Limitations to SE-Katy Bernhardt

As I read some of the other blog posts about starting from the mission and beginning there with social entrepreneurship. I start to think about my internship, Hope Haven of Northeast Ga. Many nonprofits receiving a large amount of the funding from the federal and state governments. Hope Haven receives a significant amount of their funding from the Medicaid Waiver program.

The government places many restrictions on what agencies can bill, even just setting up money for a client is a difficult and lengthy process. The government sets up the guidelines for what is included in programs offered and agencies are allowed to provides services in the different programs. There are many limitations that agencies face by following these mandated guidelines.

So I pose the question how do SE's handle these sort of limitations to still be entrepreneurial while sill providing services and following guidelines? In this economy it is especially difficult to depend solely on fundraisers or grants to provide funds for all services. Some of the rules and restrictions placed on agencies doesn't always make much sense and can be costly for organizations to follow, which leads to poorly paid staff, and a high turnover. It is difficult to be innovative with a high turnover rate. Is it really possibly to be true entrepreneurs while receiving government funding?

I realize that not all government funding is the same and many do not have the restrictions like the Medicaid waiver program. But for organizations like Hope Haven and number of clients that are served this is nearly impossible. What are approaches that can be made to make an organization more entrepreneurial?