Abstract
The article focuses on the factors that hinders the growth of artistic organizations. It is generally recognized that the problems of operating artistic institutions are very different from those encountered by the managers of commercial enterprises and that the arts operate under such a financial handicap in the free market that it is difficult for them to survive without public support. This article attempts to analyze the factors that make it difficult for artistic organizations to flourish in the open market. These factors can be conveniently broken down into two categories. The essential difference between the goals of a not-for-profit artistic organization and those of a business organization follow from the fact that the former is primarily product-oriented and the latter is primarily market-oriented. The purpose of the not-for-profit artistic institution is to enable artists to create and communicate their output to the society at large according to their artistic consciences.