the traditional understanding of the non-distribution constraint as an issue of trustworthiness was incomplete. The aim of this paper is to explain why the non-distribution constraint should be understood in a broader context and why it does not destroy entrepreneurial motivation. The theoretical approach, based on different explanations of this issue, is strengthened by relevant empirical findings from primary surveys conducted in the Czech Republic, Slovakia, and Austria. These findings help show that the entrepreneurial motivation of NPOs can be in compliance with the non-distribution constraint and enable a better understanding of the role of the non-distribution constraint in economic theory and praxis.