Reconciling Public Entrepreneurship and Democracy

Author(s): Carl J. Bellone and George Frederick Goerl

Source: Public Administration Review, Vol. 52, No. 2 (Mar. - Apr., 1992), pp. 130-134
Published by: Wiley on behalf of the American Society for Public Administration
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 The 1980s have been labeled the "age of the
entrepreneur." Severalcommentators have giventhe
Reaganadministration creditforpromoting thevirtues
of privateenterprise,"leaner" governments,and
entrepreneurial budgets(thosethatlowertaxburdens).

andDemocracy
Entrepreneurship The riseof thepublic-sector
theadventoftaxlimitation
entrepreneur
movements,
is foundin
declining feder-
al grantsto stateand localgovernments, and thegrow-
ing fiscalcrisesfacedby governments at all levelsof
Carl
J.Bellone, Frederick
George Goerl, the federal system. Public administratorsas
California University,
State Hayward entrepreneurs and agentsofentrepreneurial statesseek
to findnewsourcesofrevenue,besidesthe more tradi-
tionaltaxes,to increasetax bases througheconomic
Can public-sectorentrepreneurship amongpublic development projectsand to augmentthe numberof
administrators be reconciledwiththedemandsfor private-sector entrepreneurs withintheirboundaries.
adherenceto democraticvalues in government admin- Current attention partnerships
paid to public-private as
istration?Carl Belloneand GeorgeFrederickGoerl solutionsto thefiscaland social problemsof govern-
reviewthenatureofthatchallengebyconsideringthe mentsymbolizes the importance currentlyattachedto
seeminglycontraryvalues emphasizedin each role. bothprivate and publicentrepreneurship.
Whileentrepreneurship callsfor autonomy,a personal However,the characteristicbehavior of public
visionofthefuture, secrecy,and risk-takingbehavior, entrepreneurs (as well as traditionalpublicadministra-
democraticadministrationdemands accountability, tors),mustbe evaluatedin termsof administrative
citizenparticipation,openpolicymaking processes,and responsibilityiftheiractionsare to be compatible with
"stewardship" behavior. Theybelievetheseperspectives democratic values. Administrative responsibilitycan be
viewedas simplyfollowing policiesand directions of
can be bridgedthrougha "civic-regarding
hierarchicalsuperiors.Becausethisapproachcan lead
entrepreneurship" whichbuildson a "strongtheoryof
to the Eichmannphenomenon,some authorshave
citizenship."
arguedthatadministrative responsibility mustinclude
certaindemocratic valueswhenadministrators are car-
ryingoutadministrative directives.Otherauthorshave
even describedresponsibility as requiring theadminis-
tratorto becomean activeagentof democratic educa-
tionand reform.JohnBurkeurgesadministrators to
correctany departures fromdemocratic principlesby
to feelan obligation
politicians, to democratic govern-
mentas a whole,and to acteffectively to achievepoli-
cy ends(Burke,1986,pp. 42, 45, 50-54).TerryCooper
arguesthatpublicadministrators, as "citizen-administra-
tors,"shouldbe politicaleducatorsfora citizenry that
needs more information in orderto play important
politicaland citizenship roles(Cooper,1984). In these
two cases, theoristsof administrative responsibility
assumethatthepublicadministrator has a responsibility
forfurthering democratic valuesin thepoliticalprocess,
in policyimplementation, and fordevelopingbetter
opportunitiesforcitizenship.

