Growing Pains: The Transformative Journey from a Nascent to a Formal Not-For-Profit Venture

Abstract

This article examines how a social venture transitions from nascent to formal status and argues that the transformation of the organization set in motion by establishing formal boundaries is a deeply profound one. Drawing from the nonprofit and social entrepreneurship literature on what prompts and energizes individuals to initiate new not-for-profit ventures, and linking it to a notion of revolutionary crisis as organizations emerge and develop, we seek to illuminate and explore the tension, and its consequences, between nonprofit entrepreneurs and the organization they create as the new venture transitions from nascent to formal. We do this by presenting the results from an in-depth case study examining the gestation and boundary-forming phases of Robert’s Place Cooperative, a plucky start-up cooperative in a midsize Midwestern city.