Abstract

Cultural and creative nonprofit firms run by young entrepreneurs are an economic area complementary to the public and private offering of the marketable and non-marketable cultural sector. The article distinguishes the cultural nonprofit firms between two classes: the mutual benefit ones and the public benefit ones. A wide range of reasons are provided in order to justify greater support from the state to the cultural nonprofit youth firms. The article, using information derived by a dataset of an aid to enterprise set up by 10 Bank Foundations, identify numerous social products that can be connected to the existence of a nonprofit sector run by the young entrepreneurs: freedom of expression, pluralism, consumer protection, defense of the workplace, defense from an excessive degree of monopoly, better costs and revenues control. These social products macroeconomic argument may justify the public intervention, more than the sole and traditional microeconomic market failure explanation. Despite these advantages, nonprofit firms are weak in terms of organization and finance. Real public support of nonprofit cultural firms are not designed to meet their needs.