130 PublicAdminisation 1992,Vol.52,No. 2

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 As entrepreneurs,
publicadministrators,havetakenon the citycouncilspendslittletimegoingoverthecitymanager's
added responsibility
offinding new and additionalsourcesof budgetor in holdingbudgethearings.Fairfield's budgetis
revenue;buttheyhave,at thesame time,a vestedpolitical determined on a formula basis thatincludescost of living,
self-interest.
The legitimacy of publicentrepreneurswould populationgrowth,and availablerevenueindicies. Each
seem to reston theirexercising administrative
responsibility department getsa predetermined percentageof the overall
in the democratic mannerdescribedabove so as to make budget.Neartheend oftheyear,however, each department
publicentrepreneurship compatiblewithdemocratic values headmustcomebeforethecounciland explainhowtheallo-
and institutional
roles.Fourimportant characteristics
ofpublic catedmoneywas spentto achievetheagreed-upon goalsof
entrepreneurs-autonomy, a personalvisionof the future, thedepartment. It shouldbe noted,however,thatbecause
secrecy,and risk-taking-need to be reconciled
withthefun- thegoalsof departments can be hardto measure,theopen-
damentaldemocratic valuesof accountability,
citizenpartici- lineof creditgivendepartment headsmaynotalwaysresult
pation,open policymaking processes,and concernforthe ineffective publicaccountability.
long-termpublicgood (stewardship).

PublicEntrepreneurialVision
Entrepreneurial
Autonomy VersusCitizenParticipation
VersusDemocratic
Accountability A secondconflict fora publicentrepreneur who desires
First,a conflictexistsbetweenthe autonomy/discretiondemocratic legitimacy is betweenentrepreneurial visionand
desiredbyentrepreneurs and democratic accountability.With democracy's need forcitizeninput. TerenceMitchelland
an increasein the complexity of revenueproblemsfacing WilliamG. Scotthave suggestedthatentrepreneurs maybe
manygovernments, publicadministrators ask forgreater dis- no moreprescientand knowledgeable thanthe restof us
cretionto carryout theirentrepreneurial revenuesearches (Mitchell and Scott,1987,pp. 447-448). Democratic politics
(Lewis,1980;Goerland Bellone,1983).Revenuecriseshave and administration bothdemandthatcitizensbe able to con-
madepublicpolicygoalsrelatively less importantin compari- tribute viewson issuesof importance to them. However,if
son to economicgoalsor revenueacquisition.In thenameof entrepreneurs areto be innovators, itmeansthattheyneedto
revenuegeneration, programs and projectsare set in motion come withvisionsor ideas thatare, by definition, uncom-
thatthreatento changedrastically thecharacter ofa communi- mon. The Reagan administration'sIran-Contraarms
tyand theauthority relationships betweenprofessional public entrepreneurial scheme,implemented by OliverNorthand
administratorsandthecitizenry. Forexample,userfees,rede- others,and the vision of the formerMayorof Oakland,
velopmentagencies,off-budget enterprises, investment rev- California, and othersto reacquirethe OaklandRaidersby
enues,tax-increment financing,and development feescan be guaranteeing ticketsales, are examplesof privatevisions
seen as measuresto avoid voterapprovaland, thereby, which,by moststandards,were not compatiblewiththe
increasetheautonomy of publicofficialsand publicadminis- tenetsofdemocratic participationandapproval.
trators.Togetherwithprivatization, theycontribute to the The Los AngelesOlympicOrganizing Committee's deci-
autonomy and discretion of publicentrepreneurs whileoften sion to have the 1984 Olympicsprivately financedand the
making publicaccountabilitymoredifficult. decisionof theCityof SantaClara,California, to buya $100
Becausethepublicsector'sbottom lineis hardto measure millionamusementpark in orderto save it fromclosing,
publicaccountability is mostoftenattempted by measuring althoughnotwidelyheldvisions,gainedacceptanceby the
inputsor regulating administrativeprocesses.Thus,through publicand publicofficials through open discussion.In the
the budgetprocessand administrative rulesand regulation, latter case,thecitizenry ofSantaClaragottovoteon thepro-
legislativebodies have long soughtto circumscribe the posal.
actionsofpublicagenciesin thebeliefthatbudgetsandregu- Onlybytesting entrepreneurial visionthrough a meaning-
lationsensureaccountability (Gruber, 1987). A characteristic fulpublicparticipation processcan publicadministrators
of publicentrepreneurs, and
however,is theirattempt to increase othersensurethatpublicentrepreneurship is compatible with
theirinfluence overbudgetprocessesin orderto be freefrom thevaluesofdemocratic participation.
excessiverulesand regulations. Publicentrepreneurs ask for
autonomy fromline-item budgetcontrols in orderto be more
effective and efficient.Theywantdiscretion
money"(publicentrepreneurs
to spend"their
are encouragedto see them- Entrepreneurial
Secrecy
selvesas owners)formeasuresthattheydeemimportant and VersusDemocratic
Openness
on itemsthey,notothers, choose. Thismeansthat,ifpublic
A thirdconflictis betweenthe entrepreneur's need for
entrepreneurs are to be held accountable,measuresof
accountability mustshiftfroman inputor processfocusto secrecy and the democratic value of conducting the public's
one based on an outcomeanalysis.Analysis businessin theopen. Opennessis definedas disclosure of
of outcomesas
a means to measureadministrative information in policymaking stagesthatpermits the publicto
accountability can be be informed
tracedto the1960swithprogram budgeting participantsin the policymaking process. The
andevaluation.
Iran-Contraarmsdeal is a good exampleofan entrepreneuri-
A current exampleof outcomeaccountability forpublic al activity requiringsecrecyto be successful.Giventhecom-
entrepreneurs can be foundin Fairfield, California,
wherethe petitive natureof localgovernmental financeand landdevel-

