The rise of the social economy, sometimes referred to as the fourth sector, began in the 1980s. Then-President Ronald Reagan drastically cut public spending, which significantly decreased the amount of funding non-profits received. Yet, as neoliberal shifts privatized what were previously public services, the non-profit sector became increasingly necessary to provide goods and services. The third sector blossomed; as of 1980, there were just 32,000 tax-exempt charitable organizations registered with the IRS, but by 2006, that number grew to over 600,000. Continued stagnation in funding throughout the late 1990s despite the growing number of nonprofits meant increased competition for the limited grants available to the third sector. As such, non-profits became increasingly entrepreneurial as a means of survival, giving rise to the social economy or so-called fourth sector. This "fourth sector" differs from the third sector by its location (in the United States) and its emphasis on business (as opposed to government) leadership. In the contemporary neoliberal socioeconomic and political environment, the United States' market-based mechanisms are emphasized in the social sector, such as within social entrepreneurship and venture philanthropy.