Entrepreneurship, process innovation and value creation by a non‐profit SME

Purpose By using three key factors – namely, funding, stakeholders, and legitimacy – this study seeks to analyse the successful entrepreneurial experiences of a non‐profit small to medium‐sized enterprise: the Taiwan EBook Supply Cooperative Limited (TEBSCo). Design/methodology/approach The paper takes the form of a case study. Findings From a legitimacy perspective, TEBSCo is the only registered organisation facilitating e‐book consortia in Taiwan. From a stakeholder perspective, TEBSCo is managed by a board of directors, who are elected from the member representatives. In addition to creating value for its members, TEBSCo also creates value for non‐members and vendors. Its major funding is from annual membership fees. TEBSCo's innovation process, as a collective entrepreneurial activity in a non‐profit SME, creates intangible as well as tangible value. The successful experiences of TEBSCo can be used as examples for new entrants. Originality/value TEBSCo is the only registered organisation facilitating e‐book consortia in Taiwan. The successful experiences of TEBSCo can be used as examples for new entrants, and shows a new form of entrepreneurial activity.