Reconcling
PublicEntrepreneurship
andDemocracy
131

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opment,public-private partnerships
entrepreneurial frequent-
lyrequiresecrecyiftheyareto be successful.In theinterest
oftheprivatedeveloper,land-usedecisionsare oftenkeptas
al risk
Entrepreneu may
taking bemore
secretas possibleand,in theprocess,compromise thepub-
to know.
lic'sright with
democratic
congruent ifitis
stewardsbip
Because manyentrepreneurial
of competition
deals are done in theface
fromothercities,as in thecase of automalls
preceded information,
bypublic and
discussion,
and elsewhere,the pressureto help subsidize
in California
the privateentrepreneurcan yieldlargeoutputsof public acceptance
formal who
bythose have
will to
money(Bellis,1987). Thewisdomofthese,or,inthecase of
Oakland'sfight Raidersback,can producemajor
to get"their" bear
the
risks
should
they
fail.
budgetaryoutlays,whichmaynotproveto be veryproduc-
tivewhenopen to publicscrutiny and measuredin termof have needed to be adept economic and political
theoverallpublicinterest. entrepreneurs. Although Mitchell and Scott(1987)raiseques-
tionsas to how entrepreneurial publicentrepreneurs or any
entrepreneurs actuallyare,thereis also the important ques-
tionofhow "public" arepublicentrepreneurs. The answerto
RiskTaking
Entrepreneurial thisis to be foundin theearlierdiscussionof administrative
VersusDemocraticStewardship responsibility.Publicentrepreneurs need to taketheirpoliti-
cal authorityseriously and followtheprinciples ofdemocratic
Fourth,entrepreneurial risktakingmayconflict withthe theoryin policydesignand implementation as Burkeand
obligation to be a stewardof the publicgood. Democratic Cooperstated.We proposethat,following Cooper'slineof
stewardship is concerned withtheprudent use of thepublic reasoning, theyalso needto be concerned witha moreactive
trustto achievebothlong-and short-term goals compatible approachto administrative responsibility which includes
witha conceptofthepublicinterest.Whendirected byleg- helpingto facilitate increasedcitizeneducationand involve-
islativeor executivemandate, engagein
publicadministrators ment.We callthisa civic-regarding entrepreneurship.
risk-taking behavior(such as economicdevelopmentpro-
jects) thatare subjectto changingbusinesscycles. The Certainly, notall publicadministrators areconcerned with
administrator mayface professional and ethicaldilemmas if citizenship and public participation,although many observers
he or she believesthattherisktakingdemandedis unwise. argue that they should be (e.g., Frederickson,1982).
Whenengagingin nonmandated theresponsibili- However, given the areas of conflictbetween public
risktaking,
tiesofthepublicadministrator becomeevenmorea steward- entrepreneurship and democracy listedabove,itis important
ship issue. High-risk investment schemesthathave gone for a truly"public"entrepreneurship to be civicregarding.
wrongand resultedin economiclosses, failedarbitrage To borrowfromBenjaminBarber'sdistinction between
efforts in investing federalgrantfunds,and short-term bor- thinand strong theories of democracy (strongtheories being
rowingto pay operating costs,as in thecase of New York participatory), we maintain thatonlya thintheoryof public
City'sfiscalcrises of the seventies,are all examples of entrepreneurship presently applies(Barber,1985). The thin
entrepreneurial risktakingthatignoredtheprudentconcern theory, in accordwithliberaldemocratic theory,is ofa public
forthelong-term publicgood (Shefter, 1985). entrepreneurship thateffectively and responsively generates
public revenue in orderto providepublicservices. To do
Entrepreneurial risktakingmaybe morecongruent with and dis-
this,publicentrepreneurs musthave theautonomy
democratic stewardship if it is precededby publicinforma-
cretion to demonstrate theireconomicand politicaltalentsin
tion,discussion,and formalacceptanceby thosewho will thepublicinterest.The citizenry's roleis one of evaluation
haveto beartherisksshouldtheyfail. Indianapolis founda successand responsiveness.
and trustin theentrepreneur's
professional footballteamto fillitsstadium, butothercities However,theevaluationand trustasked of the citizenry is
have had a difficult timefinding privatedevelopersto make problematic becausepublicservicedelivery qualityis difficult
theirpublicentrepreneurial ventures profitable. to measure, and entrepreneurs can oftenfail.Consequently, a
citizen'scontinued passivitymayonlybe a signof political
alienation.
Towarda More"Public"Public A strongtheoryofpublicentrepreneurship (a civic-regard-
TheCase fora
Entrepreneurship: following
ing entrepreneurship), Barber'sdistinction, should
or one wherethe citizenry have greater
Entrepreneurship
Civic-Regarding be participatory
in thedesignand delivery
to participate
opportunities oftheir
The rangeofadministrativeand democratic
responsibilities publicgoods and services.As a resultof themore-services-
of publicentrepreneurshelpsdescribethe tensionbetween less-revenue paradoxhandedthepublicadministrator bythe
such entrepreneurship and a democraticpolity. Public voter,citizenscan be held accountable, in part,forcurrent
administrators haveaddedto
who seek to be entrepreneurial in publicservicesand financial
deficiencies resources.These
theirresponsibilities
bytryingto generatenewsourcesofrev- deficiencies havelead to thegrowth ofa publicentrepreneur-
enue forfinancing publicservicesand providing moreser- shipcharacterized byincreased effortsbyadministrators to be
vicesthatpayforthemselves. Givencurrentfiscalcrises,they freeofvoterandtaxpayer control. of
Itis thecitizen'sdistrust

132 PublicAdministration 1992,Vol.52,No.2

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"big"government
led administrative
and the servicesthatit providesthathas
theorists

betweenadministrator
to callforgreatercitizenparticipa-
tion and an improvedcitizenshipas a way of helpingto
regainthe trustof the voteror citizen.Greatercooperation
andcitizenis thedesiredgoal.
I Astrong
theory
requires
ofpublic
a strong
entrepreneurship
theory
ofcitizenship.
A civic-regarding entrepreneurship emphasizingpublic
participationoffers
a remedy forover-zealous pursuitsofself- Equalaccessto high-quality publicservicesshouldbe a basic
interests.It offers
a program of actionthatcouldmakepub- citizenship rightthatshouldnotbe jeopardized.However,
lic entrepreneurship and democracymore compatible. fiscallimitsthreaten the provision of publicgoods and ser-
Throughdeveloping citizens'opportunities
to participate,the vices. Thus,theentrepreneurial talentsof publicadministra-
qualityofcitizenshipcouldbe raisedto a levelwherecitizens torsarecrucialto a civic-regarding entrepreneurship.
themselves becomemoreresponsible agentsofefforts to pro- However, public administrators, as civic-regarding
videmorepublicgoodsand serviceswithin theparameters of entrepreneurs, can go muchfurther. Theycan increasethe
acceptabletaxburdens. abilityofcitizensto complainaboutthequalityoftheirpublic
Atthehighest levelofpoliticalaspiration,a civic-regarding services and help to facilitate
correcting efforts (Sharp,1986).
entrepreneurship can be seen to be attempts, to use George In similar fashion, New York City and other local govern-
Frederickson's words,to "recovercivism,"whichembraces mentsthatcreateuniform-service districts thatenablea citi-
amongotherthings, politicalcommunity, self-aware citizens, zen to use a singlesiteforreachingtheappropriate service
and more adaptable and responsive government providers are also increasing the opportunities for greater
(Frederickson, 1982). Expandingon Frederickson's call for involvement in ensuring servicesystems thatare responsive
our disciplineto rediscover itsown citizenship responsibili- (Mudd, 1984).
ties,administrativetheorists
havestressed thatpublicadminis- Whenit comes to providing the rationaleforspending
tratorsshouldbe held responsible forhelpingfurther "civic publicfunds,a civic-regarding entrepreneurship wouldentail
literacy"(Mathews,1984,p. 124),civility (as in forbearance creatingcitizenbudgetcommitteesto help set priorities
[Hart,1984,p. 116]),and "civiccapital.""Civiccapital"can be beforeanyformal budgetapprovalis madeby theexecutive
definedas: "problemsolvingknowledgepossessedby citi- and legislativebranches.Portland, Oregon;Dayton,Ohio;
zens,attitudes thatguidecivicaction,and civiccapacityfor and, in some respects, New YorkCityall tryto getcitizens
governance" (McGregor, 1984,p. 128). The goals of such moreinvolved earlierinthebudgetary process.
effortswouldbe, to citeCharlesLevine's(1984,p. 180) list,
theraisingof citizentrustin government, Because public often
entrepreneurship is manifested inthe
thecitizen'ssense
of efficacy,and,hopefully, a sharedconception formofeconomicdevelopment projects, anyeffort at a civic-
of thecom-
mongood. oriented entrepreneurship needsto increasetheability ofciti-
zensto see, comprehend, criticize,
amend,and jointly design
A strongtheoryof public entrepreneurship requiresa theprojectsso thattheirneighborhood or community is not
strongtheoryof citizenship. Bettercitizenparticipation, disrupted or victimized bythedevelopment effortsof others.
alongwithnew sourcesof publicrevenueand betterpublic Whereneighborhoods arewelldefined, neighborhood associ-
policiesand services,are highstandards forpublicadminis- ations,citizenadvisory boards,etc.,maybe in orderifciti-
tratorsto tryto reach.These loftyaspirations, however,are zens are to defendand enhance theirown community
abstractwithoutcleareridentification of thetypeof citizen- (White,1983;Marcuse,1990).Although criticized forpossibly
ship role one is talkingaboutand specifications as to how raising theNotIn MyBackYardproblem, overallsocialequi-
opportunities forcitizenship and a citizen'spubliceducation tyconcernsare betterservedby mutually agreeablezoning
can be enhanced. and development thanwhenthecitizenry and neighborhoods
At a minimum, a civic-regardingentrepreneurship is no haveno say.
different fromall otherendeavorsto increasecitizenpartici- Elevatingcitizenchoice,as in thecase ofvouchersystems,
pation. However,as DwightWaldoreminds us, notall citi- maystillbe thebestwayforenhancing citizenparticipation.
zen participationis ofa publicor collectivecharacter (Waldo, Budgetand land-usedecisionsareamongthemostimportant
1984); it can simplybe expressionsof self-interest, interest forall stakeholders. Beingurgedto becomemoreresponsi-
groupliberalism, or specialpleading. In addition, it can be ble forone'spublicchoices,withpublicsectorstaff providing
moremanipulative thanfacilitative
and moresymbolic than neededinformation, maymakecitizeninputfarmoreinfor-
effective.It mayalso be moredivisivethanfacilitative or mativeforcitystaff andelectedofficials.
benevolent.Lastly,it mayrequiremoreconcernforsocial-
equityconsiderations thanare foundin liberaldemocracy The use ofcitizenvolunteers to helpprovideand produce
(Bellahetal., 1985;Frederickson and Hart,1985). publicserviceshas beensuggested as another wayofincreas-
ingopportunities forcitizenparticipation. Volunteerism has
Thereare different degreesor levelsof politicalparticipa- increasedin manyfiscally troubled citiesand countiesoutof
tion(Milbrath, 1965,pp. 5-38). In thecase of administrativeself-defense. Neighborhood safetypatrolsand arson-preven-
democracy, the same maybe said. At a minimum, citizens tionvolunteers are cases in point. In upper-class suburbs, a
can onlytakepartin publicservicedelivery systems ifthey highlyeducatedcitizenry oftendemandsa highlevelof par-
receive public services. Not all do. Thus, considerable ticipation forthemselves in thedesignand delivery of their
doubtsexistas to fairnessin such distributions of services. publicservices.Suchcitizenvolunteerism is a showof civic

Reconcling
PublicEntrepreneurship
andDemocracy
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obligationand duty.It is a wayofstretchingscarceresources 1978). A civic-regarding entrepreneurship is aboutfinding
to enable citizensto providemoreand betterservicesthan thoseopportunities. Forthosewho findtheopportunity to
theywouldotherwise havereceived.It mayalso be a wayof do so, a moredeeplyfeltobligation to be better citizensmay
increasingthecitizenship rights
and especially
thecitizenship developand perhapsa willingness to give moreof them-
obligationsof manypeople who would otherwiseremain selvesfortheprovision of neededpublicservices.The will-
outsidetheservicedelivery systems
ofgovernments. ingnessto pay is one important sign thatcivic-oriented
Froman historical perspective,
ithas been entrepreneurial entrepreneurship is present.A civic-regarding entrepreneur-
volunteers
who havefirst providedmostpublicservicesfrom ship is a reminder of our rolesas both agents (participants)
thepostalservice,to thepolice,downto present-dayneigh- and members(with political obligations)to the polity
borhood mediation services (Ellis and Noyes, 1978). (Tussman, 1960).
Volunteers,when aided by government officesof volun-
teerism,have been crucialto a deliveryof manyservices,
CarlJ. Beilone is a professorof publicadministration
at
especiallynew and moreinnovative socialservicesthatfacili-
California
StateUniversity,
Hayward, witha Ph.D. in public
tatecompassion, benevolence,and theequal distributionof administration fromthe UniversityofSouthern His
California.
publicgoods. includepublic entrepreneurship and the
research.interests
publicserviceand the qualityof workinglife. His articles
Conclusion have appearedin variouspersonneland management jour-
nals.
De TocquevilleandJohnStuart Millsaw thejuryas a key
to a citizen'spubliceducation.Today,thereare morevehi- George FrederickGoerl is an associateprofessorof
cles forincreasingtheopportunitiesfora citizen'sparticipa- public administrationat California State University,
tionand civiceducation(Barber,1985,pp. 261-311).Notall Hayward,wherehe teachespublicfinanceand budgeting.
citizensmaywantto participate, and theyshould not be His researchinterestsinvolvecitizenvolunteerismand the
forcedto do so underthetenetsof liberaldemocratic theory design and deliveryof public services. He is currently
(Meyers,1990). However,as MorrisJanowitzand Gerald workingon a comparativestudyof governmental volun-
Suttleshave argued,theremaynotbe enoughopportunities teer programsin the UnitedStatesand othereffortsin
forthose who want to participate(Janowitzand Suttles, publicentrepreneurship.

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